November production
(Thomson Reuters ONE) - Stavanger 7 December 2009 Norwegian Energy Company ASA (Noreco -OSE:NOR), Noreco's production in November 2009 was 6,250 barrels ofoil equivalents per day. Production was still affected by theshutdown of the Siri field in Denmark.The Siri area fields (Siri, Nini and Cecilie) have been shut downsince 31 August. The operator DONG is currently working on atemporary solution to stabilize the platform's water buffer tank andstill expects to bring the field back on stream during December,conditional upon approval from certifying and governmental bodies andon weather conditions. Once a temporary solution is in place, work ona more permanent solution will commence. The shutdown is not expectedto have any adverse effect on the reservoir or field reserves.The Nini East development is progressing as planned, and the thirdand final well is currently being drilled. Nini East is a tie-backdevelopment to Siri, and production is expected to start shortlyafter the Siri field is back on stream.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.Brage production was high and stable in November with an monthlyaverage of 36,400 boed gross. The Brage Bowmore well is still thedominant oil producer at Brage and continues to perform favourablywith low water cut and Gas-Oil-Ratio. Drilling of the next infillproducer at Brage is ongoing and is expected to be completed in Q22010.The South Arne field produced 22,000 boed gross in November. Theproduction is slightly down from October, mainly due to ongoingworkover operations. Drilling of two new infill wells is expected tocommence in Q1 2010, and both wells are expected to be put on streamin Q3 2010.The Lulita field continued to be shut down in November. Due toongoing repairs of a gas compressor on the Harald platform, restartof production from Lulita is expected during first quarter 2010.The net realized price was USD 71 per barrel in November, afterdeduction for the cost of Noreco's oil price put options at USD 50and USD 75 per barrel and adjusted for inventory and NGL and gasprices.The production 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, VP Strategy & IR (+47 99 28 38 56)This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 07.12.2009 - 12:16 Uhr
Sprache: Deutsch
News-ID 9336
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