Cabot Energy Regulatory News (CAB)

9 Sep 2005 13:45

Immediate release: 9 September 2005 Northern Petroleum Plc ("the Company" or "Northern") Drilling Report Northern announces that it has completed drilling and coring operations on theSandhills-2 well including the Sandhills-2Z sidetrack which reached a TotalDepth (TD) of 4960 feet measured depth.Core and electric log analyses have demonstrated that although oil has migratedto the Sandhills area and has been trapped there, it has sufferedbio-degradation to an extent that effectively it is considered not capable ofeconomic production even with oil saturations of up to 55%. The logs have alsobeen interpreted to indicate the presence of a limited quantity of gas as wasevidenced during drilling.After completion of operations at Sandhills-2 and demobilisation, the rig willbe moved to begin drilling Northern's Bouldnor Copse-1.Derek Musgrove, Managing Director of Northern stated:"The encouragement that can be taken from the Sandhills operation is that oilhas migrated that far west. Bouldnor Copse-1 is therefore sited with oil in thesoon to be developed 98/7-2 and Wytch Farm oil fields to the west and Sandhillsto the east. At Bouldnor Copse-1 we are targeting an up to 300 million barreloil prospect in the Sherwood Sandstone with the Great Oolite as a secondaryobjective in which we have a 70% interest. It should be noted the Sherwoodsandstone reservoir is below a depth at which bio-degradation would occur.We can look at the oil in Sandhills as something that geologically flattered,but we are encouraged by it as it gives us increased comfort that oil hasmigrated into the Bouldnor Copse area.It is also important to recognise that it does not impinge in any way upon ourprospects in the Weald Basin where the widespread presence of oolitic shoalreservoir formations and good quality light oil are well established."Participants in the Sandhills-2 well are:Northern Petroleum (GB) Limited: 57.5%Magellan Petroleum (NT) Pty Limited: 22.5%Oil Quest Resources Plc: 7.5%Black Rock Resources (UK) Limited : 5.0%Montrose Industries Limited: 5.0%Oil & Gas Investments Limited: 2.5%For further information please contactNorthern Petroleum PlcDerek MusgroveTel: 020 7743 6080Hansard CommunicationsChris Roberts/Ben SimonsTel: 020 7245 1100ENDNORTHERN PETROLEUM PLC