Noreco Takes FID on Two Halfdan Infill Wells to Increase Gas Production From 2023

Norwegian Energy Company ASA (“Noreco” or the “Company”) is pleased to announce a Final Investment Decision (“FID”) on two infill wells, where the first well is expected to be drilled by the jackup rig Shelf Drilling Winner in the early spring of 2023.

The two wells will be drilled at the Tor reservoir in the Halfdan North East area, located in the central part of the Danish North Sea. Both the wells are expected to increase gas production from the Halfdan field, with plateau production expected during autumn 2023. The first well alone is expected to have an initial production rate of 3 mboe/day net to Noreco where approximately 75% is gas. The expected gain from the infill wells is approximately 2.9mmboe net to Noreco, of which c. 50% is gas.

The total cost net to Noreco is USD 39 million, implying a total unit development cost of approximately USD 13 per barrel of oil equivalent. Based on expected reserves and forward curves of Brent and TTF from November 2022, the forecast IRR is above 200% with a payback period of c. six months, making the infill wells highly attractive from an economic and strategic perspective.

“I am delighted to announce this significant milestone for the Danish Underground Consortium (the "DUC") where we have not had drilling activity since 2019. It has never been a better time to invest in further drilling and field development activities to ensure that the recovery from the DUC fields is maximised. Several highly economic opportunities are currently being matured and this is the first of many investment decisions to be made, in line with Noreco's objective to maximise gas output in the short-, medium- and long-term,“ said Marianne Eide, Chief Operating Officer in Noreco.