Norse Energy Pleased with 2Q07 Results
Norse Energy Corp. closed the second quarter with record natural gas and oil production. Production was up 70% from the first quarter of 2007 to an average of 4 472 BOE/day.
EBITDA for the quarter reached a record US $8.12 million, up from US $0.24 million in the first quarter. Net profit for the quarter totaled US $ -1.36 million.
Manati gas sales (net of retainage) with associated condensate, increased to 1 812 BOE/day, a 137% increase over the previous quarter as we had a full quarter with three out of six wells online. After the close of the quarter, our fourth well came online, the Manati well #5 which began producing in mid-July. Production is expected to increase further in the third quarter.
Oil production from the Coral field increased by 72% to 1 805 BOE/day compared to the first quarter, mainly due to the successful workovers on the Coral well #5. However, production is still volatile and shows a natural decline into the third quarter.
The exploration licenses in Brazil are still awaiting environmental approval from IBAMA to commence our seven high impact drilling prospects.
Total gas production was up 6% over the first quarter of 2007 to a new high of 855 BOE/day. We spudded 13 wells, completed 9 and put 17 wells on line during the quarter. No dry holes were drilled.
The continuing encouraging production from the company's first horizontal well, coupled with promising interpretation of our seismic data, supports our strategic decision to target technologically more challenging, but larger reservoirs. We will continue our strong focus on leasing and seismic, and we shot both vibroseis and traditional 3D seismic during the quarter. Pipeline throughput and marketing volumes remained firm during the quarter.
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