03.05.2012 07:30:00 CET

North Energy ASA confirms farm-down agreement with Lime Petroleum

Alta, 3 May 2012

Following the letter of intent of 10 April 2012, North Energy ASA is pleased to announce that it has signed an agreement with Lime Petroleum Plc (Lime) on transferring 50 per cent of North Energy's  interest in Norwegian production licences 530, 518, 526 and 530 to Lime.  

North Energy will receive a compensation of  NOK 31.8 million in cash after tax for the transfer of its interest in these four licences. Lime is embarking on a prequalification process on the NCS. It is agreed that North Energy's minimum consideration will be NOK 27.5 million in cash, should Lime be unsuccessful.

The prequalification of Lime and the licence transfers are conditional on the approval of Norwegian government. If Lime is unsuccessful in prequalifying by 1 July 2013, North Energy will receive NOK 27.5 million in cash as compensation.

"We are very pleased to sign this agreement," says CEO Erik Karlstrøm at North Energy. "The incentive for this deal is not primarily financial. Lime and Rex will test their innovative technology in these four licences, and we hope these transfers will add more firm wells to our drilling programme."

In a statement from the CEO of Lime Petroleum, Mans Lidgren, it says that "We are happy having finalized this opportunity offered to Lime Petroleum Plc to enter the Norwegian Continental Shelf at low cost and at low risk. North Energy's experience in the region combined with Lime`s exclusive access to innovative exploration technologies gives us great comfort going forward creating and enhancing the value in the selected licensees." 
A loan agreement of NOK 27.5 million has also been entered into between North Energy and Lime to cover potential obligations for the licences until Lime has received its prequalification. The loan is unsecured and ranks behind North Energy's exploration finance facility. It falls due at the date of the licence transfers.  


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

This information is mandatory under Section 5-12 of the Securities Trading Act.