Norway: Noreco’s Oil and Gas Production Report May 2010

Noreco’s oil and gas production in May 2010 was 13,500 barrels of oil equivalents (boe) per day. Net realized oil price was USD 71 per boe after adjustments for oil put options, inventory and NGL and gas prices.

Production from the four fields in the Siri area was 17,400 boe/day in total (6,500 boe/day net to Noreco), and continued to be affected by the previously announced gas handling issues. In addition, one well at Siri was shut down pending repair of a subsea safety valve. The Siri field produced 4,800 boe/day (2,400 net), Nini East 8,000 boe/day (2,400 net), Nini 3,525 boe/day (1,050 net), and the Cecilie field produced 1,050 boe/day (650 net). A five-day maintenance stop is planned in June, where part of the scope is to improve the gas handling issues.

Brage’s production increased to 40,950 boe/day (4,975 net) due to high regularity and a new well brought on stream, while South Arne was stable at 23,400 boe/day (1,525 net). Net production to Noreco from the fields Enoch and Lulita was 200 and 300 boe/day respectively.

Production volumes and prices are preliminary and are subject to adjustments, including final allocations between fields, quality adjustments and prices.

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Source: Noreco, June 9, 2010