12.11.2015 07:00:00 CET

North Energy ASA - third quarter of 2015 - restructuring plan on course

Tromsø, 12 November 2015

North Energy participated in two wildcats during the third quarter. The Tvillingen South well in the Norwegian Sea encountered gas, but not in sufficient quantities for the discovery to be assessed as commercial. Completed in July and included in the company's second-quarter report, the Haribo well failed to prove hydrocarbons. North Energy is now completing the restructuring process which has been under way during 2015, and is tailoring its exploration work to a more focused strategy.

"The restructuring plan is on schedule," confirms Knut Sæberg, acting CEO of North Energy. "Our cost base has been cut dramatically, and we will have very low operating expenses in the time to come. We're continuing our efforts to adapt to the demanding market conditions. The threshold for investment commitments will be high, and our future exploration wells must satisfy stringent requirements for swift commercialization. Taken together, these measures mean that our financial position is good," says Sæberg.

The company had interests in a total of 21 licences on the Norwegian continental shelf at 1 November. Drill or drop decisions are due to be taken over the next 12 months for 16 of these.

North Energy posted a net loss of NOK 32.9 million for the third quarter. This related primarily to exploration and licence costs of roughly NOK 25.9 million after tax.

The company is financed with an equity of NOK 337.9 million and had a net cash position of NOK 219.1 million at 30 September, including tax receivable less exploration loan debt.

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

North Energy will be presenting its results for the third quarter of 2015 at 09.00 today. The presentation will be given by Knut Sæberg, the acting CEO, 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, 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.

2015 Q3 Interim Report
North Energy 2015-11-12 Q3 2015 Presentation