Cabot Energy Regulatory News (CAB)

19 Jun 2006 07:00

Embargoed for release: 0700 on 19 June 2006 Northern Petroleum Plc ("Northern" or the "Company") Final Results for the Year Ended 31 December 2005 HighlightsOn track to achieve gross field production levels of 1,000 bopd and 40MW ofelectricity in the next eighteen monthsIncrease to 60.5 million barrels of oil equivalent in Proven + Probablereserves * Through a ‚£19 million (net) fund raising and Standard Bank Plc Credit Committee approval of project finance facility, the Group is now well funded to finance the development of six oil and gas fields in the Netherlands and other projects * Built major position in Italy, No.2, after ENI/Agip, in permit area under management with activities set to accelerate in 2006 on a number of potentially "company making" prospects * New UK drilling programme in the Weald Basin * Profitable sale of Spanish licences and production, with carried interest retainedChairman's Statement I believe Northern Petroleum can now be considered a project rich company. Weare moving forward to develop two oil fields and four gas fields in TheNetherlands to secure what I like to think of as the cash engine for the futuredevelopment of our substantial project base of 49 licences and applications inThe Netherlands, the United Kingdom and Italy where we are second only to ENI/Agip in terms of exploration area under our operations. Following the award of the Papekop Production Licence on 7th June 2006 thecompany's attributable proven plus probable reserves have now increased to 60.5million barrels of oil equivalence ("boe"). Equal attention should be given to the exploration licence position obtainedthrough our agreements with Nederlandse Aardolie Maatschappij B.V. ("NAM")which we anticipate will be supplemented with the success of our three licenceapplications. This would create a position of 2,080km‚² in what is the mostsoutherly part of the North Sea Gas Basin, or approximately 10 UKCS full sizedblocks, in which we have now mapped six prospects. NAM will be drilling Steenwijk-1, a gas prospect with a gross target of 150-240Bcf of gas in place in the eastern part of The Netherlands later this year. Itwill be a farm-in well under the terms of an agreement with NAM through whichwe will earn a 50% net profit interest. We can now foresee the fulfilment of our ambitious strategy in Italy. When allthe licences are finally gazetted we will have established ourselves as thesecond largest exploration company in Italy in terms of licensed area undermanagement. I ask you to note that most of the licences were selected andapplied for before the recent substantial increases in oil and gas prices. Thisis the result of an aggressive strategy to acquire offshore and Po Valleylicences in prospective areas. I expect to provide more news on Italy as fieldactivity levels increase over the coming year. Since the end of 2005 we have placed 15,384,616 shares to provide ‚£19 millionnet and the Credit Committee of Standard Bank Plc ("Standard Bank") have agreedthe terms of a project finance facility of up to ¢â€š¬40 million, which willtogether finance the cash generating base in the Netherlands and allow us tomove forward in Italy. In the competitive environment driven by higher oil andgas prices, I am delighted to have succeeded in attracting the highlyexperienced staff necessary to manage and execute our ambitions. It is always a hard decision to sell producing assets but the sale of ourassets in Spain was undertaken to enable our re-deployment into theNetherlands. This decision was, I believe, correctly taken on the grounds ofthe materiality of the added value potential in return for the financial andhuman resources deployed. We wish much success to the buyers, particularly asNorthern has retained a 1.25% gross overriding royalty over the threeexploration licences. We also have gained valuable experience during our periodof tenure in Spain and realised a profit on sale of ‚£419,000. In the South of England activity now moves forward to the Weald Basin whereattributed proven reserves have increased and an appraisal well and oneprospect have been selected for drilling in the next year. One site is themapped extension of a producing oil field on a licence in which we hold a 50%interest. The drilling on the Isle of Wight last year was disappointing for ourhopes in the Wessex Basin. We have absorbed the good points arising from sandprediction in Bouldnor Copse-1 and issues arising from now presumedbio-degraded oil at Sandhills. We have also taken note and are proud of therapid improvement of drilling cost performance at Bouldnor Copse-1. In theshorter term the currently suspended Avington-3 well, in which we have a 5%interest, is to be tested. Whilst we should all take pleasure in the reporting of the significant provenplus probable reserve position of 60.5 million boe and look forward to placingthe six fields onshore Netherlands in production, the real significance will bedemonstrated as we build yet further on this income base to develop theprojects that we already have in-hand in what would otherwise be a highlycompetitive market. On the wider front we have been reported as having been recognised by Hemscottas the best performing Exploration and Production Company on AIM in terms oftotal shareholder returns over the three years to 9th May 2006, just before thesubsequent change in market conditions. This progress has been made possible bythe huge efforts over that period of the executive directors, staff andconsultants. I also wish to acknowledge the support of Standard Bank and ournew stockbrokers Investec Securities ("Investec") and Panmure Gordon & Co., whoare achieving an ever wider recognition of Northern throughout the British andNetherlands financial communities. Of necessity John East & Partners havepassed the role of Nominated Financial Advisor to Investec. They deserve thethanks of both the Board of Directors and shareholders. Sadly, I must also say farewell to a friend, and director, David Roberts. Inthe low period for our Company in 1998 / 1999, he was one of a team that joinedin refinancing and redirecting Northern towards the future we now see andaspire to. David earned the deep respect of the whole board for his knowledgeof the oil business. His wisdom and friendship will be much missed. I am surethat we will achieve much on the path which we set out on together. He died on8th April, 2006 and shall not be with us to see that which we are now doublyresolved to achieve. R LathamChairman16 June 2006Review of Operations - Overview There has been an increase to 60.5 million barrels of oil equivalent ofindependently reported Proven plus Probable reserves. This is as a result ofre-evaluation work on the interest in five fields in The Netherlands acquiredfrom NAM, the award of the Papekop Production Licence and work by ECL tore-examine the Weald Basin assets to reflect a $40/bbl oil price. The main objective has been to create a viable presence in The Netherlands thatin the near future will provide production income more than sufficient to funda significant onshore exploration programme in this lower risk proven oil andgas province. The first new activity will be the drilling of Steenwijk-1currently scheduled for October 2006. Also almost complete is the building of a major presence in Italy of 11,432 km‚², having under our management the second largest exploration area after ENI/Agip, based upon a strategy of revisiting past offshore discoveries and playsin the light of new technical capabilities and new economics. This is theimplementation of a decision made some years ago to build on the greaterpotential of Italy rather than in the declining UK Sector of the North Sea andalso to avoid the risks of the UK Government's multiple fiscal and licensingchanges. In the UK we have continued in the onshore South of England, concentrating onthe appraisal of discoveries and exploration in the more mature Weald Basinfollowing last year's unsuccessful campaign in the Wessex Basin. Avington-3(5%) is soon to be tested and, as Operator, we are planning the drilling of twowells with a 50% interest. D MusgroveManaging Director16 June 2006 Unaudited Statement of Net Commercial Oil & Gas Reserve Quantities - Proven and Probable reserves for the year ended 31 December 2005Volumes - Group Total Oil Gas Petroleum Million Million bbl bcf boe At 1 January 2005 10.24 - 10.24 Changes during the year: Acquisitions 14.20 242.60 56.03 Production (0.01) - (0.01) Revisions of previous estimates (5.72) - (5.72) At 31 December 2005 18.71 242.60 60.54 Volumes and categorisation by location - Group United Kingdom Netherlands Total Oil Gas Petroleum Oil Gas Petroleum Oil Gas Petroleum Million Million Million Million Million Million bbl bcf boe bbl bcf boe bbl bcf boe At 31 December 2005: Proven 1.58 - 1.58 7.70 146.10 32.89 9.28 146.10 34.47 reserves Probable 2.93 - 2.93 6.50 96.50 23.14 9.43 96.50 26.07 reserves 4.51 - 4.51 14.20 242.60 56.03 18.71 242.60 60.54 At 31 December 2004: Proven 1.27 - 1.27 - - - 1.27 - 1.27 reserves Probable 8.97 - 8.97 - - - 8.97 - 8.97 reserves 10.24 - 10.24 - - - 10.24 - 10.24 Notes 1. The Reserve estimates shown in this report are based upon the jointreserve and resource definitions of the Society of Petroleum Engineers, theWorld Petroleum Congress, and the American Association of Petroleum Geologists. 2. Proven and probable reserves in the UK represent the Group'sreserves as previously determined by ECL in April 2005, and subsequentlyreconfirmed in June 2006, in an independent valuation of some of the Group'soil and gas assets in the Weald Basin. 3. Proven and probable reserves in the Netherlands represent theGroup's reserves as determined by RPS Energy in an independent valuation ofsome of the Group's oil and gas assets in that country in March 2006. Thesereserves were originally acquired as a result of the Group's agreements withNAM and through its application for the Papekop production licence, which wasawarded on 7 June 2006. Net reserves make the assumption of Dutch Stateparticipation of 40% in all the NAM projects. The reserves in the Netherlandswhich are held as a result of the Group's agreements with NAM are subject to a50% net profit interest after payback of 130% of the Group's capital costs. ThePapekop production licence is subject to a 1% gross overriding royalty over theGroup's interest. 4. The reason for the revisions of previous estimates is theunsuccessful drilling of two Wessex Basin wells during 2005. Quantities of oil equivalent are calculated using a gas-to-oil conversionfactor of 5,800 scf of gas per boe.In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies,the information contained in this announcement has been reviewed and signed offby the Exploration Manager of Northern, Mr Graham Heard BSc (Hons), who hasover 30 years experience as a petroleum geologist. The reserve estimatesreported are based on the joint reserve and resource definitions of the Societyof Petroleum Engineers, the World Petroleum Congress and the AmericanAssociation of Petroleum Geologists. For further information please contact: Northern Petroleum PlcDerek Musgrove, Managing DirectorChris Foss, Finance DirectorTel: +44(0)20 7743 6080InvestecPatrick RobbTel: +44(0)20 7597 5000Panmure Gordon & Co.Katherine RoeTel: +44(0)20 7459 3600Hansard CommunicationsChris RobertsBen SimonsTel. +44(0)20 7245 1100 Notes to EditorsNorthern Petroleum Plc is an oil and gas exploration, development andproduction company focused on the European Union and nearby areas. It islisted on the AIM Market of the London Stock Exchange.The Company seeks to obtain significant concentrated licence positions and toadd value at reasonable risk utilising new ideas together with new drilling,seismic, completion and computer technologies where it is believed thateconomic oil and gas production can be established. Efforts are concentrated ina few areas.The Company has been recognised as an Operator of both onshore and offshoreprojects including a producing oilfield and boasts a management and technicalteam of the highest quality.Consolidated Profit and Loss AccountFor the year ended 31 December 2005 Year Year Year Year Year Year ended ended ended ended ended ended 31 31 31 31 31 31 December December December December December December 2005 2005 2005 2004 2004 2004 Notes ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£,000 ‚£'000 Continuing Discontinued Continuing Discontinued Operations Operations Total Operations Operations Total Turnover 2 174 321 495 136 332 468 Productions (35) (234) (269) (44) (288) (332)Costs Depreciation, (31) (22) (53) (78) (46) (124)depletion and amortisation Cost of sales (66) (256) (322) (122) (334) (456) Gross profit / 108 65 173 14 (2) 12(loss) Administrative (1,186) (55) (1,241) (730) (56) (786)expenses Other 191 22 213 80 28 108operating income Operating (887) 32 (855) (636) (30) (666)(loss) / profit Share of operating (loss) / (80) 3profit in associates Group (935) (663)Operating Loss Profit on 3 441 16disposal of subsidiary and associate Interest 164 161receivable and similar income Loss on (330) (486)ordinary activities before taxation Tax on loss on (13) (5)ordinary activities Loss for the (343) (491)year Basic loss per 4 (0.64)p (0.98)pshare Diluted loss 4 (0.64)p (0.98)pper share Consolidated Statement of Total Recognised Gains and LossesFor the year ended 31 December 2005 Year Year Ended Ended 31 31 December December 2005 2004 ‚£'000 ‚£'000 Loss for the financial year (343) (491) Exchange differences on retranslation of net assets of subsidiary undertakings (6) (3) Total recognised gains and losses (349) (494) Loss for the financial year includes the Group's share of joint venture'slosses after tax of ‚£Nil and associates' losses after tax of ‚£80,000. Neitherthe joint venture nor the associates have any other gains or losses. Consolidated Balance SheetAt 31 December 2005 2005 2004 Notes ‚£'000 ‚£'000 Fixed assets Intangible assets 5 3,208 625 Negative goodwill 6 - - Tangible assets 7 663 566 Investments in joint ventures: Share of gross assets of joint ventures 10 3 Share of gross liabilities of joint ventures (10) (3) - - Share of net assets of associates 195 249 Total fixed assets 4,066 1,440 Current assets Stocks 27 137 Debtors 1,076 667 Cash at bank and in hand 1,904 5,140 3,007 5,944 Creditors: amounts falling due within one year 930 810 Net current assets 2,077 5,134 Creditors: amounts falling due after more than one - 53year Provisions for liabilities and charges 27 109 Total assets less liabilities 6,116 6,412 6,116 6,412 Capital and reserves Called up share capital 8 2,697 7,119 Share premium account 41 9,332 Special reserve (Distributable) 3,574 - Special reserve (Undistributable) 147 - Profit and loss account (343) (10,039) Shareholders' funds 6,116 6,412 These financial statements were approved and authorised for issue by the Boardof Directors on 16 June 2006 and were signed on its behalf by:C J Foss D R Musgrove Consolidated Statement of Cash FlowsFor the year ended 31 December 2005 Year Year Ended Ended 31 31 December December 2005 2004 Notes ‚£'000 ‚£'000 Net cash outflow from operating activities 9(a) (540) (573) Returns on investments and servicing of financing Interest received 164 161 Taxation Overseas taxation paid (13) (7) Capital expenditure and financial investments 9(b) (2,806) (462) Acquisitions and disposals Disposal of subsidiary undertaking (88) - Cash outflow before financing (3,283) (881) Financing Issue of ordinary shares for cash (net of 53 3,082expenses) (Decrease)/increase in cash in the year (3,230) 2,201 Reconciliation of net cash flow to movement in 9(c) & 9 (d) net funds (Decrease)/increase in cash in the year (3,230) 2,201 Exchange adjustments (6) (6) Net funds 1 January 5,140 2,945 Net funds 31 December 9(c) & 9 (d) 1,904 5,140 Notes to the AccountsFor the year ended 31 December 2005 1. BASIS OF PREPARATIONThe financial information presented in this announcement does not constitutestatutory accounts within the meaning of s240 of the Companies Act 1985. Theinformation has however been extracted from the Company's statutory accountsfor the year ended 31 December 2005 which were approved by the Board on 16 June2006 and on which the Company's auditors have given an unqualified opinion. 2. SEGMENTAL INFORMATIONAs a consequence of the addition of the Netherlands as a new geographicalsegment during 2005, and the disposal of the Group's Spanish assets, changes tothe Group's 2005 segmental analysis and cost pools (see notes 5 and 7) havebeen made as described below. Both the Netherlands and Italy have beendisclosed as segments and cost pools in their own right (previously amalgamatedwithin Rest of Europe), while the United Kingdom and Ireland pool has beenrenamed United Kingdom as the Group no longer holds, or expects in the mediumterm to hold, any Irish oil and gas assets. In addition Spain and Guyane havebeen amalgamated within a new cost pool, Other EU, having previously beendisclosed separately within a Spanish and South American segment and cost pool. The results of the Company's former subsidiary, Northern Petroleum ExplorationLimited, which held the Group's Spanish interests, have been included withinthe consolidated accounts up until the effective date of the sale, being 30September 2005. All turnover in 2005 relates to income from the Group's oil and gas assets, andis analysed as follows: Year Ended Year Ended 31 December 31 December 2005 2004 ‚£'000 ‚£'000 Other EU - discontinued 321 332 United Kingdom - continuing 174 136 495 468 Operating profit/(loss) is analysed as follows: Year Ended Year Ended 31 December 31 December 2005 2004 ‚£'000 ‚£'000 Discontinued 32 (30) Continuing (887) (636) (855) (666) The loss before interest for the year is analysed by geographical area asfollows: Year Ended Year Ended 31 December 31 December 2005 2004 ‚£'000 ‚£'000 United Kingdom 106 84 Italy - Group (6) (9) Italy - Associate (80) 3 Netherlands (34) - Other EU 19 (34) Common costs (940) (707) Group operating loss (935) (663) Net interest and similar income 164 161 Profit on sale of fixed asset investments 419 11 Profit on deemed sale of fixed asset investments 22 5 Tax on loss on ordinary activities (13) (5) Loss for the year (343) (491) Miscellaneous common costs, which predominantly relate to head office salariesand administration costs, have not been apportioned to geographical areas. The net operating assets are analysed by geographical area as follows: Year Ended Year Ended 31 December 31 December 2005 2004 ‚£'000 ‚£'000 Operating assets: United Kingdom 3,628 679 Italy 216 83 Netherlands 95 7 Other EU 78 254 4,017 1,023 Non-operating assets: Fixed asset investments - associates 195 249 Cash 1,904 5,140 2,099 5,389 6,116 6,412 3. NON-OPERATING ITEMSProfit on sale of fixed asset investments Year Ended Year Ended 31 December 31 December 2005 2004 ‚£'000 ‚£'000 Profit on disposal of subsidiary undertakings 419 - Profit on disposal of associate undertakings - 11 Profit on deemed disposal of associate undertakings 22 5 441 16 The Company sold its entire shareholding in it's wholly owned subsidiary,Northern Petroleum Exploration Limited, to Gold Oil Plc, with an effective dateof 30 September 2005. No tax has been accrued or paid in respect of thisprofit, as the Company believes this capital gain will be subject tosubstantial shareholder relief. The profit on deemed disposal of the associate undertaking represents thedeemed profit arising following fundraisings, which have been at prices inexcess of the Group's average cost of its investment, by ATI Oil Plc. No taxhas been accrued or paid in respect of this deemed profit. 4. LOSS PER SHAREThe basic and diluted loss per share is calculated by reference to the loss forthe year of ‚£343,000 (2004: loss of ‚£491,000) and the weighted average numberof ordinary shares in issue, after adjusting for the five for oneconsolidation, during the year of 53,787,152 (2004: 50,343,769). The effect ofall potential ordinary shares is anti-dilutive. 5. INTANGIBLE ASSETSIntangible assets represent the cost of investment in oil and gas projectswhere it is too early to make a decision regarding the existence or otherwiseof commercial reserves. United Kingdom Italy Netherlands Other Total EU ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Group Cost: At 1 January 2005 473 97 7 152 729 Additions 2,438 124 8 (13)2,557 Disposals - - - (20) (20) Transfer from / (to) tangible 42 - (7) - 35assets (note 7) Exchange adjustment - - - (2) (2) At 31 December 2005 2,953 221 8 117 3,299 Depletion, depreciation and amortisation: At 1 January 2005 46 - - 58 104 Charge for the year - - 7 24 31 Disposals - - - (44) (44) At 31 December 2005 46 - 7 38 91 Net book value: At 31 December 2005 2,907 221 1 79 3,208 At 31 December 2004 427 97 7 94 625 Included within the costs of the United Kingdom & Ireland pool is ‚£36,000relating to land on the Isle of Wight purchased by the Group, and held onbehalf of, the co-licencees of Petroleum Exploration and Development Licences("PEDL") 098 and 113. Licence cost analysis of intangible assets by cost pool at 31 December 2005: United Kingdom Italy Netherlands Other Total EU ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Licence acquisition 94 150 8 5 257costs Exploration and 2,859 71 - 112 3,042appraisal costs Total cost at 31 2,953 221 8 117 3,299December 2005 The Group's share of the intangible oil and gas assets of associate companiesis analysed as follows: ‚£'000 United Kingdom 6 Italy 122 Other EU 10 138 6. NEGATIVE GOODWILLNegative goodwill previously arose because the fair value of the Ayoluengoassets purchased during 2002 was greater than the consideration paid. ‚£'000 Group Cost: At 1 January 2005 (25) Disposals 25 At 31 December 2005 - Amortisation: At 1 January 2005 25 Disposals (25) At 31 December 2005 - Net book value: At 31 December 2005 - At 31 December 2004 - 7. TANGIBLE ASSETS Oil and Gas Oil and Gas Oil and Oil and Gas Computer and Assets Assets Gas Assets (UK) other Office (other EU) (Netherlands) Assets Undeveloped equipment Total (UK) -Developed - Undeveloped Developed ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Group Cost: At 1 January 105 - 226 286 43 6602005 Additions 147 - 38 36 221 Transfer from intangible assets (note 5) - 7 - (42) - (35) Disposal (104) - - - - (104) Exchange (1) - - - (1)movement At 31 December - 154 226 282 79 7412005 Depletion, depreciation and amortisation: At 1 January 53 - 25 - 16 942005 Charge for the - - 22 - 15 37year Disposal (52) - - - - (52) Exchange (1) - - - - (1)movement At 31 December - - 47 - 31 782005 Net book value: At 31 December - 154 179 282 48 6632005 At 31 December 52 - 201 286 27 5662004 The carrying value of proven undeveloped oil and gas assets in the Netherlandsincludes the expenditures to date in respect of certain assets in which theGroup has interests in the Netherlands that have been independently reviewed byRPS Energy Limited in March 2006. Further information is given in the UnauditedStatement of Net Commercial Oil & Gas Reserve Quantities. The carrying value of proven developed oil and gas assets includes a 10%interest in the producing Horndean field owned by the Company's wholly ownedsubsidiary, Northern Petroleum (GB) Limited. The carrying value of proven undeveloped oil and gas assets in the UK includesthe expenditures to date in respect of certain assets under licence to theGroup in the Weald Basin that have been independently determined by ExplorationConsultants Limited in April 2005, and subsequently confirmed by the samecompany in June 2006, to be two proven undeveloped oil fields. Furtherinformation is given in the Unaudited Statement of Net Commercial Oil & GasReserve Quantities. Licence cost analysis of tangible assets by cost pool at 31 December 2005: Other EU - Netherlands UK - UK - Developed -Undeveloped Developed Undeveloped Total ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Licence acquisition - 60 178 18 256costs Exploration and - - - 264 264appraisal costs Development costs - 94 1 - 95 Total cost at 31 - 154 179 282 615December 2005 8. SHARE CAPITAL 2005 2004 ‚£'000 ‚£'000 Authorised: 4 ordinary shares (2004: 1,556,582,024) of 1p each - 15,566 Nil deferred shares (2004: 18,475,749) of 24p each - 4,434 311,316,404 (2004: Nil) ordinary shares of 5p each 15,566 - 15,566 20,000 Allotted and called up: Nil ordinary shares (2004: 268,470,900) of 1p each - 2,685 Nil deferred shares (2004: 18,475,749) of 24p each - 4,434 53,931,117 (2004: Nil) ordinary shares of 5p each 2,697 - 2,697 7,119 9. NOTES TO THE STATEMENT OF CONSOLIDATED CASH FLOWS(a) Reconciliation of operating loss to net cash outflow from operatingactivities: Year ended Year ended 31 December 31 December 2005 2004 ‚£'000 ‚£'000 Operating loss (855) (666) Depreciation, depletion and amortisation 53 124 Amortisation of negative goodwill - (10) Depreciation - non oil and gas tangible assets 15 10 Decrease in stocks 39 2 Increase in operating debtors and prepayments (676) (205) Increase in operating creditors and accruals 890 168 Exchange adjustments (6) 4 315 93 Net cash outflow from operating activities (540) (573) (b) Capital expenditure and financial investment: Year ended Year ended 31 31 December December 2005 2004 ‚£'000 ‚£'000 Purchase of tangible fixed assets (36) (7) Expenditure on oil and gas assets (2,766) (383) (2,802) (390) Purchase of fixed asset investments (4) (310) Sale of fixed asset investments - 12 Sale of current asset investments - 226 Net cash outflow from capital expenditure and financial investment (2,806) (462) (c) Analysis of net funds: At At 1 January Cash Exchange 31 December 2005 flow Movement 2005 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Cash at bank 5,140 (3,230) (6) 1,904 (d) Reconciliation of movement in cash to movement in net debt Year ended Year ended 31 December 31 December 2005 2004 ‚£'000 ‚£'000 (Decrease)/increase in cash (3,230) 2,201 Exchange movement (6) (6) Movement in net funds resulting from cash flows (3,236) 2,195 Opening net funds 5,140 2,945 Closing net funds 1,904 5,140 10. ANNUAL REPORT AND ACCOUNTSThe Annual Report and Accounts are expected to be posted to shareholders shortly and will be available free of charge for a period of not less than one month by application to the Company Secretary at No.1 Cornhill, London, EC3V 3ND. They will also be available in electronic format from the company's website, www.northpet.com.ENDNORTHERN PETROLEUM PLC