Noreco Farms-Out 20% Interest in Norwegian License to Lotos

Noreco signed an agreement with Lotos Exploration and Production Norge AS to farm-out of exploration license PL455 in Norway. Lotos Exploration and Production Norge AS will earn 20% interest in the licenses against paying 60% of the gross costs related to the recently completed seismic survey over the license. Completion of the transaction is pending on customary approvals.

"We have a growing portfolio of 7 producing fields, 18 discoveries and 54 licenses, and this transaction is part of our active, ongoing portfolio management to high-grade our portfolio," remarked CEO Scott Kerr.

"We are pleased to do a deal with one of the new entrants to Norway," continued Kerr.

The license is located in the Egersund basin and was awarded in the APA2007 round. Noreco is the Operator of the license, and will have a 50% interest after the transaction.