18.08.2011 06:30:00 CET

North Energy ASA - second quarter 2011

18.8.2011 | North Energy ASA (NORTH). Today at 9 a.m. the Interim Report for the second quarter 2011, will be presented at Felix Conference Centre, Aker Brygge / Oslo. The presentation can also be followed through our webcast

Exploration Success for North Energy

A successful drilling at PL 535 Norvarg confirms North Energy's ambition and expertise in petroleum deposits in the Barents Sea.

The Norvarg license is located about 250 kilometers north of Melkøya in the Barents Sea. Total E & P Norway, the operator, has estimated the discovery to contain between 10 and 50 billion cubic meters of recoverable gas. This corresponds to between 63 and 315 million barrels of oil equivalents.

"If the most positive estimates prove to be right, then Norvarg is one of the largest gas discoveries on the Norwegian continental shelf in many years. The discovery confirms that our exploration people had a proper understanding of the search model. The Norvarg discovery is a breakthrough in a new province", says Erik Karlstrøm, CEO at North Energy ASA.

The next three wells will take place in the Barents Sea. In mid-September the drilling of PL 535 Heilo, also referred to as "the jewel in the portfolio", will take place directly followed by drilling of PL 518 Zapffe.

North Energy has during the second quarter increased its license portfolio from 21 to 23 licenses, with allocation of 20% interest in PL 601 Nupen, and with the purchase of 15% interest in PL 450 Storebjørn in the North Sea.

North Energy reported a loss after tax for the second quarter of NOK 12.6 million. This can be compared with a profit of NOK 10.6 million for the same quarter in 2010. The change in result can be attributed to the generally higher level of activity for the company in 2011.

North Energy is financially strong with equity of NOK 458 million as of the second quarter 2011.
The company's net cash reserve shows NOK 330 million including tax refunds.

Erik Karlstrøm, CEO and Knut Sæberg, CFO will present the second  quarter results at the Felix Conference Centre, Bryggetorget 3, Vika, Oslo at 9 a.m.

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


Erik Karlstrøm, CEO, North Energy ASA

Mob: (+47) 476 52 990 | E-mail: erik.karlstrom@northenergy.no

Knut Sæberg, CFO, North Energy ASA

Mob: (+47) 918 00 720 | E-mail: knut.saeberg@northenergy.no

Siw Sandvik, Communication Manager
Mob: (+47) 947 93 075 | E-mail: siw.sandvik@northenergy.no

2011 Q2 Interim Report
Stock Exchange Notification