North Energy has brought in new capital in the past week. The private placement and sale of the Fogelberg licence means that the company is well financed for further exploration.

The company has brought in a total of NOK 235 million through the processes.

The issue received good support from the existing major shareholders, as well as broad interest from new shareholders. North Energy acquired 150 million in gross proceeds through a private placement of 15 million new shares with a par value of NOK 1 at a price equivalent to NOK 10 per share. In addition, the sale of the share in the Fogelberg gas/condensate discovery provided NOK 70 million in new capital.

DNB markets and Pareto Securities were contracted by the company to carry out the offering. In total the issue has resulted in 54 new owners. Several major funds have come in as owners. The company will also carry out a subsequent issue which is estimated to constitute up to 1.5 million new shares at the same price, NOK 10 per share.

The goal of the issue has been to raise funds for continued exploration. The issue also entails that the company has the funds to continue the programme with four wells in 2013 as well – and not least – have the opportunity to participate in the appraisal well at Norvarg in the Barents Sea.

In a comment, CEO Erik Karlstrøm says that the company previously has made two promising discoveries, and has demonstrated its business model by realizing the value of Fogelberg.

-          We have started an exciting drilling campaign this year with startup of drilling at Storebjørn, and we are continually working on extending the drilling programme for 2013. Our cash balance has been significantly strengthened through the acquisition of new equity, as well as a recent sale of assets. The company is thus well financed for future exploration, says Erik Karlstrøm.

An extraordinary general meeting has been called on 2 March 2012 to approve the issuance of the shares.