North Energy Signs Agreement with Centrica to Sell Interest in Fogelborg

North Energy has entered into an agreement to sell its interest in licence 433 (Fogelberg) for NOK 70 million to Centrica Resources (Norway).

Production licence 433 contains the Fogelberg gas/condensate discovery proven in 2010. North Energy holds 12 per cent of the licence. In 2011 the licence partnership decided to concretize possible development solutions, which are expected to lead to a plan for development and operation within a few years.

– We are very pleased to have been involved in making a commercial discovery, and will use the added value that realized through this sale to create further value for our shareholders though our exploration activities on the Norwegian continental shelf. The sale demonstrates that our business model works, says CEO Erik Karlstrøm.

The effective date for the transaction is 1 January 2012 and the sales amount of NOK 70 million is after tax.

The sales amount is settled in cash at the time of completion. The completion, which is subject to approval by Norwegian authorities, is expected to take place in the second quarter of 2012.

A Energy has been North Energy’s advisor in this process.

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Offshore Nieuws Staff , February 10, 2012; Image: North Energy