4 Dec 2008 07:05
Embargoed for release: 0705 on 04 December 2008
Northern Petroleum Plc ("Northern" or "the Company") Agreement with ATI Oil Plc
Northern announces that it has signed a binding Heads of Agreement with ATI Oil Plc ("ATI"), the principle terms of which are as follows:
* A subsidiary of ATI will assign to Northern Petroleum (UK) Limited ("NPUK") its entire economic interest in exploration licences G.R17.NP, G.R18.NP, G.R19.NP, G.R20.NP, G.R21.NP and G.R22.NP in exchange for a 1.5% gross overriding royalty over 30% of NPUK's post farmout percentage in the six licences; * A subsidiary of ATI will assign to Northern Petroleum (UK) Limited ("NPUK") 40% of its economic interest in exploration licence C.R147.NP, reducing its economic interest to 10%; and * Northern will extend the existing ‚£2 million loan facility to ATI until 31 December 2011 at a fixed interest rate of 8.125%.
Relationship between Northern and ATI
Northern currently has a 37.05% shareholding in ATI and Derek Musgrove and Chris Foss, directors of Northern, are also directors of ATI. The Directors of Northern who are independent of ATI, having consulted with Northern's nominated adviser, Investec, consider the provision and terms of the agreement are fair and reasonable insofar as Northern's shareholders are concerned.
---ENDS--- Northern Petroleum Plc Tel: +44 (0) 20 7469 2900Richard Latham, Chairman
Graham Heard, Exploration & Technical Director
Investec Tel: +44 (0) 20 7597 5000Michael Ansell / Patrick RobbBlue Oar Tel: +44 (0) 20 7448 4400Jerry KeenBishopsgate Communications (Press) Tel: +44 (0) 20 7562 3350
Nick Rome / Maxine Barnes
Buchanan Communications (Analysts) Tel: +44 (0) 20 7466 5000Tim Thompson / Ben RomneyNotes to Editors:
Northern has recoverable Proven and Probable reserves of 76.5 million barrels of oil equivalence.
It is the Netherland's second largest onshore oil company in terms of oil and gas reserves, 45.5 million boe recoverable. It is currently producing gas at Waalwijk and the offshore P12 fields. The planned development of six onshore oil and gas fields is being progressed through the Netherlands authorisation and planning processes. Partners in these projects include Dyas B.V., EBN and NAM (the joint Shell ExxonMobil company). Northern recently sold its interest in the Waalwijk UGS application for an overall consideration of ‚£10 million.
Northern manages the largest licensed exploration area in Italy, over 13,000 km ‚², predominantly offshore but includes seven licences in the Po Valley oil and gas province in the north of the country where the drilling of the Savio 220 bcf gas prospect is being progressed. Through its holdings in licences in the southern Adriatic covering the Rovesti and Giove oil discoveries it has net Probable oil reserves independently assessed at 26.6 million barrels recoverable.
Northern is also a significant holder of licences in the south of England where it has a 10% interest in the production from the Horndean oil field and a 5% interest in the Avington development.
Further information on Northern is available at www.northpet.com.
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