Noreco Takes FID on Two Halfdan Infill Wells to Increase Gas Production From 2023

02 Dec 2022 11:45 CET

Oslo, 2 December 2022: Norwegian Energy Company ASA ("Noreco" or the "Company")
is pleased to announce a Final Investment Decision ("FID") on two infill wells,
where the first well is expected to be drilled by the jackup rig Shelf Drilling
Winner in the early spring of 2023.

The two wells will be drilled at the Tor reservoir in the Halfdan North East
area, located in the central part of the Danish North Sea. Both the wells are
expected to increase gas production from the Halfdan field, with plateau
production expected during autumn 2023. The first well alone is expected to have
an initial production rate of 3 mboe/day net to Noreco where approximately 75%
is gas. The expected gain from the infill wells is approximately 2.9mmboe net to
Noreco, of which c. 50% is gas.


The total cost net to Noreco is USD 39 million, implying a total unit
development cost of approximately USD 13 per barrel of oil equivalent. Based on
expected reserves and forward curves of Brent and TTF from November 2022, the
forecast IRR is above 200% with a payback period of c. six months, making the
infill wells highly attractive from an economic and strategic perspective.

"I am delighted to announce this significant milestone for the Danish
Underground Consortium (the "DUC") where we have not had drilling activity since
2019. It has never been a better time to invest in further drilling and field
development activities to ensure that the recovery from the DUC fields is
maximised. Several highly economic opportunities are currently being matured and
this is the first of many investment decisions to be made, in line with Noreco's
objective to maximise gas output in the short-, medium- and long-term," said
Marianne Eide, Chief Operating Officer in Noreco.

This information is subject to disclosure requirements pursuant to section 5-12
of the Norwegian Securities Trading Act.

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

***

About Norwegian Energy Company ASA
Noreco is a publicly owned company with focus on the oil, gas and
offshoreindustry. The Company's shares are listed on the Oslo Stock Exchange
with ticker: "NOR". For further information, please visit: www.noreco.com.

More information:
Access the news on Oslo Bors NewsWeb site