2009-12-07 12:24:41 -

London, December , 07, 2009

Stavanger 7 December 2009 Norwegian Energy Company ASA (Noreco -
OSE:NOR), Noreco's production in November 2009 was 6,250 barrels of
oil equivalents per day. Production was still affected by the
shutdown of the Siri field in Denmark.

The Siri area fields (Siri, Nini and Cecilie) have been shut down
since 31 August. The operator DONG is currently working on a
temporary solution to stabilize the platform's water buffer tank and
still expects to bring the field back on stream during December,
conditional upon approval from certifying and governmental bodies and
on weather conditions. Once a temporary solution is in place, work on
a more permanent solution will commence. The shutdown is not expected
to have any adverse effect on the reservoir or field reserves.

The Nini East development is progressing as planned, and the third
and final well is currently being drilled. Nini East is a tie-back
development to Siri, and production is expected to start shortly
after the Siri field is back on stream.

Under its group energy insurance package Noreco has cover for inter
alia business interruption, subject to a retention period of 60 days
and an overall limit of 12 months. Thus, provided there is found to
be cover under its policy Noreco will for any period of resulting
production loss in excess of 60 days receive an insurance payment of
USD 50 per barrel of crude not produced. In addition, the business
interruption cover also provides coverage for costs associated with
acts aimed at mitigating a production loss, such as
temporary/provisional measures to restart production. The loss
adjuster is currently processing the claim. Although Noreco is
hopeful of cover, it is at this stage premature to attempt to draw
any definite conclusion until the investigations into the cause of
the damage has been completed.

Brage production was high and stable in November with an monthly
average of 36,400 boed gross. The Brage Bowmore well is still the
dominant oil producer at Brage and continues to perform favourably
with low water cut and Gas-Oil-Ratio. Drilling of the next infill
producer at Brage is ongoing and is expected to be completed in Q2
2010.

The South Arne field produced 22,000 boed gross in November. The
production is slightly down from October, mainly due to ongoing
workover operations. Drilling of two new infill wells is expected to
commence in Q1 2010, and both wells are expected to be put on stream
in Q3 2010.

The Lulita field continued to be shut down in November. Due to
ongoing repairs of a gas compressor on the Harald platform, restart
of production from Lulita is expected during first quarter 2010.

The net realized price was USD 71 per barrel in November, after
deduction for the cost of Noreco's oil price put options at USD 50
and USD 75 per barrel and adjusted for inventory and NGL and gas
prices.

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


Contacts:
Scott Kerr , CEO (+47 99 28 38 90)
Einar Gjelsvik, VP Strategy & IR (+47 99 28 38 56)


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.