North Energy - North Energy is filling up the exploration program.

31.03.2011 12:29:00 CET

North Energy is filling up the exploration program.

North Energy ASA have entered into an agreement with Wintershall Norway ASA for acquisition of a 10% share in production license 370 Kakelborg and an increased share in production license 385 Jette with 20%.

License 370 is located in the North Sea approximately 30 kilometers northwest of the Snorre Field. Drilling of the 370 Kakelborg prospect is planned for the first quarter of 2012 with the rig Transocean Arctic. The purchase of Kakelborg means that North Energy have eight commitment wells In the period 201-2012.

These acquisitions are a milestone for North Energy. The original plans from 2007 were based on a portfolio of eight wells. These goals are met almost one year ahead of schedule. Of the eight wells, two have been drilled so far. One discovery, at PL 433 Fogelberg, will most likely be developed. The purchase will contribute to North Energy having six permanent wells in their program over the next 18 months. The purchase into PL 370 and PL 385 indicates that opportunities exist in the transaction market and that North Energy's growth strategy can be accomplished at a much quicker pace than originally planned, says North Energy CEO Erik Karlstrøm.

Given governmental approval, North Energy ASA will have a 10% share of PL 370, together with Wintershall ASA 40 % and the operator, Agora Oil & Gas 30%, and Concedo Gas 20%.
Furthermore, North Energy ASA have also entered into an agreement with Wintershall Norway ASA to purchase a 20% share of production license 385 Jette. North Energy already own 15% in this license, located in the Norwegian Sea about 20 kilometers northwest of the Norne Field. Drilling of PL 385 is also planned for the first quarter of 2012 with the rig Transocean Leader. Providing governmental approval, North Energy will have a 35% share in PL 385, together with Statoil ASA 45% and operator and Noreco ASA 20%.

In 2011 North energy will participate in three wells in the Barents Sea. Potential side tracks in these wells may contribute to possible discoveries being developed faster. North Energy consider this to be a very positive element for increased value creation.

The company will be represented by:
Erik Karlstrøm, Chief Executive Officer, telephone: +47 476 52 990
Knut Sæberg, Chief Financial Officer, telephone: + 47 918 00 720

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.