Noreco's production in August 2009 was 11,000 barrels of oil equivalents per day, realized at US $71 per barrel. Production is expected to increase significantly through the rest of 2009 as new wells start up on Nini and Brage, the new field Nini East starts production and the Siri and Lulita fields are brought back on stream.
On the Nini Field a new producer was started on August 27 at rates of more than 3,000 barrels per day gross. A Nini water injection well has also been drilled and completed at Nini, and will further strengthen the production from the field. At the Brage Field, drilling of the next infill producer is in the final stages and start of production is expected in October. The Nini East Field is scheduled to start production in Q4 and will contribute with more than 10,000 barrels per day gross. The Lulita Field is coming back on stream in mid October, following a 3 months maintenance production shutdown at the Harald Field.
The production in August was in line with the latest guidance for 2009. The underlying production from the fields was as expected in August, with good stable performance from most of the fields. The Nini Field production was significantly reduced in August due to a 7 days unplanned shutdown and downtime on Nini water injection during replacement of the water injection pipeline. The Siri field showed favorable production response to higher water injection and produced at rates up to 10,000 barrels per day gross in August. The Brage Field continues with strong production performance, producing at more than 35,000 barrels of oil equivalents per day gross at the end of August.
Production on the Siri platform was temporarily shutdown on August 31 as a routine inspection revealed cracks in steel plates on a subsea
Prior to the shutdown production from the Siri Field was 10,000 barrels per day gross, while total production over the Siri platform was in the order of 13,500 barrels per day gross. The shutdown is not expected to have any adverse effect on the reservoir or field reserves, and the production is expected to be fully restored when the Siri facilities are back in production in October.
The net achieved price of US $71/boe in August reflects Noreco's oil price put options at US $50 and US $75 per barrel as well as adjustments for inventory and NGL and gas prices. The production volumes and prices are preliminary and are subject to adjustments, including final allocations between fields, quality adjustments and prices.
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