Alta, 31 October 2012

The level of activity at North Energy up to the end of 2012 will be the highest since it was founded. As work on the application for the 22nd offshore licensing round enters its final phase, the company is involved in parallel drilling of two exploration wells.

"We're in a period when activity and anticipation are high," comments Erik Karlstrøm, North Energy's chief executive. "I'm proud of the capacity and ability to collaborate now being shown by our organisation. Many are deserving of great praise. Results from the current drilling operations are due to be available before 31 December, but we must wait until the spring before we learn the outcome of our work on the 22nd round."

Two parallel wells
A well was spudded on the Jette structure in PL 385 in the Norwegian Sea on 21 October. Its main goal is to test a classic Jurassic trap similar to the Norne and Alve structures.
Statoil is operator, and North Energy has a 15 per cent holding. A discovery in the structure is likely to be developed through a tie-back to facilities on Norne.
This well is paralleled by the start to drilling on the Skagen oil prospect in the North Sea. Lotos is operator, and North Energy has a 25 per cent holding in the licence. Results from both wells are expected before 31 December.

Business development
The sale of North Energy's holding in the Fogelberg-discovery in PL 433 was closed on 31 August. Including interest, the sale price came to NOK 73 million.
A transaction which involved North Energy swapping a 20 per cent holding in PL 385 Jette for 20 per cent of Dong Energy's holding in PL 299 Forde was closed on 28 September.
North Energy also purchased a 6.67 per cent holding in PL 526 from Norwegian Energy Company (Noreco) and a 20 per cent holding in the same licence from Dana Petroleum.

Results
The company showed a net profit of NOK 16.9 million for the third quarter. This result can primarily be attributed to the sale of PL 433 Fogelberg, which yielded a gain of 46.9 million.
North Energy is financed with an equity of NOK 467.7 million. At 30 September, the company's net holding of cash and cash equivalents was NOK 308 million.

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

North Energy will be presenting its results for the third quarter at 09.00 today in the Felix Course and Conference Centre at Bryggetorget 3 in Oslo.
The presentation will be given by chief executive Erik Karlstrøm and chief financial officer Knut Sæberg.

This presentation can also be followed as a webcast

Further information from:

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 andpublic relations
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.