Norwegian Energy Company ASA (Noreco) provides an update of its ongoing drilling program, where two wells have been completed and three new wells are underway. The new wells will significantly increase Noreco's production through the rest of 2009.

Brage On the Brage field in Norway, the drilling of the Brage A-22A well has been successfully completed as an ultra long reach water injection well to the Bowmore structure. The Bowmore well is still producing at high rates and will be further strengthened with water injection in well A-22A. The full year drilling program on Brage now continues with drilling of the first of two additional infill producers. The first well is expected to start production in October 2009. Noreco has a 12% ownership in Brage.

Nini and Nini East On the Nini field in Denmark, the drilling and completion of the water injection well NA-9 was completed in July. The well is currently shut-in waiting for commissioning of the Nini water injection pipeline. The Nini producer NA-10 was successfully completed in August, and will be brought on stream within the next few days. Following completion of the Nini drilling program, the rig Mærsk Resolute has moved to Nini East where it has started drilling development wells. Nini East is scheduled to start production in Q4 2009. Noreco has a 30% interest in Nini and Nini East.

Tasta Exploration drilling on the Tasta prospect in Norway, where Noreco owns 40% and is the operator, starts today. Results are expected in October.

2009 production Based year to date production performance and the forecast for the rest of 2009, Noreco's estimate for the 2009 average daily production is revised to between 13,000 - 13,500 barrels of oil equivalent per day. This represents a c.5% reduction of previous guiding at 14,000 barrel of oil equivalents per day. The reduction in forecast is mainly caused by delays in the drilling program on the Nini field, resulting in delayed delivery of Nini production and injection wells, as well as delay to the Nini East drilling program. The lower forecast for 2009 represents a deferral of production into 2010 related to timing of start up of wells and not a loss of reserves. The new wells on Nini, Nini East and Brage will significantly increase Noreco's production through the rest of 2009 and into 2010.

Tags: Norwegian Energy Company ASA