Noreco Boosts Production, Boasts Strong Field Performance

Noreco noted that its oil, gas and NGL production for August 2008 was 15,150 barrels of oil equivalents per day.

"We continue to produce at a high level and are ahead of plan. We are pleased to have completed a maintenance shut down at the South Arne field according to plan," said CEO Scott Kerr.

Production from Noreco's portfolio of seven producing fields was 15,150 barrels of oil equivalents (boe) per day in August 2008. The strong production is underpinned by good underlying performance in the fields. The South Arne field in Denmark, which produced 1,575 boe per day net to Noreco in the second quarter, was shut down for 16 days for planned maintenance in August and will start up again today to plan.

Sale of oil in August was done at oil prices of US $116 per barrel. After value adjustments for oil inventory, cost of put options and NGL and gas prices the average net price per barrel oil equivalent achieved for August was US $104.

The production volumes are preliminary and are subject to adjustments, including final allocations between fields, quality adjustments and prices.