Noreco to Sell Stake in Flyndre Discovery

- Noreco to Sell Stake in Flyndre Discovery

Monday, August 22, 2011
Norwegian Energy Co. ASA

Norwegian Energy Company (Noreco) has entered an agreement to sell its share of the Flyndre Paleocene discovery to Maersk Oil for a consideration of NOK 19 million.

Flyndre Paleocene is a cross border discovery operated by Maersk Oil, of which the Norwegian part is located in license PL018C where Noreco holds a 13.338 percent interest.

Noreco's estimated share of proved and probable reserves in this discovery is 0.4 million barrels of oil equivalents. The license also contains a discovery in the Cretaceous formation which will be carved out and retained by Noreco.

The Flyndre sale is expected to have a positive accounting effect of approximately NOK 10 million after tax. The transaction and carve out of the Cretaceous formation as a separate production license are subject to approval by Norwegian authorities.

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Noreco Names New CEO

- Noreco Names New CEO

Wednesday, June 22, 2011
Norwegian Energy Co. ASA

Noreco (Norwegian Energy Co.) announced that Mr. Einar Gjelsvik has been appointed as Chief Executive Officer (CEO) of the company.

Einar Gjelsvik (38) has been with Noreco since 2006, and has served as Acting CEO for the last three months. He has previously held positions as Chief Operating Officer and Vice President Strategy and Investor Relations. Before he joined Noreco, Gjelsvik held various positions in BP. Gjelsvik holds a MSc in Business Administration & Strategic Management, and a MSc in Chemical Engineering.

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Noreco In Dispute with Dong over $400MM Rig Repairs

- Noreco In Dispute with Dong over $400MM Rig Repairs

Wednesday, June 15, 2011
Dow Jones Newswires
by Katarina Gustafsson

Norwegian Energy Co., known as Noreco, said Wednesday it is in dispute with Danish power firm Dong Energy over a DKK2 billion ($400 million) repair bill for a jointly owned oil rig in the Danish North Sea.

Noreco said it won't participate in, nor finance, the project proposed by Dong.

"Dong sent out (a press release) without informing us," Noreco spokesman Jan Petter Stiff said.

"We are not obliged to participate."

Noreco says their license agreement with Dong requires Noreco's consent for projects of this kind. Dong's solution to the damaged rig is "technically immature," it said.

The Norwegian firm said it has an alternative solution for the rig and will be talking to Dong about the matter.

Noreco and Dong each have a 50% ownership of the rig in the Siri license area of the North Sea, with Dong as the operator. Oil production was halted there in August 2009 after cracks were discovered in part of the sub-sea structure. Production resumed in January 2010 after temporary safety measures were put in place.

Dong said in a statement earlier Wednesday that it would make full and permanent repairs to the platform and estimated the costs at DKK2 billion. The firm said the work should be completed in 2012.

An Oslo-based analyst noted Noreco is short of cash after posting a NOK295 million ($54 million) net loss for the first quarter. As its share price plummeted, the company was forced to reassure markets last week that it has enough working cash to keep afloat.

"There is a large risk of an equity issue. They don't have a lot of money," the analyst said.

Dong Energy wasn't immediately able to comment.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Noreco Picks Up NCS Licenses

Noreco Picks Up NCS Licenses

Friday, April 15, 2011
Norwegian Energy Co. ASA

Norwegian Energy Company (Noreco) has been offered two licenses in the 21st licensing round on the Norwegian continental shelf.

"This license round has opened up for very interesting new opportunities in the Barents Sea and the Norwegian Sea, and has attracted a lot of interest from the industry. We are very pleased to see that Noreco was awarded two of its prioritized targets," said Einar Gjelsvik, CEO in Noreco.

Noreco has been offered a 40 percent interest in license PL606 which is located in the Barents Sea. OMV will be operator for the license.

The company has also been offered a 20 percent interest in license PL599, which is located in a part of the Norwegian Sea where Noreco already has a strong acreage position. This license will be operated by BG Norge.