Alta, 13 May 2015

Restructuring characterised North Energy during the first quarter of 2015. The company initiated an extensive plan to reduce costs in the business. At the same time, the strategic review initiated by the board continued with the aim of manifesting inherent value in the company.

"Our restructuring programme is on schedule," confirms Knut Sæberg, acting CEO of North Energy. "A substantial reduction in our cost base will be achieved. At the same time, the organisation is building more integrated technical and commercial teams by concentrating activities in Tromsø and Stavanger".

North Energy participated in a single exploration well during the first quarter - Tvillingen South in PL 510 in the Norwegian Sea. However, this operation was terminated as a result of technical problems, and the partnership is now assessing a new well in the licence during the second half. North Energy could therefore be involved in a total of four exploration wells in the July-December period.

"We face a very active second half," says Sæberg. "The exploration programme of three-four wells has the potential to create substantial value for the company. At the same time, we recognise that exploration is a risky business. That makes it crucial to continue work on maturing quality prospects for 2016. The search for our commercial breakthrough is continuing unabated".

North Energy posted a net loss of NOK 35.6 million for the first quarter. This related primarily to exploration and licence costs of roughly NOK 25.8 million after tax. The company is financed with an equity of NOK 404.5 million and had a net cash position of NOK 294 million at 31 March, including tax receivable less exploration loan debt.

The interim report and presentation for the first quarter are attached. These can also be accessed at www.northenergy.no.

North Energy will be presenting its results for the first quarter of 2015 at 09.00 today. The presentation will be given by Knut Sæberg, the acting CFO, and Erik Henriksen, vice president for exploration. The venue is the Felix Course and Conference Centre, Bryggetorget 3, Oslo.

The presentations can also be followed via webcast  .

Further information from:

Knut Sæberg, acting CEO
Mob: +47 918 00 720 | E-post: knut.saeberg@northenergy.no

Kristin Ingebrigtsen, Direktør organisasjon og kommunikasjon
Mob: +47 926 05 601 | E-post: kristin.ingebrigtsen@northenergy.no

 

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