Drilling result of Yoda well


Stavanger, 30 April, 2008: Norwegian Energy Company ASA (Noreco, OSE:NOR), StatoilHydro, operator of production licence 271 and 302 in Norway, has concluded the drilling of exploration well 7/1-2, on the Yoda Prospect.

The well did not encounter hydrocarbons. The Yoda well was part of Noreco's extensive exploration program with over 30 wells over 3 years. The well tested a risked volume of 1 million barrels oil equivalents of Noreco's total 375 million barrels of risked exploration resources. Pursuant to a carry agreement with Faroe Petroleum, Noreco did not incur any costs associated with the well.
Facts about well 7/1-2 Yoda
The objective of well 7/1-2 was to evaluate the potential for hydrocarbons in rocks of Jurassic age in a prospect called Yoda. The prospect is located on Jæren High, approximately 18 km South East of the Varg Field. The exploration well 7/1-2 was drilled to a vertical depth of 3115 m below sea level and was completed in rocks of Triassic age. The well proved to be dry. A series of logs were run and data collection and sampling were performed. The well gives valuable information about the area, and an evaluation of the implication of the well results on the resource potential will be carried out over the coming months. Production licence 271 was awarded in the North Sea Round 2002, and PL 302 in the APA 2003. This is the second commitment exploration well in the block. The well 7/1-2 was drilled with the jackup drilling rig Mærsk Giant at a water depth of 87 meters. The rig was operated by Talisman on behalf of StatoilHydro. The well will be permanently plugged and abandoned, and the rig will move on to drill for Talisman on the Varg Field.
Noreco acquired a 40% in licenses PL271 and PL302 from Dong in 2006, and subsequently sold 10% against 17.5% interest in PL347 and PL348 in the Norwegian Sea. In February this year, Noreco sold 15% of its interest in licenses PL271 and PL302 against a full carry of Noreco's part of the costs associated with the Yoda well. Noreco's pre-drill estimate for the prospect was 23 million barrels gross with a 17% chance of success.
The licensees in production licence 271 and 302 are:
StatoilHydro Petroleum AS (Operator)                  40%
Talisman Energy Norge AS                                   30%
Noreco                                                                  15%
Faroe Petroleum                                                   15%
For further information, please contact:
Scott Kerr, CEO (+47 992 83 890)
Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856)