13.11.2014 06:30:00 CET

North Energy ASA presents third quarter results: Discovery in Pingvin - results under evaluation

Alta, 13 November 2014

Hydrocarbons have been discovered in the Pingvin well in the Barents Sea. Extensive studies of acquired data will provide a more exact answer about the contents of the well. With four firm wells planned for completion by the end of 2015, North Energy is entering a period with a high level of exploration activity.

The Pingvin well in PL 713 has proved a new play in a very good sandstone reservoir west of Johan Castberg. The company will evaluate the discovery in the time to come and assess whether it has commercial value.

                "We are optimistic about the future analyses and studies of the Pingvin structure," says Kristen Berli, vice president for exploration and business development.

                "Uncertainty remains about the hydrocarbon phase and volumes in the structure, but we expect to achieve greater clarity on these issues through the studies which have now been launched."

The drilling plan for 2015 contains four wells, including two in the Norwegian Sea, one in the North Sea and one in the Barents Sea. The first is due to be spudded in the first quarter on the Tvillingen South prospect in PL 510 in the Norwegian Sea.

Conversion of loan to shares
EMGS converted NOK 28.4 million of its NOK 75 million convertible loan to shares in North Energy during the quarter. The balance of NOK 46.6 million has been repaid. Shares were issued as a result of the conversion at a price of NOK 4.1451 per share. Following the conversion, EMGS holds 11 851 463 shares in North Energy or 9.96 per cent of the share capital.

Financial results
The company made a net loss of NOK 31.8 million in the third quarter. That primarily reflects exploration and licence costs, which amounted to about NOK 12.5 million after tax. North Energy is financed with an equity of NOK 476.5 million and had a net cash position of NOK 344 million at 30 September. That includes cash and cash equivalents and tax receivable less its exploration loan.

The report and presentation for the third quarter are attached. They are also available at www.northenergy.no.

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

The presentations can be followed via webcast.

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

Kristen Berli, vice president exploration and business development
Mob: +47 905 06 786 | E-mail: kristen.berli@northenergy.no

Kristin Ingebrigtsen, vice president organisation and communication
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.

2014 Q3 Interim Report
North Energy 2014-11-13 Q3 Presentation