North Energy to raise NOK 350 mln in new equity

NORWAY: North Energy ASA, an exploration and production company in northern Norway, has announced offering between 7,142,000 and 14,000,000 shares in the Company through an IPO in connection with the listing of the Company on Oslo Axess.

An indicative offer price range has been set at NOK 25 to NOK 33 per offer share. The book-building and application period will run from and including 25 January to 17:30 hours (CET) on 3 February 2010.

Subject to completion of the Offering, gross proceeds from the Offering will amount to up to NOK 350 mln and will provide North Energy with sufficient equity to carry out its ambitious drilling program of eight wells by 2012.

The first day of trading on Oslo Axess is expected to be 5 February 2010, subject to the Company fulfilling the conditions for the Listing on Oslo Axess as set out in the resolution made by Oslo Børs in its board meeting to be held on 28 January 2010.

The offering will comprise an institutional tranche directed towards Norwegian and international professional and institutional investors, and a retail tranche directed towards retail investors in Norway. The Offering will also include an employee offering, where the employees of the Company are given the opportunity to subscribe for 200 Offer Shares at a 20% discount.

In addition, the Company will issue up to 2,000,000 consideration shares in connection with its acquisition of 4 sea energy AS which will be completed as soon a possible following the Offering, being shares with an aggregate value of NOK 50 million based on the offer price in the Offering,. The Company will also issue up to 1,400,520 shares subject to exercise of previously issued subscription rights. The subscription price for these rights will be at a 20 % discount to the price set in the Offering.

Following completion of the Offering, key members of North Energy's senior management may during a 14 calendar day period exercise options to subscribe for a number of shares corresponding to up to a 5.5 % ownership post-offering. The strike prices for these options are between NOK 15 and NOK 25 per share.

"Through the initial pre-marketing we have enjoyed encouraging interest in our company and our license portfolio from leading institutional investors. The APA 2009 license award has confirmed the quality of North Energy's exploration team as well as North Energy's ability to secure attractive licenses alongside established E&P companies. Becoming a publicly listed company adds a new dimension to North Energy and the equity offering gives us the financial position to carry out our ambitious drilling program and evaluate other business opportunities," says Erik Karlstrøm, CEO North Energy.

About:

North Energy is an Exploration and Production company headquartered in Alta, Finnmark, Norway. The company holds ownership in a total of 13 licenses, subject to completion of the acquisition of 4 sea energy, of which 6 are in the Barents Sea, 5 in the Norwegian Sea and 2 in the North Sea basin. In the APA 2009, North Energy was allocated ownership in three licenses, two in the Barents Sea and one in the Norwegian Sea. North Energy was pre-qualified as operator in Norway in March 2009.

The company is focusing on exploration in northern parts of the Norwegian continental shelf and is active in the discussions regarding the opening of Lofoten and Vesterålen, the most attractive untouched exploration acreage in Norway.

North Energy has 38 employees and has offices in Alta and Oslo.