Noreco divests Brage and Hyme
(Thomson Reuters ONE) -
Stavanger, 24 May 2011: Norwegian Energy Company ASA (Noreco, OSE:NOR) has
signed an agreement to sell its shares in the Norwegian oil fields Brage and
Hyme to Core Energy.
"It is a strategic priority for Noreco to renew and strengthen the company's
production base, and we are currently undertaking a substantial investment
program which will add two new producing fields to our portfolio and contribute
to significantly higher production and lower unit cost from next year. Brage is
one of the oldest fields in our portfolio, while Hyme is a discovery where the
development is about to start. The sale of these assets will improve Noreco's
financial capacity, and will also lower our investment requirements going
forward. In sum we see this transaction as an important step towards a more
balanced portfolio and a stronger financial position," says Einar Gjelsvik, CEO
in Noreco.
The consideration to Noreco is USD 85 million net of tax with effective date
01.01.2011. In addition a pro et contra settlement will be made upon completion.
Noreco may under the agreement receive additional compensation if a Plan for
Development and Operations (PDO) for other discoveries in the Hyme license is
submitted within six years. The transaction is subject to customary approval by
Norwegian authorities.
Brage is an oil field east of Oseberg in the northern part of the North Sea. The
field was discovered in 1980 and started production in 1993 from an integrated
production, drilling and accommodation platform. Noreco owns 12.3 percent of the
Brage field, which is operated by Statoil. Noreco's share of production from
Brage in the first quarter 2011 was 2,818 barrels oil equivalents per day.
The Hyme discovery (formerly known as Gygrid) is located in license PL348 in the
Norwegian Sea between the Draugen and Njord producing fields. Noreco has an
interest of 17.5 percent in the license, and Statoil is the operator. A PDO was
submitted 12 May 2011 for a subsea tie-back development to the Njord field, and
first oil is scheduled for the first quarter of 2013.
Core Energy is an oil and gas company established with the aim of capturing the
value potential in and around producing oil and gas fields on the Norwegian
Continental Shelf. The company is backed by the leading oil and gas focused
private equity investor HitecVision.
For further information, please contact:
Einar Gjelsvik, CEO (+47 992 83 856)
Kjetil Bakken, VP Strategy & Investor Relations (+47 91 889 889)
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Source: NORECO via Thomson Reuters ONE
[HUG#1518360]
Unternehmensinformation / Kurzprofil:
Datum: 24.05.2011 - 15:38 Uhr
Sprache: Deutsch
News-ID 54943
Anzahl Zeichen: 3299
contact information:
Town:
Stavanger
Kategorie:
Business News
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"Noreco divests Brage and Hyme"
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