2 Apr 2012 07:00
02 April 2012 Northern Petroleum Plc ("Northern" (AIM: NOP)) Guyane Update - Drill Rig Contracted Northern announces plans to commence drilling in mid 2012 on the Guyane permit,to follow up on the Zaedyus oil discovery in late 2011 that demonstrated theprospectivity of this licence area off South America. This is a relatively lowcost investment for Northern with high upside potential.In the Zaedyus exploration well, 72 metres of net oil pay was discovered in two turbidite sand systems in the first phase of drilling - successfully proving that the Jubilee play is mirrored across the Atlantic from West Africa.
The second phase of drilling is planned to involve the spudding of a de-lineation well on the discovery, likely to be followed by an exploration well on one of the neighbouring prospects within the area captured by 3D seismic survey. Additional 3D seismic is also planned to be acquired from midyear to further delineate leads on trend and similar to the Zaedyus discovery mapped on 2D seismic along the length of the deepwater margin.
To undertake these operations Shell, who took over as Operator from Tullow Oilon 1 February 2012, has contracted the Stena DrillMax ICE drill-ship, which isexpected to commence operations midyear subject to government consents.
The partner interests in offshore Guyane are:
Shell 45%Tullow 27.5%Total 25%Northpet Investments 2.5% (Northern owns a 50% equity interest in Northpet)
Derek Musgrove, Managing Director of Northern stated:
"Northern is pleased that the successful Zaedyus oil discovery is to be quicklyfollowed by a new drilling campaign. This will not only further delineate thediscovery structure, but will also move forward to drill some of the similarprospects defined by 3D seismic in order to confirm the wider significantpotential of this permit area covering the entire length of the prospectivecontinental shelf edge of Guyane, a distance of about 200 kilometres." 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 and Technical Director of Northern, Mr. Graham Heard CGeol.FGS, who has over 35 years experience as a petroleum geologist. He hascompiled, read and approved the technical disclosure in this regulatoryannouncement. The technical disclosure in this announcement complies with theSPE/WPC standard.
For further information please contact:
Northern Petroleum Plc Tel: +44 (0)20 7469
2900
Derek Musgrove, Managing Director Chris Foss, Director of Finance, Legal & Corporate Affairs Graham Heard, Exploration & Technical Director
Cenkos Securities (NOMAD and Joint Broker)Jon Fitzpatrick Tel: +44 (0) 20 7397 8900Ken Fleming / Beth McKiernan Tel: +44 (0) 131 220 6939
Westhouse Securities (Joint Broker) Tel: +44(0) 20 7601
6100
Richard Baty / Petre Norton - Corporate FinanceSanjiv Pandya - Corporate Broking FTI Consulting Tel: +44 (0) 20 7831 3113Billy Clegg / Edward Westropp Bishopsgate Communications Tel: +44(0) 20 7562 3350Nick Rome / Shabnam Bashir Notes to Editors: Northern is a full cycle oil and gas company currently holding over 50 licencesin a number of low risk areas and is continuing with its strategy of adding andsecuring value for shareholders as it engages with projects at all stages ofthe E&P value chain.
Comprehensive information on Northern and its oil and gas operations, including all press releases, annual reports and interim reports are available from Northern's website at www.northpet.com.
XLON