Noreco reports fourth quarter 2011 results

"In the fourth quarter Noreco completed a turnaround which provides the company with a platform for  further value creation. In 2012 the plan is to triple oil production with startup of new fields, and we will execute the most extensive exploration programme in the history of the company," says Einar Gjelsvik, CEO in Noreco.

Noreco had revenues of NOK 193 million from continued operations in fourth quarter 2011, an increase of 13 percent compared to fourth quarter 2010, driven by higher oil prices which more than compensated for slightly lower production volumes.

Production in the quarter was 3,524 barrels of oil equivalents per day (boed), down from 3,624 boed (excluding divested fields) for the corresponding period the previous year. The reduction is mainly due to lower production regularity.

The achieved oil, gas and NGL prices adjusted for the cost and income from the put options expiring in the quarter was USD 107 per boe, compared to USD 84 per boe in fourth quarter 2010.

EBITDA (earnings before interests, tax, depreciation and amortisation) in fourth quarter was NOK 12 million, compared to a negative EBITDA of NOK 270 million in fourth quarter 2010. Noreco's net result for the quarter was a loss of NOK 40 million, compared to a net loss of NOK 182 million in fourth quarter 2010.

At the end of fourth quarter Noreco had cash and cash equivalents of NOK 689 million, in addition to available, undrawn credit under the company's reserve-based bank facility of NOK 737 million.

Noreco was in compliance with all covenants under its loan agreements in the quarter.

The fourth quarter report and presentation are attached. The documents are also available for download at www.newsweb.no and www.noreco.com.

Noreco will present the results for fourth quarter 2011 today at 08:30 CET. The presentation will be held by CEO Einar Gjelsvik, and will take place at Shippingklubben, Haakon VII's gate 1, Oslo. The presentation can also be followed by webcast on Noreco's web page www.noreco.com both live and in archived version.

Contacts:
Einar Gjelsvik, CEO, +47 99 28 38 56
Kjetil Bakken, VP Investor Relations, +47 91 88 98 89