Stavanger, 9 November, 2009: Norwegian Energy Company ASA (Noreco -
OSE:NOR), Noreco's production in October 2009 was 6,600 barrels of
oil equivalents per day. The October production was significantly
impacted by the shutdown of the Siri field in Denmark.
The Siri area fields (Siri, Nini and Cecilie) have been off line
since the shutdown of the Siri platform on 31 August. The operator,
DONG, is currently working on a temporary solution to stabilize the
platform's water buffer tank, where cracks have been observed, and
bring the field back on stream. Based on updated information on
analyses and on schedule for manufacturing of the lifting gear, the
operator now expects the production to start in December (previously
expected to start in November). The delay does not impact Noreco's
production guidance for 2009 of 10,500 - 11,000 barrels per day. The
start-up is conditional upon approval from certifying and
governmental bodies and on weather conditions during the installation
of the temporary solution. Once a temporary solution is in place,
work on a more permanent solution will commence.

Prior to the production shutdown at Siri, the field was producing
10,000 barrels per day gross, while the total production over the
Siri platform was in the order of 13,500 barrels per day gross. The
shutdown is not expected to have any adverse effect on the reservoir
or field reserves.

While the restart of production from Siri is being prepared, the
Mærsk Resolute drilling rig continues to drill Nini East development
wells as planned. The first producer has been completed with a very
promising production potential. The second well, a water injector, is
expected to be completed in November. Nini East production and water
injection will be ready for startup when the Siri facilities are
available in December.

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.

On the Brage field, the production has been better than expected in
October, with continued strong performance from the Bowmore well,
combined with higher than planned gas export. The Brage Fensfjord
well was completed and put on stream on 5th of October. The well has
produced at rates up to 5,000 barrels oil equivalents per day (boed)
gross in October. The Brage field was producing at rates exceeding
39,000 boed gross at the end of October. The drilling of the next
infill well has now started, and is expected to start production in
Q2 2010.

The South Arne field produced 25,000 boed in October. The increased
production level is a result of several successful well workovers in
2009.

The Lulita field was shut down in October. Several operational
problems related to restart of the Harald facilities have been
experienced and these have delayed start-up of production. Restart of
production is expected shortly.

The net realized price was USD 72 per barrel in October, and reflects
Noreco's oil price put options at USD 50 and USD 75 per barrel as
well as adjustments 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, Vice President Strategy & Investor Relations (+47 99
28 38 56)


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