21 Jan 2009 07:00
21 January 2009 Northern Petroleum Plc Dutch Test Results: 21.8 mmcfd is Double Expectation
Northern Petroleum Plc announces that its wholly owned subsidiary, Northern Petroleum Nederland B.V., ("Northern") has now analysed the results of the hydraulic fracturing ("fraccing") of the gas reservoirs at Wijk en Aalburg and Brakel. The results suggest that the planned combined initial production rates for later in 2009 could be more than doubled.
In late 2008 production preparation workovers and fraccing operations were conducted on the Wijk en Aalburg and Brakel gas wells. After a period of clean-up at even higher flow rates at Brakel to recover excess fluids and proppants injected during the fraccing operations, sustained flow rates were measured:
Wijk en Aalburg - 6.0 mmcfd over a 48 hour period on a 28/64 inch choke
Brakel - 15.8 mmcfd over a 20 hour period on a 44/64 inch choke
The Brakel flow rates were much greater than any previous predictions. The downhole pressure measuring instruments have now been recovered and current analysis of the results means that production could be initiated and sustained at rates towards the upper limit of the gas plant designed capacity around 11 mmcfd. Only after a period of production will it be possible to make a more precise assessment of the reserves with a view to revision.
The levels of petroleum liquids per unit volume of gas recovered during testing were also higher than anticipated.
The licence interests are held,
Northern 45%EBN 40%Dyas B.V. 15%
Derek Musgrove, Managing Director, Northern Petroleum Plc. stated:
"Even at current prices these fields are expected to make a meaningful contribution to the bottom line. This is tremendously encouraging news. The flow rates in terms of barrels of oil equivalent are 2630 boed for Brakel and 1000 boed for Wijk en Aalburg. The improvements to reservoir productivity as a result of hydraulic fraccing have been well beyond expectations. It should be noted that, whilst we have always expected that flow rates would be enhanced by fraccing to levels justifying the expenditures, such increases have not been incorporated in our forecasts.
"The higher than expected quantities of petroleum liquids will make a useful contribution to sales revenues. They also give rise to intriguing questions regarding the oil below the gas-oil contact in a reservoir sequence not currently thought capable of being considered an economic production unit".
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 PlcTel: +44 (0) 20 7469 2900Derek Musgrove, Managing DirectorChris Foss, Finance DirectorGraham Heard, Exploration & Technical DirectorInvestecTel: +44 (0) 20 7597 5000Michael Ansell / Patrick RobbBlue OarTel: +44 (0) 20 7448 4400Jerry KeenBishopsgate Communications (Press)Tel: +44 (0) 20 7562 3350Nick Rome / Maxine BarnesBuchanan Communications (Analysts)Tel: +44 (0) 20 7466 5000Tim Thompson / Ben RomneyNotes to Editors:
Northern has recoverable Proven and Probable reserves of 76.5 million barrels of oil equivalence.
Northern is the Netherland's second largest onshore oil company in terms of oil and gas reserves, with 45.5 million boe recoverable. It is currently producing gas at Waalwijk and the offshore P12 fields. The planned development of six onshore oil and gas fields is being progressed through the Netherlands authorisation and planning processes. Partners in these projects include Dyas B.V., EBN and NAM. Northern recently sold its interest in the Waalwijk Underground Gas Storage project application for an overall consideration of £10 million.
Northern manages the largest licensed exploration area in Italy, over 13,000 km², predominantly offshore but includes seven licences in the Po Valley oil and gas province in the north of the country where the drilling of the Savio 232 bcf gas prospect is being progressed. Through its holdings in licences in the southern Adriatic covering the Rovesti and Giove oil discoveries it has net Probable oil reserves independently assessed at 26.6 million barrels recoverable. It has recently signed a deal with Shell Italia refunding Northern's past costs and providing for Shell Italia to fund the next phases of exploration of a potential new oil province in the extension of the Apennine thrust system offshore Sicily.
In the UK the Group is also a significant holder of licences in the south of England where it has a 10% interest in the production from the Horndean oil field and a 5% interest in the Avington development. In 2009 it is planning to drill an eastward extension of the Horndean oil field. Northern has a 50% interest in the venture.
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