26.09.2014 15:10:53 CET

North Energy ASA - Pingvin discovery enhances knowledge of the Barents Sea

Alta, 26 September 2014

As announced earlier, North Energy as a partner in PL 713 has completed drilling of exploration well 7319/12-1 in the Pingvin prospect. The well has proven a gas column of about 129 metres. Work is now being initiated to determine whether the gas contains liquids which could make Pingvin commercial. This discovery confirms a new play in the unexplored area of the Barents Sea north-west of Johan Castberg.

Operator Statoil estimates the volumes in Pingvin to be in the order of 30-120 million barrels of recoverable oil equivalent. The Pingvin well is the first to be drilled in PL 713, a large unexplored area awarded in the 22 licensing round, and has proven hydrocarbons in sandstone.

"We take the view that the well was not located where the likelihood of finding oil or condensate was highest," says North Energy chief executive Erik Karlstrøm. "It is nevertheless valuable by demonstrating both a good reservoir and a functioning hydrocarbon system in the area. As Statoil has emphasised, the well result provides a good basis for further studies in the licence."

From the observations made, it remains an open question whether the gas also contains condensate. Further work will aim to clarify this issue, which will be crucial for another well in the licence. Combined with a decision to develop Johan Castberg, such a well could provide the basis for a commercial development of Pingvin as well.

The partners in the licence are Statoil as operator with 40 per cent, RN Nordic Oil with 20 per cent, Edison with 20 per cent and North Energy with 20 per cent.

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 of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.