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Core Energy acquires two field interests on the NCS

Core Energy AS (Core Energy) today announces that it has entered into agreements to acquire a 12% interest in the producing Njord field from GDF SUEZ E&P Norge AS and a 20% interest in the Bøyla development project from ConocoPhillips Skandinavia AS. Both transactions are effective as of 1st January 2013, and subject to customary approvals by the Norwegian authorities.

Core Energy’s CEO Jan Harald Solstad commented: “The acquisition of the Njord and Bøyla interests doubles our 2P reserves to more than 30 million boe, and takes the daily production from our portfolio to circa 10,000 boe in 2013, and up to around 15,000 boe in 2015. The Njord acquisition aligns our interests with our Hyme field and significantly strengthens Core Energy’s position in this important area to us. With the Bøyla acquisition, we enter into a new area where we see potential for significant value creation within our mature area strategy. These transactions represent a major step forward in the development of Core Energy as a financially robust and diversified E&P company. We look forward to working closely with the operators and the other field partners on Njord and Bøyla to identify and capture further value.”

Njord is an oil and gas field located in licenses PL 107 and PL 132 in the Norwegian Sea. Njord is operated by Statoil, and was developed in 1997 with a semi-submersible drilling, accommodation and production facility and a storage vessel. Njord is the host platform for the Hyme field in PL 348, where Core Energy holds a 17.5% interest. Core Energy’s acquisition from GDF SUEZ E&P Norge AS also includes a 12% interest in the adjacent Noatun gas discovery and a minor share in the Polarled pipeline project.

Bøyla is a development project in PL 340, operated by Marathon Oil Norge AS. The Plan of Development and Operation (PDO) was approved in October 2012, and first oil is expected Q4 2014. The total investment in the field development is estimated to be 4.9 billion NOK. Bøyla is situated about 28 km south of the Alvheim field in the central North Sea. Bøyla will be developed as a subsea tie-back to the Alvheim production vessel (FPSO).