11 Sep 2007 07:00
11 September 2007 Northern Petroleum Plc ("Northern" or "the Company")
Northern Awarded Italian Licences as Corporate Activity in the Region Escalates
Northern is pleased to announce that its wholly owned subsidiary, Northern Petroleum (UK) Limited ("NPUK"), has been advised of the preliminary award of two offshore Italian licences, covering 1469 km‚², of which it is the operator. The licences confirmed are d61F.R-.NP and d149DR-.NP in the Southern Adriatic. Northern has been invited to prepare the necessary environmental impact studies on these preliminary awards.
The two offshore Adriatic licences are adjacent to licences FR39.NP and FR.40.NP which contain three oil discoveries: Rovesti, drilled by Agip in 1978; Medusa, drilled by Enterprise Oil in 1996; and Giove, drilled by Enterprise Oil in 1998. The Giove-1 wells established a 183 metre (600 foot) hydrocarbon column with a 92 metre (302 foot) oil leg of 16‚° API oil. Analysis at the time estimated the oil in place to be about 180 million barrels.
Independent engineers commissioned to review the Giove discovery to verify the reserve potential and the development options will soon report on their evaluation studies, with results likely to be announced later this month. Analysis of the Medusa and Rovesti oil discoveries will follow.
Recent bids by Cairn Energy Plc for MedOil Plc and Plectrum Petroleum Plc highlight the fact that big oil is waking up to the potential of the offshore Mediterranean region to host significant oil discoveries and develop further resources. Northern expects there to be further corporate activity in the region and is delighted that it has already established such a significant portfolio in prime locations.
NPUK holds a 100% interest in the licences awarded today but a subsidiary of ATI Oil Plc, in which Northern holds a 37.52% equity interest, has a 50% pari-passu commercial interest in both licences, giving Northern a net beneficial interest of 68.76%.
Northern is the operator of 24 licences, preliminary awards and uncontested applications in Italy, covering an area in excess of 13,000 km‚², being second to Eni in acreage under management in Italy.
Derek Musgrove, Managing Director of Northern said: "The preliminary award of these licences, adjacent to the discoveries being planned for appraisal and FPSO development, provides exciting potential in a region that will become another core area for Northern. We expect that the five contiguous licences and preliminary awards in the Southern Adriatic to contain the potential to transform the value of the Company. The area has seen no activity since the earlier successes of Enterprise Oil in the late 1990s, in an era of significantly lower oil prices."
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 30 years experience as a petroleum geologist.
For further information please contact:
Northern Petroleum PlcDerek Musgrove, Managing DirectorChris Foss, Finance DirectorGraham Heard, Exploration and Technical DirectorTel: +44 (0)20 7743 6080InvestecMichael Ansell / Paul BrettTel: +44 (0) 20 7597 5000Panmure Gordon & CoKatherine Roe / Ashton ClanfieldTel: +44 (0)20 7459 3600Bishopsgate Communications LimitedMaxine Barnes / Nick RomeTel: +44 (0) 20 7562 3350
NORTHERN PETROLEUM PLC