North Energy has sold its last remaining licence on the Norwegian Continental Shelf to Lundin Petroleum.
The sale of North Energy’s 40% working interest in PL 805 means that all petroleum activities by subsidiary company North E&P have ceased.
Although the subsidiary will go into liquidation, the company say its other investment outside the Norwegian Continental Shelf, valued at NOK 114 million, will continue unhindered.
North Energy chairman Anders Onarheim said: “The business model for small exploration companies has in recent years been challenged by the significant drop in the oil price.
“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.”
The current net cash position of North E&P is NOK 245 million, but the final proceeds from the liquidation are dependent on closing costs and the Norwegian Oil Taxation Office’s final assessment.