Altinex Says 2Q07 Production Slightly Lower than Forecast

Oil, NGL and gas production for 2Q was 9,300 boe/d. Combined with an achieved average oil price of US $65 per barrel of oil equivalents (boe), including the conversion of gas and NGL and deduction of costs for oil price hedging this gave a strong Q2 gross income for the group of MNOK 340.

Production in the last part of the quarter was somewhat lower than forecasted due to three main reasons. Firstly, the Brage field maintenance period was extended and production from the latest drilled well came in somewhat lower than expected. Secondly, on the Siri field a rupture was discovered in the water injection pipeline from the Siri platform to the satellites Nini and Stine Segment 1 (a Siri production well). No water can be injected in Stine Segment 1 before the water pipeline is repaired in September 2007. In Nini, limited water can be injected from the drilling rig at the Nini platform. In addition, the production on Nini was down during the inspection period but is now producing again. Thirdly, on South Arne the underbalanced development drilling of two new wells is delayed. The wells are now expected first to come on stream in 3Q 2007.

We now forecast a 3Q 2007 production in the range of 10,000 boe/d. The increase in production in 3Q is expected to come from the new Nini production well (NA-8), giving an estimated extra 1,000 boe/d.