Noreco: Third Quarter 2022 Trading Update

OSLO, Norway, Sept. 6, 2022 /PRNewswire/ -- Norwegian Energy Company ASA ("Noreco" or the "Company") today announced preliminary production for July and August 2022 of 27.3 thousand barrels of oil equivalent per day (mboepd) as well as the attached Operations and Corporate Update presentation.

The strong production performance has been driven by the successful Halfdan well restimulation campaign ("HCA restimulation") carried out this summer.  This, combined with strong performance across the portfolio, delivered approximately 2 mboepd of additional gas volumes and increased Noreco's gas weighting from c. 20 percent to c. 26 percent of total production. The HCA restimulation is expected to have a positive effect until H2 2024. 

With the planned maintenance shut-in of the NOGAT pipeline taking place in September 2022, as announced in the Q2 results, the Company now expects production for H2 2022 as follows:

The Company's three producing hubs have year to date delivered strong production and operating efficiency, and the assets' potential has been further demonstrated by the positive effects of the Gorm scale squeeze and the HCA restimulation. As a result, both the Operator and Noreco have revised their production outlook and this is expected to have a significant impact on the Company's cash generation.

With the unprecedented developments in the European gas market, Noreco has also during Q3 put in place a total of 450,000 MWh of additional gas hedges for Winter 22/23, Summer 23 and Winter 23/24, further securing favourable prices in the future.    

"The success of the HCA restimulation campaign demonstrates the potential of our existing production base, where increased operational activity is delivering material results.  This positive outcome has enabled us to increase our production guidance for the second time during 2022.  The addition of valuable gas production during Q3 has driven strong cash generation to date, and the revised forecasts we have published today show a significant enhancement of our pre-Tyra cashflow profile.  The DUC operator continues to mature further planned workover activity, and we look forward to this continuing to deliver into 2023 and beyond" said Euan Shirlaw, Chief Executive Officer in Noreco.

Further details can be found in the attached document which will also be made available at the Company's website www.noreco.com.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. The stock exchange announcement was published by Cathrine Torgersen, Executive Vice President Investor Relations & ESG, Norwegian Energy Company ASA, at the date and time as set out above.

Contact:

Cathrine Torgersen, EVP Investor Relations & ESG
Phone: +47 915 28 501
Email: ct@noreco.com

Forward-Looking Statements

This announcement includes forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "strategy", "intends", "estimate", "will", "may", "continue", "should" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. 

Actual events may differ significantly from any anticipated development due to a number of factors. Risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such
forward-looking statements. The Company does not provide any guarantees that the assumptions underlying the forward-looking statements in this announcement are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this announcement or any obligation to update or revise the statements in this announcement to reflect subsequent events. You should not place undue reliance on the forward-looking statements in this document.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice. The Company undertakes no obligation to review, update, confirm, or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.

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