North Energy is further expanding its drilling programme, and will participate in four firm exploration wells over the next six months. These include three oil prospects in the North Sea and one gas/condensate prospect in the Norwegian Sea.

Through its swap agreement with Dong E&P, whereby it is taking over 20 per cent of PL 299 Frode in exchange for 20 per cent of PL 835 Jette, North Energy will participate in a total of five wells during 2012. PL 299 Frode is an oil prospect in the North Sea. In addition to a new firm well, this agreement helps to secure a good balance between gas and oil prospects.

A farm-down agreement has furthermore been signed with Lime Petroleum Plc (Lime), whereby North Energy will transfer 50 per cent of its interests in PLs 530, 518, 526 and 530 to Lime in exchange for NOK 31.8 million. Lime and its partner, Rex Oil, is seeking to test its innovative technology in these four licences through the deal.

Stronger position in Barents Sea

"The positive test of the major Norvarg gas discovery, and realistic expectations of new infrastructure in the form of pipelines, means that we face a breakthrough in the Barents Sea," says CEO Erik Karlstrøm in North Energy. "Our commitment in the 22nd round will reflect that."

Four more wells in 2012

Following the completion of drilling on Storebjørn, which was reported on 2 May 2012 to be dry, this year's drilling programme at North Energy will be extended by an additional firm well. This means that four remain to be drilled this year. The Kakelborg oil prospect in the North Sea, due to be spudded during May, is the next in line. That will be followed by spudding the Jette prospect in PL 385 during July, and by two wells in the North Sea during the autumn.

Results

The company showed a net loss of NOK 14.5 million for the first quarter of 2012. This is attributable to a generally high level of activity during the period. North Energy is solidly financed, with an equity of NOK 505 million. At 31 March, its net holding of cash and cash equivalents amounted to NOK 269 million. That includes cash and tax receivables less net debt.

The interim report and presentation for the first quarter of 2012 are attached. They are also available at www.northenergy.no.

North Energy will be presenting its results for the first quarter of 2012 at 09.00 CET today. The presentation will be given by Mr Karlstrøm and CFO Knut Sæberg at the Felix Course and Conference Centre, Bryggetorget 3, Oslo.

The presentation can also be followed by webcast

Contacts:

Erik Karlstrøm, CEO
Mob: +47 476 52 990 | E-mail: erik.karlstrom@northenergy.no

Knut Sæberg, CFO
Mob: +47 918 00 720 | E-mail: knut.saeberg@northenergy.no

Kristin Ingebrigtsen, director of strategy and public relations
Mob: +47 926 05 601 E-mail: kristin.ingebrigtsen@northenergy.no