Noreco to Focus on Mature Areas of Norwegian Shelf. Wins Five New Blocks

Noreco has been awarded five new licences in the 2013 Awards in Predefined Areas (APA) in Norway. In two of these, Noreco has been offered operatorship.

“We are satisfied with this result and see this as recognition of our efforts to develop applications of high quality. We are also pleased that the Government has demonstrated its faith in our capabilities to act as operator. The awards are in line with our strategy to focus our efforts in mature areas with moderate geological risks and along producing geological trends,” says Noreco CEO Svein Arild Killingland.

The two operatorships are offshore mid-Norway. PL761 (40 % ownership) is located north-east of Noreco’s current operated license PL484, in which the Verdande exploration well will be drilled in the first quarter this year in a partly similar geologic play. PL762 (20 % ownership) is on the Nordlandsryggen ridge and the main target is a Permian carbonate structure.

The non-operated license PL755 (20 % ownership) is located just west of Noreco’s existing license PL591 Zumba in the Haltenbanken area and the targets are Upper and Middle Jurassic plays. PL748 (20 % ownership) is just west of the Knarr development, targeting Lower Jurassic plays, of which one is the same play that is being targeted in Knarr. PL744S (20 % ownership) is located north-west of the Veslefrikk field. The main target in this license is in the middle-lower Jurassic, in the same geological plays as Veslefrikk and other producing fields in the area.

The company Noreco Norway AS is the formal applicant and will be the formal owner of the licenses mentioned above. Noreco Norway AS is a wholly owned subsidiary of the listed company Norwegian Energy Company ASA.

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Press Release, January 22, 2014