Re-opening of the Siri filed boosting Noreco's production

NORWAY: Noreco's oil and gas production in January 2010 was 7,050 barrels of oil equivalents (boe) per day. Net realized oil price in January was USD 69 per boe after adjustments for oil put options, inventory and NGL and gas prices.

The Siri field was restarted on 24 January after having been shut down since 31 August last year. Subsequently the satellite field Nini was brought back on stream late January. Production volumes have climbed rapidly, and the combined production from the two fields is currently around 20,000 boe per day, compared around 13,500 boe per day prior to the shutdown, including the Cecilie field. The higher production levels are caused by flush production from the re-pressurized reservoirs and a new well on the Nini field.

The ramp up of production in the Siri area is expected to continue through February as the remaining wells on Nini and the Cecilie and Nini East fields are started up.

Brage had good regularity and production was steady at around 35,300 boe per day. The next production well has been completed and is expected to be brought on stream in February.

South Arne produced 19,300 boe per day, slightly down from December as preparations for the next drilling campaign caused three days of shutdown. Drilling of two new production wells will commence in February.

Lulita was shut down throughout January. Production at the field resumed 2 February.

The production volumes and prices are preliminary and are subject to adjustments, including final allocations between fields, quality adjustments and prices.