25.01.2010 08:56:06 CET

North Energy - Initial Public Offering

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)


(Oslo/Alta, Norway, 25 January 2010) North Energy ASA, an exploration and production company in northern Norway, today announced the subscription period for its initial public offering.
In the extraordinary general meeting of North Energy ASA ("North Energy" or the "Company") held on 21 January 2010, it was resolved to offer minimum 7,142,000 and maximum 14,000,000 shares in the Company through an initial public offering (the "Offering") to be completed in connection with the listing of the Company`s shares on Oslo Axess (the "Listing").

An indicative offer price range has been set at NOK 25 to NOK 33 per offer share. The book-building and application period will run from and including 25 January to 17:30 hours (CET) on 3 February 2010.

Subject to completion of the Offering, gross proceeds from the Offering will amount to up to NOK 350 million and will provide North Energy with sufficient equity to carry out its ambitious drilling program of eight wells by 2012.

The first day of trading on Oslo Axess is expected to be 5 February 2010, subject to the Company fulfilling the conditions for the Listing on Oslo Axess as set out in the resolution made by Oslo Børs in its board meeting to be held on 28 January 2010.

The offering will comprise an institutional tranche directed towards Norwegian and international professional and institutional investors, and a retail tranche directed towards retail investors in Norway. The Offering will also include an employee offering, where the employees of the Company are given the opportunity to subscribe for 200 Offer Shares at a 20% discount.

In addition, the Company will issue up to 2,000,000 consideration shares in connection with its acquisition of 4 sea energy AS which will be completed as soon a possible following the Offering, being shares with an aggregate value of NOK 50 million based on the offer price in the Offering,. The Company will also issue up to 1,400,520 shares subject to exercise of previously issued subscription rights. The subscription price for these rights will be at a 20 % discount to the price set in the Offering.

Following completion of the Offering, key members of North Energy's senior management  may during a 14 calendar day period exercise options to subscribe for a number of shares corresponding to up to a 5.5 % ownership post-offering. The strike prices for these options are between NOK 15 and NOK 25 per share.

"Through the initial pre-marketing we have enjoyed encouraging interest in our company and our license portfolio from leading institutional investors. The APA 2009 license award has confirmed the quality of North Energy's exploration team as well as North Energy's ability to secure attractive licenses alongside established E&P companies. Becoming a publicly listed company adds a new dimension to North Energy and the equity offering gives us the financial position to carry out our ambitious drilling program and evaluate other business opportunities," says Erik Karlstrøm, CEO North Energy.

RS Platou AS, SEB Enskilda AS and Pareto Securities AS are acting as Joint Lead Managers in the Offering and Listing on Oslo Axess.
SpareBank 1 Nord-Norge Securities ASA and Argo Securities AS are acting as Co-managers in the Retail Offering.

An offering prospectus is available at the Company's, the Joint Lead Managers' and the Co-managers' addresses:
North Energy ASA
Kunnskapsparken, Markedsgata 3, N-9504 Alta, Norway
Telephone: +47 78 60 79 50
Telefax: +47 78 60 83 50

RS Platou Markets AS
Facsimile: +47 22 01 63 54
Telephone: +47 22 01 63 00

SEB Enskilda AS
Facsimile: +47 21 00 89 62
Telephone: +47 21 00 85 00

Pareto Securities AS
Facsimile: +47 22 87 87 15
Telephone: +47 22 87 87 00

SpareBank 1 Nord-Norge Securities
Facsimile: +47 77 62 20 86
Telephone: (+47 915) 02244

Argo Securities AS
Facsimile: +47 24 14 74 01
Telephone: +47 24 14 74 00

Important Notice
The contents of this announcement have been prepared by and are the sole responsibility of North Energy ASA ("North Energy"). The Managers and Co-Managers are acting exclusively for North Energy and no one else and will not be responsible to anyone other than North Energy for providing the protections afforded to their respective clients, or for advice in relation to the contemplated offering, the contents of this announcement or any of the matters referred to herein.

The distribution of this announcement and other information in connection with the offering may be restricted by law in certain jurisdictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions. This announcement may not be used for, or in connection with, and does not constitute, any offer to sell, or an invitation to purchase, any securities. The offering will not be made in any jurisdiction or in any circumstances in which such offer or solicitation would be unlawful.

The new shares offered in the offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, the shares will not be offered or sold in or into the United States. The shares have not been and will not be registered under the applicable securities laws of Australia, Canada or Japan and may not be offered or sold within Australia, Canada or Japan.

All investment is subject to risk. The value of North Energy shares may go down as well as up. Past performance is no guarantee of future returns. Potential investors are advised to seek expert financial advice before making any investment decision.

For information, please contact:
Erik Karlstrøm, CEO, + 47 47 65 29 90
Knut Sæberg, CFO, + 47 91 80 07 20

About North Energy
North Energy is an Exploration and Production company headquartered in Alta, Finnmark, Norway. The company holds ownership in a total of 13 licenses, subject to completion of the acquisition of 4 sea energy, of which 6 are in the Barents Sea, 5 in the Norwegian Sea and 2 in the North Sea basin. In the APA 2009, North Energy was allocated ownership in three licenses, two in the Barents Sea and one in the Norwegian Sea. North Energy was pre-qualified as operator in Norway in March 2009.

The company is focusing on exploration in northern parts of the Norwegian continental shelf and is active in the discussions regarding the opening of Lofoten and Vesterålen, the most attractive untouched exploration acreage in Norway.

North Energy has 38 employees and has offices in Alta and Oslo.

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