20.02.2013 07:00:00 CET

North Energy ASA - Fourth quarter results presented

Alta, 20 February 2013

North Energy is entering into a collaboration with technology company Rex Oil & Gas Limited (Rex) on the use of its Virtual Drilling exploration solution for identifying and locating oil prospects. This technology, which has not been utilised on the Norwegian continental shelf (NCS) before, will be a valuable supplement to the existing exploration tools used by the company.

"The technology does not replace any of the tools we are using today, but helps to develop more oil prospects with current exploration tools," comments Erik Karlstrøm, North Energy's chief executive. "We will then make use of resonance technology as a final filter, then select the most promising prospects out of a wider range than today. This process will require more geologists and geophysicists as well as more seismic. A search for a partner in seismic is therefore a natural step further in this process."

Virtual Drilling is an innovative solution which exploits the way different fluids resonate in different frequencies in seismic data. This allows it to distinguishes between water-bearing structures and oil. The technology is new on the NCS, and North Energy has conducted a number of blind tests with it on historical wells over the past 12 months, which yielded very good results.

Drilling programme expanded by one well, and appraisal drilling imminent on Norvarg

Great expectations attach to the appraisal well on the Norvarg structure, which is due to be drilled by the Leiv Eiriksson rig in March 2013. This well could yield a better answer concerning the production properties of the reservoirs, and provide the basis for a more assured estimate of the volumes in the structure.

Plans are being drawn up in parallel for a well on the Frode oil prospect in PL 299 on the Halten Bank in the Norwegian Sea. This prospect lies close to existing infrastructure, with a short time frame for bringing a discovery on stream.   

During January 2013, North Energy completed the reduction of its 100 per cent holding in PL 510, where it has been decided to drill a well in 2014-15. Maersk Oil Norway is operator for the licence with a 50 per cent holding, while North Energy retains 20 per cent and Edison is a partner with 30 per cent.


The company showed a net loss of NOK 59.6 million in the fourth quarter. This result can primarily be attributed to increased exploration and licence costs as well as extensive work in connection with the 22nd licensing round, including substantial seismic data costs.

North Energy is financed with an equity of NOK 410 million, and had a net cash position of NOK 259 million at 31 December. That includes cash and cash equivalents as well as tax receivables less net liabilities.

The interim report and presentation for the fourth quarter of 2012 is attached. These are also available at  www.northenergy.no

North Energy will be presenting its results for the fourth quarter of 2012 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.

2012 Q4 Interim Report
North Energy 2013-20-02 Q4 Presentation (eng)