30 Mar 2007 07:00
Embargoed for release: 0700 on 30 March 2007
Northern Petroleum Plc ("Northern" or "the Company") Award of Exploration Licence in The Netherlands and Drilling Operations Update
Northern Petroleum Plc, the oil and gas production, development and exploration company with core interests under its management in The Netherlands, Italy and the United Kingdom, announces a Netherlands licence award and provides a drilling operations update.
Oosterwolde exploration licence
The Netherlands Ministry of Economic Affairs has advised our wholly owned subsidiary Northern Petroleum Nederland B.V. ("NPN") that it has been awarded the onshore Oosterwolde exploration licence ("Oosterwolde").
NPN's application for Oosterwolde was published in April 2005. The licence surrounds the 1992 gas discovery at Oosterwolde-1, but excludes the area around that discovery. The licence will run for an initial period of five years from the date of publication of the final decree.
Operations Update - The Netherlands
Elsewhere in The Netherlands the Brakel gas well has been successfully re-entered, the downhole integrity tested and suspended. The planned re-perforation and testing will occur when suitable equipment is available and approvals are granted. This is scheduled in the second quarter this year.
The movement of the Drilltec Synergy drilling rig to the Ottoland oil and gas site to drill and test a lateral sidetrack from the discovery well remains on schedule for April 2007.
Operations Update - Spain
Northern holds a 1.25% Gross Overriding Royalty in the Hontomin-4 appraisal well currently being drilled by Ascent Resources Plc. The Hontomin oil discovery was last drilled and tested by Cairn Energy Plc in 1991, a time of lower oil prices.
Richard Latham, Chairman of Northern, commented:
"We are continuing with our strategy to build a core area in The Netherlands. The award of the Oosterwolde licence together with the recently announced acquisition of interests in the Waalwijk gas field and potential underground gas storage projects with Essent, represents the increasing fulfilment of that strategy.
"In Spain our residual gross overriding royalty allows us to participate in any revenues derived an old asset at no present or future cost. We look forward to the outcome of the current drilling with interest."
For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7743 6080
Derek Musgrove, Managing Director
Graham Heard, Exploration Manager
Investec Tel: +44 (0) 20 7597 5000
Michael Ansell / Paul Brett
Panmure Gordon & Co Tel: +44 (0) 20 7459 3600
Katherine Roe
Bishopsgate Communications Limited Tel: +44 (0) 20 7562 3350
Nick Rome / Maxine Barnes
Notes to Editors:
Northern Petroleum Plc is an oil and gas production, development and exploration company with core interests under its management in The Netherlands, Italy and the United Kingdom. Before the Waalwijk acquisition from Wintershall Noordzee B.V. announced on 27 March 2007 which brought in further gas production, the Company had published proven and probable reserves of 56 and 4.5 million barrels of oil equivalent in the Netherlands and UK respectively and is currently working towards putting its six Netherlands oil and gas fields into production with financial support from Standard Bank. The Shell/ExxonMobil subsidiary Nederlandse Aardolie Maatschapppij B.V. participates in five of the six Netherlands fields by way of a net profits interest. Further information on Northern is available at www.northpet.com.
NORTHERN PETROLEUM PLC