North Energy continued its extensive restructuring plan in the fourth quarter of 2015. At the end of 2015, the Company had completed several key measures in this respect, including the closure of the Alta and Tromsø offices. In parallel, the Company in December announced the acquisition of Explora Petroleum AS (Explora). With a low cost base and a healthy financial position, North Energy will continue to evaluate the market for potential value adding transactions.
“North Energy is looking for the right opportunities to grow, and we will continue our search for business opportunities,” confirms Knut Sæberg, CEO of North Energy. “Our own cost base has been reduced dramatically, and we will have very low operating expenses in the time to come. We do not foresee any drilling activity in the short term, but we will continue to look for quality opportunities, both in the farm-in market and on a corporate level”.
The acquisition of Explora was announced in December and completed in February. Explora had 16 licences on the Norwegian Continental Shelf (NCS) at the date of transaction, including small interests in the Skarfjell and Grosbeak discoveries, both in PL 378 in the north-eastern North Sea, located about 20 kilometres south-west of the Gjøa field. Skarfjell is currently estimated to contain 127 million barrels of recoverable oil equivalents while Grosbeak is estimated to contain 35 million barrels of recoverable oil equivalents. Net to North Energy, the resources in license PL 378 are estimated to be approximately 4 mmboe.
North Energy posted a net loss of NOK 23.6 million for the fourth quarter. This related primarily to exploration and licence costs of roughly NOK 14 million after tax. The company is financed with equity of NOK 314.9 million and on 31 December 2015 had a net cash position of NOK 188.3 million, including tax receivable less exploration loan debt.
The interim report and presentation for the fourth quarter are attached. These can also be accessed at www.northenergy.no.
North Energy will be presenting its results for the fourth quarter of 2015 at 09.00 today. The presentation will be given by CEO Knut Sæberg. The venue is the Felix Course and Conference Centre, Bryggetorget 3, Oslo. The presentation can also be followed via webcast.
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This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.