2 Jul 2014 07:00
Embargoed for release: 2 July 2014 at 07.00
Northern Petroleum Plc
("Northern Petroleum" or "the Company")
Canadian operations and production update
Northern Petroleum, the AIM quoted oil company focusing on production led growth, provides the following operations and production update on the Virgo redevelopment project in north west Alberta, Canada.
Highlights
§ Workover of well 16-19 to run cemented liner and perforate over the reservoir section successfully completed ahead of schedule
§ 16-19 now producing at between 100 and 140 bopd on restricted flow rate
§ 14-22 temporarily shut-in until later in the summer to conserve solution gas
§ Current field production of approximately 200 bopd
Following a sustained period of good weather, the Calgary operations team has successfully undertaken the workover of 16-19, which was originally planned to occur later in the summer. The failed packer was drilled out and a cemented liner run and perforated. The well was acidized and swab tested, showing rates above 500 barrels of oil per day ("bopd") on swab. The pump and rods were then run and the well has been on regular production since mid June. The well will now be produced at between 100 and 140 bopd to maximise the cumulative long term oil recovery from the well.
The re-entry well, 14-22, which was producing at a restricted rate of 50 bopd, has been temporarily shut-in since May to conserve its solution gas, which is also in line with the Alberta Energy Regulator restrictions on gas flaring limits. Subject to obtaining the required approvals, the well will be tied-in to the local gas gathering system later in the summer, which will allow the well to be put back on production at a steady rate. The produced gas will provide a small economic contribution, offsetting the gas tie-in costs over time.
The third well, 13-33, has been on production throughout May and June and achieved a production uptime of 82 per cent at an average daily production rate of 125 bopd. The well production rate has been deliberately restricted to lower than the originally planned 150 bopd in order to maximise well performance and recovery and will now be produced at between 80 and 100 bopd.
The combined field production, allowing for operational downtime, is expected to continue at approximately 200 bopd, leading up to the summer drilling campaign. The permitting process is currently underway for the three well summer drilling programme, which is forecast to begin in August.
Keith Bush, Chief Executive Officer, commented:
"The Calgary team have done well to take advantage of a dryer than usual break-up period and undertake the workover on 16-19 ahead of schedule. Production data and well performance continues to support our expectations of achieving an average initial production rate of 100 bopd per well across the field. A successful summer drilling campaign will reinforce these assumptions further and de-risk our initial objective of producing five million barrels from the field on primary recovery."
An updated copy of the Company's corporate presentation will be available on the Company's website later today.
-Ends-
For further information please contact:
Northern Petroleum Plc Tel: +44 (0)20 7469 2900
Keith Bush, Chief Executive Officer
Graham Heard, Exploration & Technical Director
Westhouse Securities (Nomad and Broker) Tel: +44 (0)20 7601 6100
Richard Baty, Corporate Finance
Henry Willcocks, Corporate Broking
Camarco Tel: +44 (0)20 3757 4980
Billy Clegg
Georgia Mann
In Accordance with 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, Mr Graham Heard CGeol. FGS, who has over 35 years' experience as a petroleum geologist. He has compiled, read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE/WPC standard.
Note to Editors:
Northern Petroleum is an oil and gas company focused on production led growth. The Company is undertaking a redevelopment and production project in north west Alberta and has a broader portfolio of exploration and appraisal opportunities in countries of relatively low political risk, primarily Italy. Comprehensive information on Northern Petroleum and its oil and gas operations, including press releases, annual reports and interim reports are available from Northern Petroleum's website: www.northernpetroleum.com