North Energy ASA - M&A Activity 2017

North Energy Capital with strategic position in Reach Subsea ASA

North Energy Capital AS ("NEC"), a subsidiary of North Energy ASA ("North"),

will through a series of transactions become the new major shareholder of Reach

Subsea ASA ("Reach") controlling a strategic stake of approximately 30%.

NEC has reached an agreement with certain shareholders of Accello Partners I AS

("Accello"), the current 30% shareholder of Reach, to acquire their shares and

shareholder loans. The purchase consideration will be settled with 10.8m Reach

shares valued at NOK 1.75.

Simultaneously, NEC/Accello has subscribed for 14.3 million shares at NOK 1.75

per share in Reach's contemplated private placement (see separate stock exchange

release from Reach for further details). A condition for the completion of the

Accello acquisition is the successful completion of Reach's contemplated private

placement.

The management team of North Advisors, who are also shareholders of Accello,

will not sell its shares and shareholder loans to NEC.

Post completion of the Accello acquisition and Reach private placement, selling

shareholders of Accello will be direct shareholders of Reach, while Accello will

own approximately 30% of Reach.

North's CEO Knut Sæberg, says: "This investment is in line with the new strategy

adopted at last year's EGM, which was to focus on strategic opportunities where

substantial influence and control can be exercised in other energy related

businesses. Reach is a company we know well, with a strong management team and a

flexible and scalable business model. As a new major shareholder, we look

forward to working closely with and supporting the Board and management in

pursuing value creative opportunities at the bottom of the cycle."

Further information from:

Knut Sæberg, CEO

(+47) 918 00 720 | Email: [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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