25 Jun 2007 09:34
25 June 2007 Northern Petroleum Plc ("Northern" or "the Company") Award of Two Offshore Licences with Three Oil Discoveries
Northern announces that it has been notified of the final award of licences FR.39.NP and FR.40.NP in the southern Adriatic, offshore Italy, (previously d57F.R-.NP and d58F.R-.NP). The licences contain three existing oil discoveries, Giove, Medusa and Rovesti in the Southern Adriatic near the Aquila oil field.
The Giove and Medusa oil and gas discoveries were drilled by Enterprise Oil during a period of low oil prices. These discoveries now require reappraisal in the light of current oil prices and recent advances in development technology.
The two wells, Giove-1 and Giove-2 established a 183 metre, (602 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.
Work will immediately be undertaken to verify the oil in place volumes and establish the potential reserves of the Giove discovery prior to planning appraisal wells, to be designed as capable of production in a rapid oil development utilising a Floating Production, Storage and Offloading vessel. The nearby Medusa discovery will be considered for a tie back to the Giove facilities.
Independent engineers have been commissioned to review the Giove and Medusa discoveries to verify the reserve potential and the development options. Analysis of the Rovesti oil discovery will follow. Northern Petroleum (UK) Limited holds a 100% interest in the licences but a subsidiary of ATI Oil Plc, in which Northern holds a 37.75% equity interest, has a 50% pari-passu commercial interest in both licences, giving Northern a net beneficial interest of 68.88%.
Derek Musgrove, Managing Director, stated:
"These offshore licences are in a core area for Northern. The Durres Basin extends from southeast Italy across the Adriatic to the oil provinces of Albania and Montenegro. We will now progress with the appraisal of the existing oil discoveries, that have the potential to transform the booked reserves and production revenues of Northern and to work further on the many already mapped leads and prospects that encouraged us to apply for these two and three further applications in the area.
"We expect to be able to progress these first two licences with strategic par tners providing technology, drilling and facilities to the project in return for a reduction in our equity or future production share, thereby reducing our equity capital requirements for appraisal and development.
"The awards have been long awaited, but are assets of high potential and so are to be pursued with vigour. I hope that shareholders may appreciate my excitement for a project that has taken over two years to reach this stage. I can now at last say let's go!"
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 Plc Tel: +44 (0) 20 7743 6080
Derek Musgrove, Managing Director
Chris Foss, Finance Director
Graham Heard, Exploration and 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
Northern Petroleum Plc is AIM listed with core interests under its management in The Netherlands, Italy and the United Kingdom.
The Company has the second largest exploration position in Italy in terms of licences under management. Most of the Company's licences are offshore, thus wisely avoiding the current environmental opposition in Tuscany and onshore Sicily where the Company is not present. Italy is the third largest European oil and gas producer. Activities will pick-up as the result of the extra funds now available through the recently announced ¢â€š¬40 million deal with Dyas, the largest private company in The Netherlands and with whom Northern has entered into a Strategic Alliance for new exploration ventures outside The Netherlands.
In The Netherlands, where the Company is the second largest owner of onshore reported oil and gas reserves, it is currently undertaking a programme to place two oil fields and four gas fields into production. Works on the first two, Ottoland and Brakel are currently underway.
The Company has recently acquired the management interests in the producing Waalwijk gas field where it intends to implement plans to increase late phase gas production consider developing a 30 Bcf underground gas storage facility alongside Star Energy and Essent.
An interest in the P12 producing offshore gas field was also acquired earlier this year.
In addition the Company has announced plans to drill a projected eastward extension of the producing Horndean oil field and a further exploration well in the West Sussex and is a partner in the Avington oil discovery in Hampshire where an intended production well is currently drilling..
A 15.2 % interest in the Company has been acquired recently by the New York based hedge fund, Harbinger Capital Partners.
Further information on Northern is available at www.northpet.com.
NORTHERN PETROLEUM PLC