26 Oct 2007 07:00
Embargoed for release: 0700 on 26 October 2007
Northern Petroleum Plc ("Northern" or "the Company") Extension of Loan Facility to ATI Oil Plc
Northern announces that it has signed an addendum to its loan agreement with ATI Oil Plc ("ATI") dated 30 October 2006. Northern has increased the ATI finance facility by ‚£250,000 to ‚£2,000,000. The facility is secured over certain of ATI's assets, including its 50% interests (Northern 50% and operator) in the FR.39.NP and FR.40.NP licences in the southern Adriatic, which contain three existing oil discoveries, Giove, Medusa and Rovesti. The Giove discovery has recently been assessed by independent consultants as having 19.67 million barrels of P2 reserves, suggesting NPV10 values for the oil field of US$261 million at US$70 Brent and US$177 million at US$60 Brent. The assessment of the reserve potential of the Rovesti discovery is underway.
As at the date of this announcement ATI has utilised ‚£1,500,000 of the facility. All funds drawn down under the terms of the facility will now become repayable to Northern in full on or before 31 May 2008, a six month extension. In consideration for extending the loan facility Northern will also receive an additional fee, but other than detailed herein the terms and conditions of the original loan agreement remain in force.
Relationship between Northern and ATI
Northern currently has a 37.08% 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 extension of the facility are fair and reasonable insofar as Northern's shareholders are concerned.
For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7743 6080
Richard Latham, Chairman
Graham Heard, Exploration & Technical Director
Investec Tel: +44 (0) 20 7597 5000
Michael Ansell / Paul Brett
Panmure Gordon & Co Tel: +44 (0) 20 7459 3600
Katherine Roe / Ashton Clanfield
Bishopsgate Communications Limited Tel: +44 (0) 20 7562 3350
Nick Rome / Maxine Barnes
NORTHERN PETROLEUM PLC