Noreco: November Production Up. Siri to Remain Shut Until Q2 2014

Norwegian Energy Company (Noreco) produced 4 689 barrels of oil equivalents per day (boed) in November 2013 (3 982 boed in October).

Adjusted for inventory, net realised price was USD 97.9 per boe(USD 107.1 per barrel of oil).

As previously reported, the production volume restrictions imposed by the CATS pipeline operator on the Huntington field was partly lifted in November. Consequently, output from the field continued to increase and exceeded 5 000 boed on average net to Noreco during the first days of December. On 5 December the FPSO was shut down due to extreme weather conditions. Production restarted late 7 December and ramp-up is planned to continue through December towards expected plateau level of 6 400 boed net to Noreco.

November production performance at the Oselvar field was good, but slightly lower than in the previous month. As stated before it is expected that Oselvar production will decline towards a normalised 600-700 boed level.

The Lulita field produced well in November, but the field was shut for a total of 15 days in the period, mainly due to maintenance at the Harald field.

Also in the Danish sector the Nini, Nini East and Cecilie fields (the Siri Fairway fields) have remained shut in due to technical issues at the Siri platform. In early December the Siri field operator DONG Energy filed the application to Danish authorities for an intermediate production solution by direct loading to ship, and is still targeting start-up in the near term. For planning purposes Noreco assumes that production will not resume until Q2 2014, after the winter season.

Average production level for the Siri Fairway fields is expected to be significantly lower than before the shut-down last summer due to low regularity in the direct loading period and planned shut-downs related to the Siri permanent repair project.

Production per field, November 2013 (October 2013 in brackets):

All in boed

Huntington – 3 813 (2 668)

Nini East – 0 (0)

Cecilie – 0 (0)

Nini – 0 (0)

Oselvar – 756 (1 053)

Lulita – 121 (207)

Enoch – 0 (0)

Total – 4 689 (3 928)

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December 10, 2013