North Energy ASA - Earnings Release 2017

North Energy ASA - second quarter of 2017 - Improved profit following gain on investments

Oslo, 22 August 2017

North Energy ASA ("North Energy" or "Company") recorded a net profit of NOK

41.1 million in the second quarter of 2017, compared to a profit of NOK 5.4

million in the corresponding quarter 2016. The improved result is mainly due to

gain on investments. Over the past year, North Energy has successfully

transitioned to become an industrial holding company focused on value creation

through energy and energy related investments.

"I am pleased to report that our revised corporate strategy continues to

generate substantial shareholder returns, and we expect it will continue to do

so going forward," said Knut Sæberg, CEO of North Energy.

Following an extensive strategic review, the Board of Directors of North Energy

in July decided to discontinue the petroleum activities in its subsidiary North

E&P and to seek cash reimbursement of the company's offshore tax losses. With no

clear signs of improved market fundamentals for small exploration companies, the

Board concluded that it is now in the best interest of the Company's

shareholders that North E&P exits its petroleum activities on the Norwegian

Continental Shelf ("NCS").

"The decision to discontinue operations on the NCS is a natural consequence of

the persistent challenges facing small cap exploration companies," said Sæberg.

North Energy remains in a comfortable financial position. The Company is

financed with equity of NOK 403 million, and on 30 June 2017 had a net cash

position of NOK 46 million. Including the value of tax losses carried forward in

North E&P, the net cash position was approximately NOK 247 million. The final

proceeds received from the liquidation of North E&P will depend on closing

costs, as well as a final assessment by the Norwegian Oil Taxation Office.

The interim report and presentation for the second quarter are attached. These

can also be accessed at www.northenergy.no.

North Energy will present its results for the second quarter at 09.00 today. The

presentation will be held by CEO Knut Sæberg at Tjuvholmen allé 3, Oslo. The

presentation will also stream live via webcast.

For further information, please contact:

Knut Sæberg, CEO

Mobile: +47 918 00 720 | E-mail: [email protected]

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.

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