Noreco Gas Discovery in the North Sea

The oil company Noreco announces the results from its gas discovery on the Gita field in the North Sea. - Based on the discovery well our base case is 250 million barrels of oil equivalents with substantial upside, says CEO Scott Kerr.

Gita
The drilling results from Gita are very promising. The resource potential is substantial at 600 million barrels of oil equivalents. Noreco`s interest in the discovery is twelve percent.

Q1 2009 results
Noreco recorded first quarter operating revenue of NOK 469 million, a seven percent increase from first quarter 2008. The operational result (EBITDA) was NOK 116 million and the net result was negative NOK 46 million. The company had a cash position of NOK 562 at the end of the first quarter, and 406 million in financial instruments.

Increased production and reserves
Noreco's production in the first quarter 2009 was in line with the guidance at 13,625 barrels of oil equivalents, an increase of 43 percent from first quarter 2008. Noreco expects a significant increase in production when the Nini East Field starts up production in the second half of the year. In the first quarter Noreco has added 7.8 million barrels to its reserve base, an increase of 24 percent compared to the reserves at the beginning of the year.

Strengthened financial position
Noreco has during the first quarter 2009 secured long term financing through refinancing of the outstanding NOK 2,240 million bond. By this refinancing Noreco has strengthened its financial position considerably.