Noreco to Sell Stake in Flyndre Discovery

Norwegian Energy Company (Noreco) has entered an agreement to sell its share of the Flyndre Paleocene discovery to Maersk Oil for a consideration of NOK 19 million.

Flyndre Paleocene is a cross border discovery operated by Maersk Oil, of which the Norwegian part is located in license PL018C where Noreco holds a 13.338 percent interest.

Noreco's estimated share of proved and probable reserves in this discovery is 0.4 million barrels of oil equivalents. The license also contains a discovery in the Cretaceous formation which will be carved out and retained by Noreco.

The Flyndre sale is expected to have a positive accounting effect of approximately NOK 10 million after tax. The transaction and carve out of the Cretaceous formation as a separate production license are subject to approval by Norwegian authorities.