LONDON (Alliance News) - Northern Petroleum PLC Wednesday said its environmental impact assessment for the acquisition of 3D seismic data across the Giove undeveloped oil discovery and the Cygnus exploration prospect has been approved by the Italian regulatory authorities.
In addition, environmental impact assessments for two of the company's exploration permit applications in Italy have also been approved.
"The company has been working with the appropriate authorities in Italy to progress its permits and applications, and has refrained from discussing the opportunities until tangible progress has been made," said Chief Executive Keith Bush.
The environmental impact assessment has been approved for the acquisition of 3D seismic within the company's wholly owned F.R39.NP and F.R40.NP licenses. The Giove oil discovery on F.R40.NP has 2C contingent resources of 25.8 million barrels of oil and the Cygnus exploration prospect on F.R39.NP has mean un-risked prospective resources of 446.0 million barrels. The two other exploration permit applications are contiguous to the two licenses.
2C resources are the best estimate of contingent resources. The Giove discovery resource was upgraded from 2P resources, which are proven and probable reserves, to 2C reserves in 2013.
Before it acquires the 3D seismic, Northern Petroleum will seek a farm-in partner for the two license areas.
"The Italian portfolio continues to be a core area for Northern and the possibility of value being realised over the short and medium term from these assets has significantly improved," Bush added.
Northern Petroleum shares were down 0.5% to 8.21 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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