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NORECO STAVANGER, Norway, 19 June 2008: Norwegian Energy Company ASA (OSE:NOR), Noreco has completed the acquisition of all the shares in Talisman Oil Denmark Limited. The transaction includes the producing Siri field in the Danish sector of the North Sea, and will increase Noreco's daily oil production significantly.
- This transaction increases our daily oil production by more than 20%, and improves Noreco's results, balance and cash flow, says Scott Kerr, CEO of Noreco.
On 25 April 2008, Noreco announced the acquisition of Talisman Oil Denmark which was expected to be completed by June 2008, subject to the fulfilment of usual government consents. All conditions have now been fulfilled and the transaction has been formally completed.
Facts about the acquisition Noreco has completed the purchase of all the shares in Talisman Oil Denmark Limited in accordance with the Share Sale Agreement entered into on 25 April 2008 with Paladin Resources Limited (whose ultimate parent company is Talisman Energy Inc.). The acquisition takes effect from 1 January 2008 and is for a consideration of USD 83 million which adjusted for working capital and interest totals USD 94 million.
Following completion, Noreco will have added two new UK registered companies to its corporate group structure, namely Talisman Oil Denmark Limited (under change of name to Siri (UK) Limited) and a newly incorporated company, Siri Holding Limited, a wholly owned affiliate of Noreco used to acquire the direct shareholding in Talisman Oil Denmark Limited. An updated group structure diagram is attached.
Talisman Oil Denmark Limited's interest in the Danish sector of the North Sea includes the entire 30% non-operated interest in License 6/95, which contains the producing Siri field. Noreco owns a 20% interest in the Siri field, and will after the transaction hold a 50% share in the field.
Facts about the Siri field The Siri field is located in the Danish part of the North Sea, and started production in 1999. Dong is the operator and holds a 50% share in the field. The Siri platform is an integrated production and accommodation platform placed on top of an oil storage tank resting on the seabed at a water depth of approximately 65 meters. The oil is produced to the seabed storage tank and via a floating loading buoy transported by shuttle tanker to refineries in North West Europe. The reservoir is produced with water injection and limited gas injection to improve oil recovery. The Siri platform is the host for processing and transport of products from the Nini and Cecilie fields. In May 2008, the Siri field produced approximately 12 500 barrels of oil per day. An infill well at the field is being completed now.
The Siri platform is an important hub for other fields and discoveries in the area. Noreco holds significant interests in the area, including the Cecilie, Nini, Nini East and Rau fields, and this transaction will create synergies for Noreco in the area.
For further information, please contact: Scott Kerr, CEO (+47 992 83 890) Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856) www.noreco.com
