04.02.2010 14:33:00 CET

North Energy - Successful Initial Public Offering


(Oslo/Alta, Norway, 4 February 2010) North Energy ASA ("North Energy" or the "Company", an exploration and production company in northern Norway, today announced the successful completion of its Initial Public Offering (the "Offering"). First day of trading on Oslo Axess is expected to be 5 February 2010.

The Board of Directors of North Energy has on Thursday 4 February 2010 resolved to issue 12,086,899 new shares at a price of NOK 26.50 per share. There was a strong demand from international as well as Norwegian institutional investors and the Offering was oversubscribed.

Gross proceeds from the Offering amount to NOK 320 million. In addition the Company will receive NOK 30 million in gross proceeds from exercise of subscription rights. Hence, in total the Company will have raised gross proceeds NOK 350 million.

Together with the acquisition of 4 sea energy AS, the Company has raised a total of NOK 400 million in new equity capital.

About 95 per cent of the Offer Shares are allotted to institutional investors, and roughly 5 per cent to retail investors in Norway. International investors are allotted some 71 per cent of the Offer Shares. Employees are allocated a total of 4,200 Offer Shares.

Information on Offer Share allotments will be issued to shareholders on 5 February, and delivery of the Offer Shares is expected to take place on 10 February. Delivery is conditional on correct payment as specified in the IPO prospectus. Investors with access to investor services through their registrar in the Norwegian Central Securities Depository (VPS) can check their allotment of Offer Shares from 5 February. Investors who wish to know more about the allotment can contact SEB Enskilda, Pareto Securities or RS Platou Markets. Trading in North Energy shares on Oslo Axess is expected to commence on 5 February under the ticker code NORTH.

In addition to the Offering, the Company resolved to issue 1,886,792, consideration shares at a price of NOK 26.5 per share in connection with its acquisition of 4 sea energy AS for an aggregate value of NOK 50 million. The share issue will be completed as soon a possible following the Offering.

After the issue of 13,973,691 shares through the Offering and the issue of consideration shares, the Company has 23,174,661 outstanding shares and more than 300 shareholders. The price of NOK 26.5 per share corresponds to a market value for the Company of roughly NOK 615 million after the Offering and the issue of consideration shares.

The Company has also received subscriptions for 1,401,860 shares by way of exercise of previously issued subscription rights. The issue price has been set at NOK 21.20 per share, corresponding to a 20 per cent discount to the Offer Price.  The subscription period has closed, and the Company will release the final results on or about 9 February. The shares are expected to be issued on or about 17 February 2010. Gross proceeds from the exercise of subscription rights will amount to NOK 30 million.

Key members of North Energy's senior management  may during the next 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.

"We are extremely pleased with the successful completion of our IPO, which represents a major milestone for North Energy. Becoming a publicly listed company adds a new dimension to North Energy and the proceeds provide the financial position to carry out our ambitious drilling program and evaluate other business opportunities," says Erik Karlstrøm, CEO North Energy.

RS Platou Markets 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.

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