Noreco Q2 2015 results

New strategy

Norwegian Energy Company ASA group and the subsidiary Noreco Norway AS today announces results for the second quarter 2015. Further to the financial restructuring achieved, Noreco and Noreco Norway are now fully focused on implementing the renewed strategy.

Noreco has taken proactive steps to deliver on its renewed strategy and is fully focused to limit future investment commitments, continue implementing cost saving measures, optimise the value of assets and reduce debt for the benefit of all its stakeholders.

At the end of the second quarter, Noreco Norway has entered into an agreement to sell the Oselvar licences for NOK 201 million and Noreco has exited the Nini and Cecilie licences. These milestones allowed Noreco to complete a NOK 250 million partial repayment of debt and interest in the NOR10 bond in August, and similarly will prompt a partial repayment of the NOR06 bond when the disposal of Oselvar has been concluded.

Noreco participated in three exploration wells in the second quarter. The Haribo well on the Norwegian shelf and the Niobe well in the UK have been declared dry. Hydrocarbons were discovered in the Xana well in the Danish sector, and the discovery is currently being evaluated.

Average daily production in the second quarter was 4 894 boe/d, including Oselvar. Revenues were NOK 193 million. Loss before tax for the quarter was NOK 395 million after exploration cost of NOK 151 million and non-cash expenses of NOK 277 million related to revaluation of the bonds.

For further information, please see attached interim financial reports from Norwegian Energy Company ASA and Noreco Norway AS and presentation material which will be referred to during an earnings call at 09.00 CET this morning. The material is also available on www.ose.no and www.noreco.com.

Read the article online at: https://www.oilfieldtechnology.com/special-reports/27082015/noreco-q2-2015-results/