North Energy looking at all options as oil downturn continues

North Energy ASA

12/11/2015 09:40

* On track to complete restructuring process 
    * Drill or drop decision on 16 licences in next 12 months 
    * Net loss increased in the third quarter 
 
    OSLO, Nov 12 (Reuters) - Norwegian oil explorer North Energy 
 NORTH.OL  is looking at all options to boost shareholder value, 
which could include mergers and asset sales, as low oil prices 
continue to hurt results, it said on Thursday, alongside a wider 
quarterly loss. 
    The firm said it was on track to complete a restructuring 
started at the end of last year to adapt to worsening market 
conditions and disappointing drilling results. 
    Currently, the company has no firm plans to drill new wells, 
but expected drill or drop decisions on 16 out of 21 licences to 
be taken over the next 12 months. 
    "We're continuing our efforts to adapt to the demanding 
market conditions. The threshold for investment commitments will 
be high, and our future exploration wells must satisfy stringent 
requirements for swift commercialization", acting chief 
executive officer Knut Saeberg said in a statement. 
    "We have also been hit by the dramatic fall in the oil 
price. However we have met this by responsible cost cut 
initiatives", he said during the firm's third-quarter results 
presentation, referring to a 70-percent reduction in operational 
expenses compared to 2014. 
    The firm said its main focus now was to demonstrate value 
creation for its shareholders.  
    "We are evaluating all options with a clear goal to lock up  
the inherent values we feel lies in North Energy as a company", 
Saeberg said. 
    In the third quarter, the company reported a net loss of 
32.9 million Norwegian crowns ($3.8 million), compared with 31.8 
million a year earlier.   
    ($1 = 8.6752 Norwegian crowns) 
 
 (Reporting by Henrik Stolen; Editing by Mark Potter) 
 ((henrik.stolen@thomsonreuters.com; +47 952 79 474; Reuters 
Messaging: henrik.stolen.thomsonreuters.com@reuters.net)) 
 
Keywords: NORTH ENERGY RESULTS/