Tromsø, 19 August 2015

North Energy participated in two wildcats during the second quarter. Both the Zumba and the Haribo drilling prospects proved to be dry. The lack of commercial success combined with persistently difficult market conditions mean that North Energy is assessing further cost-cutting measures.

"Given the difficult market conditions facing the industry and the fact that we're still seeking our commercial breakthrough, we must as a responsible company consider further measures to reduce costs," says Knut Sæberg, acting CEO of North Energy. At the same time, our threshold for taking on future investment commitments is being raised. We'll be guarding our cash position well."

Neither the Zumba prospect in the Norwegian Sea nor the Haribo prospect in the North Sea proved to contain commercial hydrocarbon deposits. Earlier in August, the company announced the spudding of a new well on the Tvillingen South prospect in the Norwegian Sea, and a well is expected to be spudded later this year on the Ørnen prospect in the Barents Sea.

"Tvillingen South is a candidate for a possible tie-back to Kristin should a discovery be made, while Ørnen represents a substantial oil prospect in the Barents Sea," says Sæberg. We face 11 drill or drop decisions over the coming year, and have indicated some possible wildcats for 2016-17."

North Energy posted a net loss of NOK 34 million for the second quarter. This related primarily to exploration and licence costs of roughly NOK 25.6 million after tax. The company is financed with an equity of NOK 370.5 million and had a net cash position of NOK 261 million at 30 June, including tax receivable less exploration loan debt.

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

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