North Energy has signed an agreement with Lundin Norway whereby North E&P will sell its 40% working interest inPL 805 (7120/2, -3, 7121/1 i Barentshavet) to Lundin Norway.
After the sale of PL 805, North E&P has no further licenses on the Norwegian Continental Shelf . Consequently, the Board of Directors of North Energy has decided to discontinue the petroleum activities in its subsidiary North E&P and to seek cash reimbursement of the company’s offshore tax losses.
“The business model for small exploration companies has in recent years been challenged by the significant drop in the oil price. The activity level on the NCS has come down, and many players have withdrawn from exploration. With no clear signs of improved market fundamentals, the Board of North Energy believes that it is now in the best interest of the company’s shareholders that North E&P exits its petroleum activities on the NCS,” says Chairman of the Board, Anders Onarheim.