September production
(Thomson Reuters ONE) - Stavanger, 7 October, 2009: Norwegian Energy Company ASA (Noreco -OSE:NOR), Noreco's production in September 2009 was 6,625 barrels ofoil equivalents per day, and production in the third quarter was9,725 barrels of oil per day. Production is expected to increasesignificantly in the fourth quarter as new wells start up on Nini andBrage, the new field Nini East starts production and the Siri andLulita fields are brought back on stream.On Brage the production has been high in September primarily due togood response from pressure support on the A-28 Bowmore producer andhigh gas export. The field production has been exceeding 38,000 boepdin average in September, up 28 % from August. Drilling of a newproducer to the Fensfjord Fm has been finalized, and the well is nowbeing completed and will start production in October. The Enoch fieldhas produced higher than expectation in September caused primarily byvery good production regularity.The South Arne field has produced in accordance with expectations forSeptember after successful completion of additional well workoveroperations. The average production rate was approximately 22,500boepd in September.The Lulita field remained shut-in during September as part of theplanned maintenance campaign at the Harald field. Lulita is expectedback on production in the middle of October.The Nini East field is scheduled to start production in the fourthquarter of 2009, and the first of two planned producers is currentlydrilling in the reservoir and will be completed in October.The production from the Siri area fields (Siri, Nini, Cecilie) hasbeen shut in during September due to the Siri platform shutdown. TheSiri platform was shut down on 31 August as a routine inspectionrevealed cracks in steel plates on a subsea water buffer tankconnected to the main storage tank. No discharge of oil or otherpollution has been detected as a result of the cracks. Throughextensive inspection and analysis of the Siri facilities a goodunderstanding of the cause and impact of the cracks has beendeveloped. Based on this understanding a plan has been established torestart production from the Siri, Nini and Cecilie field. The planincludes support from a jack-up rig for a limited period andfabrication and installation of some additional equipment on Siri.Noreco expects production to restart in the first half of November,with timing dependening mainly on operational risk related tofabrication and installation of additional equipment on Siri andweather conditions.Prior to the production shutdown at Siri, the field was producing10,000 barrels per day gross, while the total production over theSiri platform was in the order of 13,500 barrels per day gross. Theshutdown is not expected to have any adverse effect on the reservoiror field reserves and Noreco expects an initial production from theSiri area fields in the period after production startup to be at orabove the rate at the time the field was shutdown.Under its group energy insurance package Noreco has cover for interalia business interruption, subject to a retention period of 60 daysand an overall limit of 12 months. Thus, provided there is found tobe cover under its policy Noreco will for any period of resultingproduction loss in excess of 60 days receive an insurance payment ofUSD 50 per barrel of crude not produced. In addition, the businessinterruption cover also provides coverage for costs associated withacts aimed at mitigating a production loss, such astemporary/provisional measures to restart production. The lossadjuster is currently processing the claim. Although Noreco ishopeful of cover, it is at this stage premature to attempt to drawany definite conclusion until the investigations into the cause ofthe damage has been completed.As a consequence of the temporary shut down at Siri, Noreco will asper previous releases reduce the production guidance for 2009. Arevision will be made when the exact timing of the start-up of theSiri field is known.The net realized price was 61 US$/barrel in September and64US$/barrel in Q3 2009, and reflects Noreco's oil price put optionsat US$50 and US$75 per barrel as well as adjustments for inventoryand NGL and gas prices. The production volumes and prices arepreliminary and are subject to adjustments, including finalallocations between fields, quality adjustments and prices.Contacts:Scott Kerr ,CEO (+47 99 28 38 90)Einar Gjelsvik, Vice President Strategy & Investor Relations (+47 9928 38 56)Jan Nagell, CFO (+47 99 49 72 71)This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 07.10.2009 - 09:38 Uhr
Sprache: Deutsch
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