Noreco divests Siri
(Thomson Reuters ONE) -
Stavanger, 25 July 2011: Norwegian Energy Company (Noreco) has entered into an
agreement to sell its interests in the Siri field in Denmark to DONG Energy.
The agreement involves Noreco's 50 percent interest in license 6/95 in Denmark,
and the price is USD 13 million with effective date 1 July 2011. Noreco's
ownership in Siri's satellite fields Nini East, Nini and Cecilie remains
unchanged and unaffected. As part of the agreement Noreco will not carry any
historical or future costs related to the permanent repair solution for the Siri
field. These costs have been estimated to be DKK 2 billion in total.
Noreco retains until 30 August the right to sell its interests in Siri to other
parties at a higher price. Noreco also retains all existing and future insurance
claims relating to the damage to the caisson support structure of the Siri
platform, as well as tax balances in Altinex Oil Denmark of USD 26 million. The
transaction is subject to customary approval by Danish authorities.
"This agreement is positive for Noreco because it removes the inherent
uncertainty around the Siri situation. We now know that Noreco will not take
part in the future investments on Siri. We also know that the operator DONG
Energy will take all necessary steps to secure continued operations on Siri,
which will benefit Noreco as a partner in the satellite fields Nini East, Nini
and Cecilie," says Einar Gjelsvik, CEO in Noreco.
If Noreco does not sell its interests in Siri to other parties, the transaction
is expected to be completed in the third quarter 2011, and is then expected to
have a negative impact on the third quarter 2011 result in the order of USD 60
million after tax.
Noreco currently has a strong cash position. Following this transaction and its
impact on Noreco's covenants and borrowing base, the company will continue to
improve its long-term financing, and will as part of this also consider further
asset sales.
The Siri field is located in the Danish part of the North Sea, and oil
production started in 1999. The Siri platform is also processing and exporting
oil from the satellite fields Nini East, Nini and Cecilie. DONG Energy is the
operator for all four fields. Noreco's share of remaining oil reserves in the
Siri field was 5.8 million barrels at the end of last year. During the first
half of 2011, Noreco's share of production from the Siri field has been 1,764
barrels per day on average.
Contact:
Einar Gjelsvik, CEO (+47 992 83 856)
Kjetil Bakken, VP Strategy & Investor Relations (+47 91 889 889)
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: NORECO via Thomson Reuters ONE
[HUG#1533036]
Unternehmensinformation / Kurzprofil:
Datum: 25.07.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 56663
Anzahl Zeichen: 3497
contact information:
Town:
Stavanger
Kategorie:
Business News
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"Noreco divests Siri"
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