31.07.2013 08:00:00 CET

North Energy ASA - Update on the Norvarg appraisal well

Alta, 31 July 2013

The partnership in PL535, located in the Norwegian sector of the Barents Sea, is in the process of concluding the drilling of appraisal well 7225/3-2 on the Norvarg gas discovery made in 2011.

The appraisal well was drilled approximately 275 km north of the Hammerfest LNG plant on Melkøya, in a water depth of 377 metres, to delineate the Triassic Kobbe Formation of the Norvarg gas discovery. Two formation tests were carried out in the upper and lower parts of the Kobbe Formation with a maximum gross production rate of 175,000 Sm3 gas per day (approximately 6.2 million standard cubic feet per day) on a 52/64-inch choke. Extensive data acquisition, wire line logging, coring and sampling has been carried out. The well has also been completed with down hole gauges capable of transmitting data after abandonment, which will give further information about the extent of the reservoir.

The Norvarg appraisal well was drilled to test the eastern segment of the structure and to assess the quality and productivity of the Kobbe reservoir.

The results of the appraisal well have confirmed the extensive nature of the Norvarg discovery and the presence of movable gas throughout the Kobbe reservoir, with no water contacts seen. As predicted the quality of the Kobbe reservoir is variable and further analysis is required to confirm the productivity of some of the reservoir intervals. Work will now be undertaken by the partnership to analyze and interpret the acquired data and evaluate the estimated recoverable hydrocarbons on the structure and potential future development options. Moveable gas identified in the deeper levels of the reservoir than those in the exploration well will be taken into account in the evaluation of the potential reserves.

The well was drilled to a vertical depth of 2171 metres below sea level and terminated in the Klappmyss formation in the Early Triassic. The well will now be permanently plugged and abandoned.

This is the second well on PL535. The license was awarded in the 20th licensing round in 2009. Well 7225/3-2 was drilled using Ocean's Leiv Eiriksson semi-submersible rig.

The partners in the license are Total E&P Norge (Operator, 40 per cent interest), North Energy (20 per cent), Ithaca Petroleum Norge (13 per cent), Statoil (10 per cent*), Det Norske (10 per cent*), and Rocksource Exploration Norway (7 per cent). * Pending government approval.

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, Vice President strategy and PA/PR
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.