Noreco Posts Production Volumes for March

Noreco's oil and gas production in March 2010 was 13,650 barrels of oil equivalents (boe) per day. Net realized oil price was US $76 per boe after adjustments for oil put options, inventory and NGL and gas prices. For the first quarter in total, production was 11,375 boe/day and realized price was US $73.50 per boe.

Total production from the four fields in the Siri area was 18,450 boe/day (7,300 boe/day net to Noreco). This was below full potential, mainly due to run in problems related to gas processing of the Nini East production over the Siri facilities. The Siri production was 8,000 boe/day (4,000 net). Nini East delivered 6,125 boe/day (1,850 net). Nini produced 3,775 boe/day (1,125 net), while Cecilie production was 550 boe/day (325 net).

Brage production was 35,000 boe/day (4,250 net). Drilling of the second well this year has now been completed, the well will be used for water injection and is expected to be brought on stream during the second quarter.

South Arne production was stable at 23,600 boe/day (1,550 net) with high regularity. Both of the two new infill wells have now been drilled to Top Ekofisk and the 9 5/8" casings have been installed. Drilling of the reservoir section will commence during the coming months.

Net production to Noreco from the fields Enoch and Lulita was 200 and 350 boe/day respectively.