Noreco Cites Strong Exploration Results for Second Quarter

Noreco has made three new oil and gas discoveries and received the second largest award in the 20th licensing round in Norway in the second quarter of 2009.

"We demonstrated very strong exploration results in the second quarter, and we are looking forward to continue to execute our selective exploration program and to access new growth opportunities," said CEO Scott Kerr

Exploration Success

Noreco made important discoveries at Gita, Grosbeak and Gygrid in 2Q 2009, and received 5 licenses in the 20th licensing round in Norway.

Developments Progressed Towards Production

Key milestones were met for the developments in the quarter, including installment of the Nini East platform in Denmark and approval of the Oselvar development in Norway. The Nini East development is on track to start production in Q4 2009, giving in excess of 3,000 barrels incremental production net to Noreco.

Q2 Results

The production of 11,500 barrels per day was realised at 60 $/barrel, giving revenue of NOK 401 million for the quarter. The operational result (EBITDA) was NOK 85 million and the net result was negative NOK 101 million.

Strengthened Financial Position

Noreco continued the efforts to improve its capital structure in the second quarter, and completed an equity issue of NOK 214 million and
an extended and increased exploration loan facility of NOK 1,050 million.