North Energy – Q4 presentation

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Agenda

• Q4 highlights

• North Energy – licenses to be drilled

• Financials

• Outlook and summary

• Appendixes

3

Q4 highlights• Acquisition of 4sea energy

Capital from industrial investors with extensive experience from Norwegian oil business Two licenses in the North Sea with interesting exploration acreage

• Acquisition of 15% in PL 385 from Statoil In an area of several discoveries in the Norwegian Sea Expected to drill end of 2010. Statoil is license operator

• Listing at Oslo Axess and preparations for IPO North Energy transformed to ASA “Allmennaksjeselskap” Application for listing approved by Oslo Børs

• New board member Guri H. Ingebrigtsen, former major of the largest municipality in Lofoten and former

Minister of Social Affairs

• Q4 results Net result for the period of NOK – 8,3 million (-13,6) Net cash position as per end 2009 of NOK 150 million (105)

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Main events after Q4

• IPO successfully completed 3 February 2010 Equity strengthened by NOK 400 million Exploration program of 8 wells fully funded North Energy listed at Oslo Axess at 5 February 2010

• 3 licenses awarded in APA 2009 30% interest in PL 518B in Barents Sea 20% interest In PL 564 in the Barents sea 10% interest in PL 562 in the Norwegian Sea

• Drilling commenced at Fogelberg 11 February

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Agenda

• Q4 highlights

• North Energy – licenses to be drilled

• Financials

• Outlook and summary

• Appendixes

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Operational targets• Build a portfolio of between 14 and 16

licenses before the end of 2010• Existing portfolio: 13 licenses1

• Acquisitions/farm-ins: Up to 3 licenses

• Drill a minimum of 8 wildcat wells before the end of 2012

• Total net risked mean resource base of 201 mmboe in current portfolio

Current well program

Fully funded exploration program

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Well Prospect Licence Interest 2010 2011 2012 

1 Fogelberg PL 433 12 %     

2 Farm-in X n/a n/a     

3 Jette PL 385 15 %  

4 Heilo PL 530 20 %       

5 Tana PL 518 30 %       

6 Norvarg PL 535 20 %         

7 Vågar PL 526 40 %      

8 Award Y n/a n/a    

February 2010

Q42010

Rig: West Alpha

Rig: TBA (Statoil rig pool)

  Firm well

  Future farm-in with firm well

  Likely well (drill-or-drop)

1) Including three licenses offered in the APA 2009 round announced on 19 January 2010

Norwegian Sea license map

Two firm wells in the Norwegian Sea in 2010

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• Two licenses with firm wells close to infrastructure

• Net risked mean resources of 105 mmboe in Norwegian Sea portfolio

• 49% historic discovery rate in Lower-Middle Jurassic plays on the Halten/Dønna Terraces

• Processing and transport capacity available from 2014

• Fast track access for high liquid content discoveries

Firm wellLower and Middle Jurassic Plays

Licence Interest Operator Main target

PL 385 15% Statoil Jette

PL 433 12% Centrica Fogelberg

PL 510 20% Centrica Dorothy/Toto

PL 526 40% North Energy Vågar

PL 562 10% Dana Lepus

Barents Sea license map

Three firm wells in the Barents Sea in 2011

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• Three firm, high impact wells in 2011

• Net risked mean resources of 83 mmboe in Barents Sea portfolio

• 59% historic discovery rate in Lower-Middle Jurassic plays in the Hammerfest Basin

• Processing and transport capacity available through Goliat from 2015

• Some gas offtake capacity from 2015 and larger volumes from 2017 through Snøhvit LNG

Firm wellLower and Middle Jurassic Plays

Licence Interest Operator Main target

PL 518 30% DONG TanaPL 518B 30% DONG OmegaPL 530 20% GDF Suez HeiloPL 535 20% Total NorvargPL 536 20% Statoil ElbrusPL 564 20% OMV Alta

Fogelberg – first well to be drilled in Q1 2010

PL 433 in the Norwegian Sea

Acquired 2009 Main prospect Fogelberg

Operator Centrica (28%) Hydrocarbons Gas Cond.

Partners North Energy (12%) Expected drilling Q1 2010

Faroe Petroleum (15%) Prob. of success 57%

E.ON Ruhrgas (15%) Gross mean unrisked

196 mmboe

Petro-Canada (30%) Net mean unrisked 24 mmboe

Workprogram

Drill one firm well

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• PL 433 is located on the Halten Terrace within 20 km of the Åsgard B platform

• The Fogelberg prospect contains multiple targets

• The Åsgard Transport System is capacity constrained for gas; high liquid (gas/condensate) discoveries given priority

Top Garn Fm

6506/9-2 6506/12-12A, S

NE

510

b

A B

S (

TW

T)

2500

3000

3500

4000

4500

Fogelberg, 4160m

Jette – second firm well in 2010

PL 385 in the Norwegian Sea

Acquired 2009 Main prospect Jette

Operator Statoil (45%) Hydrocarbons Gas Cond.

Partners North Energy (15%) Expected drilling Q4 2010

Wintershall (20%) Prob. of success 37%

Noreco (20%) Gross mean unrisked

95 mmboe

Net mean unrisked 14 mmboe

Workprogram

Drill one firm well

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• PL 385 is located on the Halten Terrace within 20 km of the Norne FPSO

• In addition to the Jette prospect with its multiple targets, the license also contains a series of leads

• According to Statoil, the operator of both Norne and PL 385, spare capacity will be available in 2014 for tie-ins to Norne; high liquid (gas/condensate) discoveries given priority

Heilo – first of three high impact wells in 2011

PL 530 in the Barents Sea

Awarded 20th round (2009) Main prospect Heilo

Operator GDF Suez (40%) Hydrocarbons Oil w/gas cap

Partners North Energy (20%) Expected drilling Q1 2011

Discover (20%) Prob. of success 39%

Rocksource (20%) Gross mean unrisked

308 mmboe

Net mean unrisked 62 mmboe

Workprogram

One firm well within two years and one contingent well

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• PL 530 is located along the southern flank of the Hammerfest Basin between the Goliat and Nucula discoveries

• The block was one of the most attractive blocks in the recent 20th licensing round

• If successful, several development solutions are available incl. tie-back to the Goliat FPSO Hammerfest

0 10km

71217120 7122 7123 7124 7125

ALKE NORD

ALKE SØR

ASKELADDALB ATROSS

TORNEROSESNØHVI T

BAMSE

NUCUL A

GOLI AT

PL530

NE

19

c

gasoilprospectpipeline

NE

509

b

BA

S (

TW

T)

Seabed0.500

1.000

1.500

2.000

2.500

Heilo ,1270m

A

B

7123/6 7124/4

FinnmarkSouth Lead

Heilo ProspectToppdykker Lead

7123/97123/8 7124/4 7124/8

7123/5 7124/5

71°30 ’

71°45 ’

23°40 ’ 24°00 ’ 24°20 ’

0 5km

Agenda

• Q4 highlights

• North Energy – licenses to be drilled

• Financials

• Outlook and summary

• Appendixes

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Profit & Loss Q4 2009

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4Q 4Q Year YearMNOK 2009 2008 2009 2008

Payroll 17,7 25,5 62,4 42,0 Adjustments in Q4/08 of MNOK 6Depreciation 1,9 0,1 3,4 2,0Exploration expenses 24,1 16,1 113,1 62,8 Licenses from 2 (0) to 8 (1) in Q4/09Other operating expenses 7,9 4,8 28,8 34,0Operating profit 51,5 47,1 207,6 140,8

Finance income -3,3 -1,8 -4,3 -1,9Finance costs 1,1 1,4 5,1 1,4Net financial items -2,1 -0,4 0,8 -0,5

Profit before tax 49,4 46,7 208,4 140,3

Income tax -41,1 -33,0 -144,0 -101,0 Adj of 08-tax in Q4/09 of MNOK 8

Loss for the period 8,3 13,6 64,4 39,3Not audited

Balance Sheet 31.12.2009

31.12 31.12MNOK 2009 2008

AssetsFixed Assets 32,6 20,1Receivables 164,0 108,8 Tax receivables due Dec 2010 of MNOK 149Cash 45,7 13,3Total Assets 242,3 142,2

Equity and liabilitiesTotal equity 152,9 108,9Total long-term liabilities 6,1 1,8Total current liabilities 83,3 31,4 Interest bearing debt Q4/09 of MNOK 45Total liabilities 242,3 142,2

Total equity and liabilities 242,3 142,2Not audited

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Solid financial situation

Liquidity as of Q4 2009

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• The 4sea energy acquisition provides North Energy with NOK 40 million in cash and NOK 10 million in expected tax reimbursement

• Cash balance of NOK 46 million• Expected tax reimbursement of NOK 149 million • NOK 45 million drawn on a NOK 300 million exploration loan facility

with SEB

Net cash of NOK 150 million

• Equity strengthened by NOK 350 million• Exploration program fully funded before first well• Debt bridge funding of tax reimbursement

4sea energy acquisition

IPO successfully completed

Agenda

• Q4 highlights

• North Energy – licenses to be drilled

• Financials

• Outlook and summary

• Appendixes

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Outlook and summary

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• Targeting three exploration wells in 2010, two of which are already firm;• The Fogelberg prospect in Q1 2010 – 24 mmboe net unrisked mean• The Jette prospect in Q4 2010 – 14 mmboe net unrisked mean

• Uniquely positioned as a leading Northern Norwegian E&P player• Focused on high PoS prospects with short lead time to production

• 8 well exploration program fully funded through proposed equity issue

• Experienced management team

Sound business case

Near time news flow and upside

Medium and longer term activities

• Positioning North Energy towards the opening of Lofoten and Vesterålen• Prepare the local communities to take an active part in the future

development • Tailoring technology to protect the environment and present local

activities, i.e. fisheries

Agenda

• Q4 highlights

• North Energy – licenses to be drilled

• Financials

• Outlook and summary

• Appendixes

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Attractive prospect inventory

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License Equity Area Prospect Name OperatorProbability of

SuccessMain Hydrocarbon

PhaseGross Mean

Unrisked Net Mean

Risked        aggregated mmboe mmboe

Firm wells 2010 – 2012

PL 4331 12 % Norwegian SeaFogelberg (p. 20) Centrica 57 % Gas Condensate 196 13

PL 3852 15 % Norwegian SeaJette (p. 21) Statoil 37 % Gas Condensate 95 5

PL 530 20 % Barents SeaHeilo (p. 22) GDF Suez 39 % Oil with gas cap 308 24

PL 535 20 % Barents SeaNorvarg (p. 34) Total 29 % Gas 226 13

PL 518 30 % Barents SeaTana3 (p. 35) DONG 14 % Oil 440 18

Total 1,265 73

Drill-or-Drop 2010 – 2012

PL 498 25 % North SeaSkagen (p. 36) Lotos 36 % Oil 84 8

PL 510 20 % Norwegian SeaDorothy/Toto (p. 37) Centrica 54 % Gas Condensate 279 30

PL 526 40 % Norwegian SeaVågar (p. 38) North Energy 17 % Oil with gas cap 133 9

PL 536 20 % Barents Sea Elbrus (p. 39) Statoil 20 % Gas 289 11

PL 5644 20 % Barents SeaAlta (p. 40) OMV 24 % Oil with gas cap 155 8

Total 940 66

Additional resources (see appendix) 945 62Grand total 3,150 201

1) Carry of exploration costs (20.0% of which 12.0% own share)2) Carry of exploration costs (22.5% of which 15.0% own share)3) Operator’s main prospect and estimates4) Offered in the APA 2009 round announced on 19 January 2010

Total 20 largest shareholders as per 19 February 2010

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Name No of shares % of totUBS AG, LONDON BRANC S/A IPB SEGREGATED C 2 356 500 9,59 %SKS EIENDOM AS 1 824 920 7,43 %JPB AS 1 336 610 5,44 %ORIGO KAPITAL AS 1 248 100 5,08 %CITIBANK N.A. (LONDO A/C POHJOLA BANK PLC 840 000 3,42 %ONSHORE GROUP NORDLA 813 334 3,31 %IHM HOLDING AS 739 929 3,01 %STATE STREET BANK & A/C CLIENT FUND NUMB 706 400 2,87 %KAPNORD FOND AS 640 000 2,60 %CACEIS BANK S/A NON TREATY ACCOU 610 100 2,48 %ALTA KRAFTLAG A/L V/ HANS JOHNSEN 600 230 2,44 %THE NORTHERN TRUST C USL EXEMPT ACCOUNT 564 900 2,30 %IKM INDUSTRI-INVEST 545 648 2,22 %SKANDINAVISKA ENSKIL A/C FINNISH RESIDENT 529 500 2,15 %GOLDMAN SACHS INT. - SECURITY CLIENT SEGR 440 228 1,79 %LEONHARD NILSEN & SØ 431 210 1,75 %THE NORTHERN TRUST C NORTHERN TRUST GUERN 419 505 1,71 %MORGAN STANLEY & CO S/A MSIL IPB CLIENT 370 600 1,51 %BANK OF NEW YORK MEL TREATY ACCOUNT UNITE 316 500 1,29 %HELGELAND VEKST A.S 315 000 1,28 %Total 20 largest shareholders 15 649 214 63,68 %Other 8 925 967 36,32 %Total shares outstanding 24 575 181 100,00 %