Alta, 14 March 2014

North Energy has strengthened its capital base by NOK 360 million through a private placement of NOK 285 million and a convertible bond loan of NOK 75 million. Access to electromagnetic (EM) data in the Barents Sea from EMGS and investment in the best available geophysical data sets mean the company is well positioned in its work on applications for the 23rd offshore licensing round, and ensure a higher level of exploration and drilling activity in the time to come.

"Access to EM and seismic data, combined with extensive analyses of low-frequency data and resonance analyses, have given us more precise results and produced a new ranking of our licence portfolio," explains chief executive Erik Karlstrøm. "The capital secured means we're financed to participate in eight to 12 wells selected on the basis of our application of technology."

APA 2013
North Energy is satisfied with its good outcome from the 2013 awards in predefined areas (APA). Six new licences were awarded to the company, including two operatorships. These holdings break down into two each in the North, Norwegian and Barents Seas.

Capital increase
North Energy secured NOK 285 million in cash through a private placement of 71.25 million shares at NOK 4.00 per share and a convertible bond loan of NOK 75 million. The share issue was directed at North Energy's largest shareholders and other selected shareholders, and was approved by an extraordinary general meeting on 13 February.

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

Financial performance
The company made a net loss of NOK 27.9 million for the first quarter. This related primarily to exploration and licence costs, which totalled NOK 21.6 million after tax. The company is financed with an equity of NOK 508.5 million, and had net cash and cash equivalents of NOK 390 million at 31 March. That includes cash and tax receivable less net exploration loan debt and the convertible loan from EMGS.

The interim report and presentation for the first quarter of 2014 are attached. They are also available at www.northenergy.no.

North Energy will present its first quarter results at 09.00 today. To be given by chief executive Erik Karlstrøm and CFO Knut Sæberg, the presentation will take place at the Felix Course and Conference Centre, Bryggetorget 3, Oslo.

The presentation can also be followed as 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 to the disclosure provisions in section 5, sub-section 12 of the Norwegian Securities Trading Act.