Noreco: 1Q loss narrows

Norwegian Energy Company ASA (Noreco) today announced what the company described as “good financial results for the first quarter 2014.”

Higher production resulted in increased revenues and NOK 166 million in operating profits before depreciation and amortisations (EBITDA). The company reported a net loss of NOK 64 million for the quarter,
compared to a loss of NOK 273 million for the first quarter 2013.

Noreco said its exploration activities in the second quarter would increase. Noreco is the operator for the Verdande well, which was spudded in the Norwegian Sea in April. The company is partner with Lundin, which is currently about to spud an appraisal well at the Gohta discovery in the Barents Sea.

“Both wells are exciting. We are approaching the presumed reservoir at Verdande and expect that the results from the well will be available within a month. The Gohta discovery was the largest on the Norwegian Continental Shelf last year. The first appraisal will now assess the extent of the field to the west and the reservoir properties in this part of the discovery,” says Svein Arild Killingland, CEO of Noreco.

“In parallel we are systematically maturing our other licences with encouraging results. We have identified an interesting prospect in PL 616 far south in the Norwegian part of the North Sea. This will most likely be drilled in 2015. We also see interesting potential in deeper layers under the Huntington field on the UK shelf,” says Killingland.

Noreco said its total production of oil and gas was satisfactory in the first quarter, and good in February and March when both the Huntington field and the Nini field in Denmark recorded steady performance.

“In April and May we were again reminded that unforeseen events may impact our production and revenue stream. The Huntington field was closed for a month from the middle of April and the Oselvar field was
closed for a week. In May, the Nini field will be shut-in for a few days, to allow for planned repair at the Siri platform nearby”, Killingland concluded.