28.08.2014 06:30:00 CET

North Energy ASA: Results for the second quarter

Alta, 28 August 2014

North Energy has strengthened its financial position through the conversion of a loan from Electromagnetic Geos ASA (EMGS). Drilling under way on the Pingvin prospect in the Barents Sea and five firm wells over a short period mean a high level of exploration activity in the company during the time to come.

"We're satisfied that EMGS is strengthening its equity stake in the company, and are looking forward to continued technological collaboration," says North Energy CEO Erik Karlstrøm.

Results from the current well on the Pingvin project in PL 713 in the Barents Sea are expected in September. Decisions have been taken on drilling a further four wells over the next 12 months, including two in the Norwegian Sea and one each in the North and Barents Seas.

Conversion of loan to shares
EMGS has converted NOK 28.4 million of its NOK 75 million loan to shares in North Energy. The loan balance of NOK 46.6 million falls due on 2 September. The shares issued as a result of the conversion have an issue price of NOK 4.1451 per share. Following the conversion, EMGS owns 11 851 463 shares in North Energy, corresponding to 9.96 per cent.

Interim results
The company made a net loss of NOK 29.1 million in the second quarter. This related primarily to exploration and licence costs, which totalled about NOK 18.7 million after tax. North Energy is financed with an equity of NOK 479.9 million, and had a net cash position of NOK 356.9 million at 30 June. That included cash and cash equivalents as well as tax receivable less net exploration loan debt and convertible debt to EMGS.

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

North Energy will be presenting its results for the second quarter of 2014 at 09.00 today. The presentation will be given by Erik Karlstrøm, the CEO, Kristen Berli, the senior vice president for exploration and business development, and Knut Sæberg, the CFO. The venue is the Felix Course and Conference Centre, Bryggetorget 3, Oslo.

The presentations can be followed via 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, vice president organisation and communication
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.

2014 Q2 Interim Report
North Energy 2014-28-08 Presentation