Noreco's Production Update

Net production for Norwegian Energy Company ASA (Noreco) in February 2015 is estimated at 2 752 barrels of oil equivalents (boe) per day. Net realised price in February was USD 61.9 per boe (USD 65.9 per barrel of oil) after adjustments for inventory, NGL and gas prices.

The lower than usual daily average production for the month reflects that Noreco was in default under several licence agreements in the period.

Production per field, February 2015 (January 2015 in brackets):
All in boed

Huntington – 1 828 (1 506)
Nini – 0 (1 846)
Cecilie – 327 (429)
Oselvar – 458 (456)
Lulita –139 (116)
Enoch – 0 (0)
Total – 2 752 (4 353)

As previously reported, Noreco was prevented from making payments for its share of production costs at the producing fields in Denmark (Nini, Cecilie and Lulita) and the United Kingdom (Huntington). The company was consequently in breach of the respective licence agreements and cut off from receiving further information about performance at the fields. Noreco’s share of production for this period is therefore preliminary and may be subject to change.

By the end of February, Noreco made the required payment to the Huntington licence, and the situation at Huntington is therefore restored to normal. Huntington production in February was stable but restricted to approximately 1 900 bopd net to Noreco due to technical issues at the CATS gas export system, as previously reported. According to the operator, the CATS riser platform may return to normal operation in March.

The Oselvar field reported stable performance through February. Restart of the Enoch field is expected in March 2015.