Noreco acquires Talisman Oil Denmark

Norwegian Energy Company ASA (OSE:NOR), Noreco has entered into a Share Sale Agreement with Paladin Resources Limited (whose ultimate parent company is Talisman Energy Inc) to acquire all the shares in Talisman Oil Denmark Limited for a consideration of USD 83 million. The transaction includes the producing Siri field in the Danish sector of the North Sea, and will increase Noreco’s daily production by more than 20% and add 4.35 million barrels of oil to the company’s proven and probable (2P) reserves.

“This transaction is another demonstration of our strategic intent to build a leading independent oil and gas company in the North Sea. We see significant upside in the Siri field, and have plans for further consolidation in the North Sea. The acquisition will also strengthen the company’s cash flow and balance sheet”, says Scott Kerr, CEO of Noreco.

Talisman Oil Denmark Limited’s interest in the Danish sector of the North Sea includes the entire 30% non-operated interest in License 6/95, which contains the producing Siri field. Noreco owns a 20% interest in the Siri field, and will after the transaction will hold a 50% share in the field. The Siri platform is an important hub for other fields and discoveries in the area. Noreco holds significant interests in the area, including the Cecilie, Nini, Nini East and Rau fields, and this transaction will create synergies for Noreco in the area.

The effective date of the transaction is 1st January 2008, and the completion of the acquisition is expected to take place by June 2008, and will be subject to the fulfilment of usual government consents.