North Energy Asa · OSL:NORTH

North Energy Asa — Q3 2011 Earnings Presentation

27 slides from North Energy Asa's earnings presentation, Nov 9, 2011

1. Slide 1: North Energy Q3 2011

   North Energy Q3 2011 9 November 2011

2. Slide 2: Important information

   Important information This presentation and its appendices (together the “Presentation”) have been prepared and delivered by North Energy ASA (“North Energy” or the “Company”). The Presentation is prepared for information purposes only, and is not to be used for any other purpose. The Presentation d

3. Slide 3: Agenda

   Agenda  Highlights Q3  Financial update  Exploration update  Outlook & Summary North Energy ASA, Markedsgata 3, Alta, Norway. 3 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

4. Slide 4: Highlights Q3

   Highlights Q3  Disappointing wildcat well in the Barents Sea  The Heilo reservoir proved better than expected, however water filled  Increased volume estimate on Fogelberg  Conceptual studies ongoing  Promising results from internal Norvarg study  Expecting appraisal well Q4 next year  APA 20

5. Slide 5: Agenda

   Agenda  Highlights Q3  Financial update  Exploration update  Outlook & Summary North Energy ASA, Markedsgata 3, Alta, Norway. 5 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

6. Slide 6: North Energy ASA – Profit & Loss

   North Energy ASA – Profit & Loss Q3 Q3 YTD YTD MNOK 2011 2010 2011 2010  Exploration expenses NOK 85 million higher than Q3 2010 Payroll 19.8 16.0 54.5 46.0 Depreciation 1.8 1.1 5.0 3.1 Exploration expenses 114.5 29.1 142.0 60.4  Financial expenses up NOK 10 Other operating expenses 9.4 7.8 29.4 3

7. Slide 7: High activity level driving exploration costs

   High activity level driving exploration costs Exploration expenses Q3 MNOK  Drill decisions moving closer – Dry well PL 530 Heilo 29 increased need for seismic and data processing Seismic for Drill or Drop decisions *) 56 Regional study Barents Sea 8  Dry well at Heilo Uplift fee 8 General explora

8. Slide 8: North Energy ASA - Balance sheet

   North Energy ASA - Balance sheet YTD Year end Year end MNOK 2011 2010 2009  Fixed assets up NOK 260 million from year-end 2010 Assets Fixed Assets 419.4 161.9 32.6  Capitalized drilling costs on Long term receivables 363.2 0.0 0.0 Fogelberg and Norvarg Short term receivables 498.1 385.5 164.0 Cash

9. Slide 9: Net cash according to plan

   Net cash according to plan Net cash position as of Q3 2011 31  Net cash position of NOK 238 million 363 450  NOK 310 million undrawn of NOK 760 million exploration 238 financing facility 350  Developing in line with funding plans at 6 the IPO Cash 2011 Tax 2012 Tax Net working Interest- Net cash

10. Slide 10: Next 4 wildcat wells financed

    Next 4 wildcat wells financed  NOK 670 million raised before and NOK million in the IPO 700 Acc. capital injection  NOK 270 million raised from Acc. expenses 650 600 investors in Northern Norway 550 500  NOK 432 million invested since 450 start up in 2007: 400  Organization, systems and 350 netw

11. Slide 11: Agenda

    Agenda  Highlights Q3  Financial update  Exploration update  Outlook & Summary North Energy ASA, Markedsgata 3, Alta, Norway. 11 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

12. Slide 12: Strong track record and exciting outlook

    Strong track record and exciting outlook PROSPECTS PRE-DRILL ESTIMATES POST-DRILL ESTIMATES License Prospect Equity Gross POS Net risked Well result Gross Net interest unrisked (P50) (P50) DRILLED WELLS PL 433* Fogelberg 12% 196 57% 13 Gas / condensate 68 8 PL 341 Stirby 11% 97 30% 3 Dry - - 50% suc

13. Slide 13: Drawing lessons from dry Heilo well

    Drawing lessons from dry Heilo well  Better reservoir quality than expected, however water filled Heilo Head (prospect)  No oil shows in cuttings  Oil still believed to have passed Heilo North (prospect) through the Heilo area and into Nucula (geochem correlation) Heilo South (dry)  Migration ro

14. Slide 14: Increased volume estimate on Fogelberg

    Increased volume estimate on Fogelberg 09.11.11 Feasibility Conceptual Detailed Engineering, Pre-engineering Production Production Studies Studies Construction, Start-up BOK BOV PDO  Resource estimates recently 97 updated by the operator Operator’s first estimate 90  Centrica increased the P50 Nor

15. Slide 15: Increased expectations to Norvarg

    Increased expectations to Norvarg 09.11.11 Feasibility Conceptual Pre- Detailed Eng, Appraisal Production Studies Studies engineering Construction BOK BOV PDO  Increased expectations to Norvarg 500 volumes Operator’s first estimate  Results from internal Norvarg North Energys GeoX estimate Operato

16. Slide 16: Positive regional effects of Norvarg

    Positive regional effects of Norvarg  Break through gas production test from the Kobbe formation  Has lifted the potential in large areas towards the north and east  Future exploration success depends on differentiating between good and bad Triassic Short term investment return targets Good  Add

17. Slide 17: PL 518 Zapffe – drilling ongoing

    PL 518 Zapffe – drilling ongoing PL 518 / PL 518 B in the Barents Sea Award APA 2008 Main prospect Zapffe Operator DONG (40%) Hydrocarbons Oil Partners North Energy (30%) Expected drilling Q4 2011 Front Exploration (20%) PoS 25% Valiant Petroleum (10%) Gross mean unrisked 280 mmboe Net mean risked 2

18. Slide 18: PL 450 Storebjørn – high PoS oil prospect

    PL 450 Storebjørn – high PoS oil prospect PL 450 in the North Sea Aquired 2011 Main prospect Storebjørn Operator Det norske (60%) Hydrocarbons Oil Partners North Energy (15%) Expected drilling Q1 2012 Dana Petroleum (25%) PoS 49% Gross mean unrisked 141 mmboe Net mean risked 10 mmboe Work plan Repro

19. Slide 19: PL 370 / PL 370 B Kakelborg – drilling in Q1 2012

    PL 370 / PL 370 B Kakelborg – drilling in Q1 2012 PL 370 / PL 370 B in the North Sea Aquired 2011 Main prospect Kakelborg Operator Wintershall (40%) Hydrocarbons Oil Partners North Energy (10%) Expected drilling Q1 2012 Agora (30%) PoS 30% Concedo (20%) Gross mean unrisked 108-256 mmboe Net mean ris

20. Slide 20: PL 385 Jette – drilling expected mid 2012

    PL 385 Jette – drilling expected mid 2012 PL 385 in the Norwegian Sea Aquired 2009 Main prospect Jette Operator Statoil (45%) Hydrocarbons Gas cond. Partners North Energy (35%) Expected drilling Q2/Q3 2012 Noreco (20%) PoS 37% Gross mean unrisked 95 mmboe Net mean risked 12 mmboe Work plan Drill one

21. Slide 21: PL 498 Skagen – drilling in 2012

    PL 498 Skagen – drilling in 2012 PL 498 in the North Sea Aquired 2009 Main prospect Skagen Operator Lotos (25%) Hydrocarbons Oil Partners North Energy (25%) Expected drilling 2012 Edison Int. (25%) PoS 36% Skagen 44 (25%) Gross mean unrisked 75 mmboe Net mean risked 7 mmboe Work plan Drill one well

22. Slide 22: Exploration track record and outlook

    Exploration track record and outlook mmboe 130 120 110 100 90 80 70 60 50 40 30 20 10 0 Fogelberg* Stirby Norvarg** Heilo Zapffe Storebjørn*** Kakelborg Jette Skagen Scarecrow**** Net unrisked pre-drill volume (completed wells) Accumulated, net pre-drill volume (risked) Net unrisked pre-drill volume

23. Slide 23: Drilling program with timing uncertainties in 2012

    Drilling program with timing uncertainties in 2012 Zapffe Storebjørn Kakelborg Skagen Jette Norvarg, appraisal Scarecrow 2011 I 2012 I 2013 Possible Oil appraisal oil Gas-Condensate North Energy ASA, Markedsgata 3, Alta, Norway. 23 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@nor

24. Slide 24: Agenda

    Agenda  Highlights Q3  Financial update  Exploration update  Outlook & Summary North Energy ASA, Markedsgata 3, Alta, Norway. 24 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

25. Slide 25: Outlook

    Outlook  6 months outlook  Result from the Zapffe exploration well in the Barents Sea (ongoing)  Storebjørn exploration well in North Sea  Kakelborg exploration well in the North Sea  Decision on appraisal program for Norvarg  Drill or drop decision on PL 510 Scarecrow  APA 2011 award  12 mo

26. Slide 26: Summary

    Summary  Disappointing wildcat well in the Barents Sea  Increased volume estimate on Fogelberg  Promising results from internal Norvarg study  Strong track record after 4 wells  5 firm wells planned for the next 12 months  Selective application in the APA 2011 round  Strong financial position

27. Slide 27: Thank you for your attention!

    Thank you for your attention! North Energy ASA, Markedsgata 3, Alta, Norway. 27 Phone: (+47) 78 60 79 50 · Fax: (+47) 78 60 83 50 · E-Mail: post@northenergy.no · www.northenergy.no

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