Noreco Takes Bigger Bite of North Sea Assets

Noreco has announced two transactions to strengthen its portfolio.

"We have a growing portfolio of 7 producing fields, 21 discoveries and over 50 exploration licenses, and the transactions announced today are part of our active, ongoing portfolio management to high-grade our portfolio," said CEO Scott Kerr.

Noreco has entered into an agreement to acquire a 30% interest in license PL471 in Norway from Sagex Petroleum Norge AS. The license is located just north of license PL348 where Noreco recently announced the Gygrid oil discovery; the third discovery on the license. There is significant prospectivety in Cretaceous and Middle Jurassic sandstones in license PL471, and the license has a potential of over 300 million barrels of recoverable hydrocarbons. An exploration well is planned to be drilled on the license in 2010 or 2011.

"This transaction strengthens our position in this prolific area in the Norwegian Sea. Based on our recent discoveries in the neighboring license and our knowledge of the area, we are very excited about the exploration prospects in PL471," said Lars Fosvold, Vice President for Exploration at Noreco.

Noreco has also entered into an agreement to sell a 20% interest in PL442 in Norway to Svenska Petroleum Exploration AS. Noreco will not have an interest in the license following the transaction, and will as such not participate in the planned well in the license in 2009.

The effective dates of the PL471 and PL442 transactions are July 1, 2009 and January 1, 2009 respectively. The transactions are subject to customary approvals.