Norwegian Energy Company (Noreco) increased its oil and gas reserves by over 7.5 million barrels of oil equivalents in 2008, giving a reserve replacement ratio of 145%.

“We had a very successful drilling campaign in 2008, made significant advances on our discoveries and continued to acquire reserves. This will lead to continued production growth for the company,” commented Noreco CEO, Scott Kerr.

As part of the company's reserve verification process, Noreco has received reports from the independent, third party reserve auditor, DeGolyer and MacNaughton. The reports shows that Noreco's proven and probable (2P) reserves as of 1 January 2009 are 33 million barrels of oil equivalents (boe), compared to 31 million boe as of 1 January 2008.

In 2008, Noreco produced 5.2 million boe and added 7.5 million boe new reserves through both organic growth and acquisitions. The DeGolyer and MacNaughton reserve verification report covers the Norwegian fields Brage and Enoch and the Danish fields Siri, Nini, Nini East, Cecilie, Lulita and South Arne.

The 33 million boe 2P reserves, however, does not include any contribution from other fields and discoveries in the portfolio such as Huntington, Oselvar, Ipswich, Nemo, Galtvort, Amalie, Rau, Flyndre and South East Tor.

As of 1 January 2008 Noreco's total contingent resources in existing discoveries were estimated to be 102 million boe. According to Noreco's procedures, reserves from discoveries will be verified and included in the company's 2P reserves about the time a plan of development is approved.

The reserve numbers are preliminary and hence can be subject to adjustments. Final reserve numbers and further details will be reported in Noreco's annual reserve statement in conjunction with the annual report for 2008. This statement will also include a detailed review of reserves, contingent resources and management's discussion and analysis.

Tags: Norwegian Energy Company ASA