09.11.2011 06:30:00 CET

North Energy reports third quarter results

Alta, 9 November 2011: North Energy ASA (OSE:NORTH)

The third quarter results are marked by high activity during the period, but results from ongoing projects has provided positive grounds for future projects. 

In the third quarter North Energy drilled on dry well in PL 530 in the southern part of the Heilo structure, although the well data provided valuable information in relation to North Energy's other prospects in the region.

-    We are of course disappointed with the results from Heilo, but we know the oil is in the area, and the drilling results from Heilo provide us with valuable information for future projects. North Energy has an exciting drilling program for the coming quarters and we are well positioned for the upcoming licensing rounds, says CEO Erik Karlstrøm.

Following internal revisions during the quarter volume estimates for PL 535 Norvarg has been raised, bringing the discovery in the Barents Sea closer to commercialisation. The discovery in Norvarg means a number of similar, smaller discoveries can be coordinated with regard to new infrastructure, which will result in lower thresholds for commercial production and thus mean more activity for the Bjarmeland Platform and the region along the Russian boundary.

North Energy reported also an increased resources estimate for Fogelberg, which provides a basis for profitable development.

During the quarter, North Energy acquired 15% of PL 450 - Storebjørn. The authorities also approved the acquisition of 10% of PL 370 - Kakelborg.

The company reports a negative EBIT of NOK 146 million and a net loss of NOK 37 million for the period.

North Energy is financially solid with a total equity of NOK 419 million, corresponding to an equity ratio of 33%. By the end of third quarter, the company has net cash reserves of NOK 238 million and fully secured funding for the coming four wells.

The third quarter report and presentation are attached. The documents are also available for download at www.newsweb.no and www.northenergy.no.

North Energy will present the results for third quarter 2011 today at 09:00 CET. The presentation will be held by CEO Erik Karlstrøm, and will take place at Felix Kurs og Konferansesenter, Bryggetorget 3, Oslo. The presentation can also be followed by webcast.

Erik Karlstrøm, CEO, +47 476 52 990
Knut Sæberg, CFO, +47 918 00 720
Kristin Ingebrigtsen, Director of Strategy and Public Relations +47 926 05 601

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

2011 Q3 Interim Report
North Energy 2011-11-09 Q3 2011 Presentation