Cabot Energy Regulatory News (CAB)

NORTHERN PETROLEUM PLC - Important increase in Canadian lease position

PR Newswire

London, March 21

Embargoed for immediate release 21st March 2013

Further to the announcement on the 19th March 2013, Northern Petroleum Plc(AIM: NOP) reports the acquisition of additional leases in Canada, followingyesterday's Alberta Crown lands sale, and provides further detail of theproduction opportunity.

Yesterday Northern acquired additional leases over 4,000 acres increasing itsaggregate holding of petroleum and natural gas mineral rights in Canada to9,300 acres. These leases are all centred in one basin in Northern Alberta. Todate they have produced a combined 11 million barrels of oil from an estimated56 million barrels of oil originally in place, representing a recovery factorof approximately 20 per cent. The total acreage contains 37 abandoned wells, ofwhich 19 have initially been identified by Northern as being capable ofre-entry for further production.

This area has multiple redevelopment opportunities for the existing highproductivity reefs in the Keg River Formation as well as the Muskwa emergingunconventional shale play.

The basin contains over 800 pinnacle and atoll reefs of the Keg River Formationformed during the Mid-Devonian and are encased in sealing evaporites of theMuskeg Formation. Discovered in the 1960s, most of the reefs were developed andabandoned having only recovered approximately 27 per cent of the light oiloriginally in place. In excess of 2,000 wells have produced almost one billionbarrels of light oil from the Keg River Formation in the basin to date, asreported by the energy regulator in Alberta.

Northern has now successfully acquired a land package of critical mass to startoperations. The work programme during 2013 and into 2014 will focus onactivities during the winter season, when complete access is possible. Duringthe summer it is planned that a small number of wells will be put on short termproduction test to establish flow rates, confirm reservoir characteristics andthe final design of the winter season programme. This information will then beused to build infrastructure, at an optimum level relative to operationalexpenditure, to support continuous production, expected to start early in 2014.

Derek Musgrove, Managing Director, commented today,

"This basin exploitation and redevelopment opportunity combines two keyelements of Northern's strategy: low-cost entry and near term material valuegrowth. The oil and gas industry in Canada is fast paced and well regulated,which is the perfect environment for small companies to grow and at the rateexpected by our shareholders. We have acquired some excellent exploitationopportunities and a good team to bring the project into production."

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:

Billy Clegg / Victoria Huxster

Northern is a full cycle oil and gas company currently holding over numerouslicences in a number of low risk areas and is continuing with its strategy ofadding and securing value for shareholders as it engages with projects at allstages of the E&P value chain.

Comprehensive information on Northern and its oil and gas operations, includingall press releases, annual reports and interim reports are available fromNorthern's website at www.northpet.com.