22.02.2012 06:30:00 CET

North Energy :North Energy prepared for high exploration activity

(Alta, 22 February 2012) North Energy is well positioned to sustain a high level of future exploration, thanks to new equity and farming out of the Fogelberg discovery. It is already under way with the first of four wells in its 2012 drilling programme.

Subscriptions of NOK 150 million were received by the company from a private placement on 9 February, and a repair issue of up to NOK 15 million is due to be implemented at an extraordinary general meeting on 2 March.
        The share issue was well supported by existing large shareholders and also attracted broad interest from new investors.
        Selling the holding in the Fogelberg gas and condensate discovery for NOK 70 million has also contributed to strengthening the company financially by a minimum of NOK 220 million.
        "We've initiated a highly interesting drilling campaign with a well on Storebjørn already ongoing, and we're working actively to expand the programme for next year," says chief executive Erik Karlstrøm.
        "Our cash reserves have been significantly reinforced by additional equity and the Fogelberg sale. That's given us financial resources which strengthen our balance sheet and will fund future growth in line with our plans and strategy."

North Energy has previously participated in two promising discoveries and has initiated this year's drilling campaign with an exploration well on Storebjørn.
        This oil prospect in PL 450 is located at the southern end of Norway's North Sea sector, and results from the well are expected towards the end of March.
        Due to be spudded in April, the next well will be drilled on the Kakelborg prospect, again in the North Sea. The two final wells are scheduled for this summer and autumn.

North Energy recorded a net loss of NOK 49.3 million for the fourth quarter of 2011, which was attributable to a generally high level of activity during the period.
        The company is solidly financed, with an equity of NOK 370 million. At 31 December and before the acquisition of additional capital and sale of Fogelberg, net cash reserves totalled NOK 173 million.

The report and presentation for the fourth quarter are attached. They can also be found at www.northenergy.no.

North Energy will present its results for the fourth quarter of 2011 at 09.00 CET today. The presentation will be made by chief executive Erik Karlstrøm and chief financial officer Knut Sæberg at the Felix course and conference centre, Bryggetorget 3, Oslo.

The presentation can also be followed by webcast

Erik Karlstrøm, Managing Director, North Energy ASA.

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

Knut Sæberg, Chief Financial Officer, North Energy ASA.

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

Kristin Ingebrigtsen, Director of Strategy and PR, North Energy ASA.
Mob: (+47) 926 05 601| E-mail: kristin.ingebrigtsen@northenergy.no

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

2011 Q4 Interim Report
North Energy 2012-02-22 Q4 2011 Presentation