Noreco divests South Arne
(Thomson Reuters ONE) -
Stavanger, 11 August 2011: Norwegian Energy Company ASA (Noreco) has entered an
agreement to sell its interests in the South Arne oil field in Denmark to Hess
Denmark ApS for a consideration of USD 200 million. Noreco expects to record a
profit of approximately USD 50 million after tax from the transaction.
"An important part of Noreco's strategy is to renew and strengthen the
production base. We are currently in the midst of a substantial investment
program which will bring on 8-9,000 barrels per day of new production next year.
Portfolio changes are a natural part of this program. Over the last months
Noreco has entered agreements to sell assets for more than NOK 1.5 billion in
total, and correspondingly also reduced the future investment commitments by a
significant amount. The result is a stronger financial position and a
significantly reduced financial and operational risk of the company," says
Noreco's CEO Einar Gjelsvik.
The valuation date of the transaction is 1 January 2011. The transaction is
subject to customary approval by Danish authorities.
South Arne is an oil field located in Danish North Sea, operated by Hess Denmark
ApS. Production from the field commenced in 1999. The field is currently being
expanded with the South Arne Phase III development, which comprises two new
wellhead platforms and 11 new wells. Noreco owns 6.56 percent of the field. At
the beginning of 2011, South Arne represented 8.8 million barrels oil
equivalents of proved and probable oil and gas reserves for Noreco. During the
first half of 2011, Noreco's share of production from South Arne averaged 1,580
boe per day.
RBC Capital Markets has been acting as advisor to Noreco on this transaction.
Contacts:
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
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originality of the information contained therein.
Source: NORECO via Thomson Reuters ONE
[HUG#1537767]
Unternehmensinformation / Kurzprofil:
Datum: 11.08.2011 - 07:02 Uhr
Sprache: Deutsch
News-ID 57141
Anzahl Zeichen: 2706
contact information:
Town:
Stavanger
Kategorie:
Business News
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"Noreco divests South Arne"
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