October production
(Thomson Reuters ONE) - Stavanger, 9 November, 2009: Norwegian Energy Company ASA (Noreco -OSE:NOR), Noreco's production in October 2009 was 6,600 barrels ofoil equivalents per day. The October production was significantlyimpacted by the shutdown of the Siri field in Denmark.The Siri area fields (Siri, Nini and Cecilie) have been off linesince the shutdown of the Siri platform on 31 August. The operator,DONG, is currently working on a temporary solution to stabilize theplatform's water buffer tank, where cracks have been observed, andbring the field back on stream. Based on updated information onanalyses and on schedule for manufacturing of the lifting gear, theoperator now expects the production to start in December (previouslyexpected to start in November). The delay does not impact Noreco'sproduction guidance for 2009 of 10,500 - 11,000 barrels per day. Thestart-up is conditional upon approval from certifying andgovernmental bodies and on weather conditions during the installationof the temporary solution. Once a temporary solution is in place,work on a more permanent solution will commence.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.While the restart of production from Siri is being prepared, theMærsk Resolute drilling rig continues to drill Nini East developmentwells as planned. The first producer has been completed with a verypromising production potential. The second well, a water injector, isexpected to be completed in November. Nini East production and waterinjection will be ready for startup when the Siri facilities areavailable in December.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.On the Brage field, the production has been better than expected inOctober, with continued strong performance from the Bowmore well,combined with higher than planned gas export. The Brage Fensfjordwell was completed and put on stream on 5th of October. The well hasproduced at rates up to 5,000 barrels oil equivalents per day (boed)gross in October. The Brage field was producing at rates exceeding39,000 boed gross at the end of October. The drilling of the nextinfill well has now started, and is expected to start production inQ2 2010.The South Arne field produced 25,000 boed in October. The increasedproduction level is a result of several successful well workovers in2009.The Lulita field was shut down in October. Several operationalproblems related to restart of the Harald facilities have beenexperienced and these have delayed start-up of production. Restart ofproduction is expected shortly.The net realized price was USD 72 per barrel in October, and reflectsNoreco's oil price put options at USD 50 and USD 75 per barrel aswell as adjustments for inventory and NGL and gas prices. Theproduction volumes and prices are preliminary and are subject toadjustments, including final allocations between fields, qualityadjustments and prices.Contacts:Scott Kerr , CEO (+47 99 28 38 90)Einar Gjelsvik, Vice President Strategy & Investor Relations (+47 9928 38 56)This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 09.11.2009 - 08:57 Uhr
Sprache: Deutsch
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