Norway: Noreco Sells its Brage and Hyme Stake to Core Energy

Norwegian Energy Company (Noreco) announces that the sale of the company’s interests in the Norwegian oil fields Brage and Hyme to Core Energy has now been completed.

The consideration to Noreco is USD 85 million net of tax with effective date 1 January 2011. In addition a pro et contra settlement will be made for the interim period between the effective date and the completion date of the transaction.

The Brage sale will have a negative accounting impact in the second quarter 2011 result, estimated to NOK 140 million of which NOK 17 million is related to results from the interim period. The Hyme sale will have a positive impact on the third quarter 2011 result which is estimated to NOK 23 million. The impact on the company’s equity ratio is expected to be slightly positive due to the reduction in total assets. The company’s liquidity position will be significantly improved.

1 million Norwegian kroner = 185 687 U.S. dollars

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Source: Noreco, July 28, 2011; Image: Statoil