Private placement in Front Exploration

Press release from Troms Kraft AS:

Front Exploration AS has completed a private placement of NOK 75 million with the Danish energy company DONG E&P Norge AS.

The investment is matured through discussions between Troms Kraft AS and Dong Energy AS in connection with DONG Energy’s sale of shares in Nordkraft AS and Salten Kraftsamband AS.DONG E&P Norge AS ownership is at 12,8 percent, and is the third largest shareholder in Front Exploration AS. Front Exploration is valued at NOK 510 million before the share issue.

“It is very satisfying that DONG E&P Norge AS becomes an owner in Front Exploration AS. For the Board and current owners, it has been important to find a long-term industrial owner”, says Chairman of the Board in Front Exploration AS, Tor Lægreid.

“This will result in a new and exciting phase for Front Exploration AS. We’ll gain important capital and industrial expertise, which will enable us to increase our efforts in the petroleum sector in the High North”, says CEO of Front Exploration AS, Yngve Vassmyr.

Front Exploration AS has 12 licenses on the Norwegian Continental Shelf and will participate in several exploration wells with high probability of success. The first exploration well will be drilled in autumn 2011 on the “Heilo” prospect that is located between the Goliat and the Nucula oil discoveries. Both Goliat and Nucula are situated outside the coast of Finnmark. The Company has offices in Tromsø, and has 20 employees. The Company is owned by Sparebanken Nord-Norge Invest AS (40,7 percent), Troms Kraft Invest AS (39,4 percent) and DONG E&P Norge AS (12,8 percent).