Alta, 23. December 2014

Over the course of the last few months, North Energy has been approached regarding strategic opportunities available to the company. In light of preliminary discussions, as well as the latest developments in the oil markets, the Board of Directors has resolved to initiate a strategic review to evaluate the various strategic alternatives available for North Energy.

The recent developments in the oil market has impacted the outlook for exploration activities, which has become more challenging in light of a lower oil price as well as large cuts in capital expenditures by the industry. Although these developments present challenges, it is also evident that they will present attractive opportunities to invest in organic growth initiatives and further exploration assets. The strategic discussions and opportunities available to the company reflect this outlook, and the Board of Directors believe there is substantial value in North Energy's portfolio of NCS licenses, technological platform and organization not currently reflected in the company's market capitalization. The Company is highly committed to its toolbox and believes its technological platform will be a strong factor in generating shareholder value going forward.

In parallel to the strategic review, the Board of Directors will evaluate the cost base of the company. The recent developments in the oil industry necessitate prudent cost reductions and the Board believes that addressing its cost structure will place the company in an attractive position to generate shareholder value long term.

As of the strategic review, the Board will explore options for North Energy both as a stand-alone entity and in combination with others. The strategic review is not assured to result in a transaction, however the Board of Directors remains committed to maximizing value for shareholders regardless of the final outcome of the process.

The Board of Directors

North Energy ASA

 

Further information from:
Anders Onarheim, Chairman of the Board
Mob: +47 974 01 511 | E-mail: ao@spitsbergen.as

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