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30 Jun 2010 10:15
Embargoed for release: 1015 on 30 June 2010
Northern Petroleum Plc ("Northern", "the Group" or "the Company") AGM Statement
Northern Petroleum Plc (AIM:NOP), the independent oil and gas exploration, development and production company announces that at the Annual General Meeting ("AGM") held today, the Chairman of the meeting, Richard Latham will make the following statement:
"We have initiated a change of strategy to increase activity and greater progress in realising the potential of our assets. An emphasis is placed upon drilling prospects in The Netherlands and undertaking a large offshore seismic survey in Italy to de-risk the very high potential value of the licences, making them more attractive for major oil industry players to farmin and thereby bringing forward the drilling activities. The Company will also participate alongside Tullow, Shell and Total in drilling of one or more wells in an exploration licence offshore Guyane (Northern:1.25% interest).
"Northern has implemented a three phased programme to increase funds for these initiatives:
* A £10 million placing of new shares; * A Netherlands production based loan facility ring fenced to the country; and * The sale of UK assets, including 6.82 million barrels of Proven and probable oil reserves, now considered non-core.
"Northern has instructed Envoi Limited to realise the value of its non-core UK assets. In the meantime, three wells are being planned in the UK, with construction of the Havant and Markwells Wood well sites now completed and ready to drill.
"Discussions have been in progress towards the granting of a loan facility to enable the faster development of The Netherlands reserves based upon the security of the local asset base and new production revenues. We are optimistic as to a successful conclusion. In June this year, we successfully placed of 11,764,706 new Ordinary Shares of 5 pence each at 85p per new Ordinary Share raising £10 million of gross proceeds. .
"In summary your Company is well capitalised with approximately EUR23 million of cash, and has the prospect of a Netherlands loan facility and potential funds from the sale of UK assets.
"With our large asset base with over 100 million barrels of independently assessed reserves and new production on-stream in The Netherlands, I would like every shareholder to leave this meeting knowing that their Company has embarked upon an exciting new phase of accelerated growth."
In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and signed off by the Exploration and Technical Director of Northern, Mr. Graham Heard CGeol. FGS, who has over 35 years experience as a petroleum geologist.
- ENDS -
For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7469 2900 Derek Musgrove, Managing Director Chris Foss, Director of Legal & Corporate Affairs Graham Heard, Exploration & Technical Director Nigel Wright, Finance Director
Sophie Hull, Head of Corporate Communications
Cenkos Securities (NOMAD and Joint Broker) Jon Fitzpatrick Tel: +44 (0) 20 7397 8900 Jefferies International (Joint Broker) Tel: +44 (0) 20 7029 8000
Chris Snoxall Financial Dynamics Tel: +44 (0) 20 7831 3113
Billy Clegg / Edward Westropp
Bishopsgate Communications Tel: +44 (0) 20 7562 3350 Nick Rome / Michael Kinirons
About Northern
Northern Petroleum Plc is an independent oil and gas Exploration Company listed on the AIM market in London focused on the European Union and nearby areas.
Comprehensive information on Northern and its oil and gas operations, including all press releases, annual reports and interim reports are available from Northern's website at www.northpet.com.
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