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NORCEN WINS DEVELOPMENT CONTRACT IN VENEZUELA

 CALGARY, Alberta, Nov. 3 /PRNewswire/ -- Norcen Energy Resources Ltd. announced today the participation of its wholly owned subsidiary, Norcen International Ltd., in a winning bid in Venezuela's Second Marginal Round. The consortium in which Norcen is a member has been awarded a 20-year operating services contract to maximize production on the Oritupano-Leona concession, located in the northeast region of Venezuela.
 Remaining proven and probable oil reserves on the unit are estimated to be in the range of 134 million barrels. The property also offers considerable additional development potential. At the present time, only 63 of the 318 productive wells in the unit are in operation, producing approximately 9,000 barrels of oil per day. Norcen's share is approximately 4,000 barrels per day.
 The consortium's initial three year work program carries a capital commitment of U.S. $150 million. During this period, the primary focus will be on production enhancement from existing reserves. Activity will concentrate on workover and repair of existing wells, the installation of additional production facilities, and development drilling. These activities should result in a production increase from the concession of some 15,000 barrels per day in the next three years.
 The consortium will earn an operating fee per barrel produced. Capital expenditures plus interest will be recovered over a 10-year period, on a straight-line basis. The contract is expected to become operational effective during the first quarter of 1994.
 The consortium partners are Norcen (45 percent), Compania Naviera Perez Companc S.A. (45 percent), and Servicios Corod de Venezuela S.A. (10 percent).
 -0- 11/3/93
 /CONTACT: Ron Burrows, manager, Investor Relations of Norcen Energy Resources, 403-231-0107/
 (NCN.)


CO: Norcen Energy Resources Ltd. ST: Alberta IN: OIL SU: CON

JB-MF -- LA041 -- 0270 11/03/93 15:50 EST
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Publication:PR Newswire
Date:Nov 3, 1993
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