20.02.2014 06:30:00 CET

North Energy ASA - results for the fourth quarter

Alta, 20 February 2014 

North Energy strengthens its capital base by NOK 360 million through a private placement of NOK 285 million and a convertible bond loan of NOK 75 million. The latter gives the company access to all electromagnetic (EM) survey data acquired by EMGS in the Barents Sea. A good outcome from the 2013 awards in predefined areas (APA) further increases the licence portfolio.

"The share issue and access to EM data have put us in a strong position," says chief executive Erik Karlstrøm. "We now have the finance to drill eight to 12 wells. At the same time, our technology focus has been further reinforced. We believe that the combination of EM technology, Rex Virtual Drilling and traditional geological and geophysical expertise will help to de-risk projects and thereby enhance the probability of making commercial oil discoveries."

NOK 360 million in new capital
North Energy raised NOK 285 million in cash through a private placement of 71.25 million shares at NOK 4 per share, and a convertible bond loan of NOK 75 million. The share issue was directed at North Energy's larger owners and other selected shareholders, and was approved by an extraordinary general meeting held on 13 February.

Agreement with EMGS
The NOK 75 million convertible bond loan has been entered into with EMGS and relates to the acquisition of rights to the whole EMGS library of EM data from the Barents Sea. Running for six months, the loan can be converted to shares after four-five months at a strike price of NOK 4.15 per share.

APA 2013
North Energy is very satisfied with the outcome of the 2013 APA round. Its portfolio was increased by six new licences, including two operatorships. These licences are spread between the North, Norwegian and Barents Seas, with two in each of these regions.

Financial results
The company made a net loss of NOK 112.2 million in the fourth quarter, which primarily reflected the expensing of capitalised exploration costs totalling NOK 94.9 million after tax for PL 535 Norvarg. With an equity of NOK 260.6 million, North Energy had a net holding of NOK 164 million in cash and cash equivalents at 31 December. That included cash in hand and tax receivable less net liabilities. The capital increase of NOK 360 million was implemented in the first quarter of 2014 and is accordingly not taken into account in the financial results for the fourth quarter of 2013.

The report and presentation for the fourth quarter of 2013 is attached. These are also available at www.northenergy.no.

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

The presentation can also be followed via a webcast

Further information from

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

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

Kristin Ingebrigtsen, direktør strategi og samfunn
Mob: +47 926 05 601 | E-post: kristin.ingebrigtsen@northenergy.no

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

2013 Q4 Interim Report
North Energy 2014-20-02 Q4 Presentation (eng)