23 Mar 2010 07:00
23rd March 2010 Northern Petroleum Plc ("Northern" or "the Company")
AWARD OF ZUID-FRIESLAND III PRODUCTION LICENCE AND ACQUISITIONS OF INTERESTS
Northern announces that the Ministerie van Economische Zaken ("EZ") has awarded the Zuid-Friesland III Production Licence to Nederlandse Aardolie Maatschappij BV ("NAM"), Total, Petro-Canada and Dyas. The licence is for a period of 25 years and covers 104.6 km² in the Province of Friesland, The Netherlands.
The licence area includes two gas fields; namely Oppenhuizen and Woudsend. Oppenhuizen-1 was drilled in 1972. The well discovered gas in the Zechstein 2 Carbonate and tested initial rates of 400,000 Nm³/d (15 mmscf/d). The well remains suspended. Woudsend-1 was drilled in 1987 and discovered gas in the Zechstein Carbonate but was not tested.
Under separate prior agreements, Northern Petroleum Nederland B.V. ("NPN") will acquire NAM's and Dyas' working interests in the Licence and assume operatorship. After 40% participation by Energie Beheer Nederland B.V. ("EBN"), NPN's working interest is 44.34%. The transfers are subject to the usual Government consent.
NPN will develop each field according to the agreements and will receive out of cash flow from production 100% pay-back of its costs plus an uplift. After pay-back, operating cash flow will be split between NPN and NAM and Dyas under a profit share arrangement.
The unaudited estimate of the Gas Initially in Place (GIIP) of the two fields is a combined 2.88 BNcm (107 Bscf) with expected recovery factors of the order of 60%.
"Northern is delighted with the announcement of the award of this licence with the acquisition of two further field development projects. This represents the results of much ground work by Northern and is a very welcome increase to NPN's growth plans for the onshore Netherlands adding to the two gas fields placed on production in 2009,and the current developments of the Brakel, Ottoland, Papekop and Wijk and Aalburg fields. It is an endorsement of our strategy." commented Derek Musgrove, Managing Director, Northern Petroleum Plc.
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 Petroleum Plc, Mr Graham Heard CGeol FGS, who has over 35 years experience as a petroleum geologist.
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For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7469 2900Derek Musgrove, Managing DirectorChris Foss, Finance DirectorGraham Heard, Exploration & Technical DirectorSophie Hull, Head of Corporate CommunicationsBrokers to the CompanyJefferies International Limited Tel: +44 (0) 20 7029 8000
Chris Snoxall / Schuyler Evans
Astaire Securities Tel: +44 (0) 20 7448 4400Jerry Keen / Toby GibbsNotes to Editors:
Northern is an AIM quoted oil and gas production, development, exploration and asset trading company focused on petroleum producing areas of low political risk in Europe. The Company strategy is to obtain significant and concentrated licence positions then add value at reasonable risk utilising new ideas together with new drilling, seismic, completion, field development and computer technologies to establish economic oil and gas production.
The Company's activities are concentrated in three countries (The Netherlands, Italy and England) with the risk spread over more than 50 projects in 12 petroleum systems. Following the acquisition of ATI Oil Plc, Northern holds approximately 103 million barrels of reported Proven & Probable Reserves. It has interests in 6 producing fields, both onshore and offshore, three of which it manages.
The development of four onshore oil and gas fields is being progressed in The Netherlands under Northern management (Northern Petroleum Nederland B.V.) with Dyas B.V., EBN, the Netherlands' state oil company, and the NAM.
Northern currently manages the largest licensed exploration area in Italy, over 15,000km², predominantly offshore, but which includes five onshore permits in the Po Valley gas and oil province in the north of the country.
UK production comes from a 10% interest in the Horndean oil field and a 5% interest in the Avington oil field, in West Sussex and Hampshire respectively. It also has planning consents to drill in the near future an eastward extension of the Horndean oil field and an exploration well at Havant. Northern has a 50% interest in these ventures.
For further information on Northern visit www.northpet.com.
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