Cabot Energy Regulatory News (CAB)

4 May 2005 06:00

Embargoed: 0700hrs 4 May 2005 NORTHERN PETROLEUM PLC INDEPENDENT SOUTH OF ENGLAND ASSET VALUATION VALUATION ATTRIBUTES ‚£51.6 MILLION TO NORTHERN PETROLEUM PROVEN AND PROBABLE RESERVES IN ISLE OF WIGHT, HAMPSHIRE AND WEST SUSSEX Northern Petroleum Plc ("Northern") announces that it has received anindependent evaluation of oil and gas properties in the Isle of Wight,Hampshire and West Sussex, held under licence by the Northern Group ofcompanies, from Exploration Consultants Limited ("ECL").The ECL report makes the judgement that previous drilling and testing of wellsin the area has proven the existence of three oilfields to which reserves, netto Northern, have been attributed in the proven category as defined by TheSociety of Petroleum Engineers and compliant with the UK Listing Authorityguidelines. A further seven discovered oilfields have been attributed reservesin the probable and possible categories. All fields have undergone a fullreserves evaluation using standard industry techniques in the proven, probableand possible categories as defined by The Society of Petroleum Engineers andare summarised below.Net Northern Reserves (Million barrels)Reserve Category Wessex Channel Weald Total Proven 0 1.27 1.27 Proven + Probable 6.64 3.6 10.24 Proven + Probable + Possible 28.7 26.5 55.2 Net Northern NPV10* (‚£ Millions)Reserve Category Wessex Channel Weald Total Proven 0 4.65 4.65 Proven + Probable 35.7 15.9 51.6 Proven + Probable + Possible 151.2 122.2 273.4 *calculated using a discount rate of 10%In addition, ECL has evaluated the prospective reserves (i.e. for definedexploration prospects) and the contingent reserves applicable in the event ofhigher recovery factors in oolite reservoirs, to be achieved mainly from thesuccessful implementation of multi-lateral drilling techniques. In part thismay be dependent on application of new technology.Net Northern Additional Reserves (Million barrels)Reserve Category Wessex Channel Weald Total Contingent 9.7 5.5 15.2 Prospective 53.3 2.9 56.2 The value attributed to the combined contingent reserves on an unrisked basisat NPV10 is ‚£83million. On a risked and full cost development scenario basisthe prospective resources have been assigned a significant value.The report does not cover all the leads and prospects that Northern is workingon, nor does its scope encompass Licences PEDL 151, PEDL 152, PEDL 089 (B),P1153 (Blocks 98/7b & 98/8a) in the Wessex Channel Basin, PEDL 154 in the WealdBasin and two licences held in Kent as work is currently in progress.Derek Musgrove, Managing Director of Northern, stated, "I believe that this isthe first time that we have been able to demonstrate the value resulting fromour extensive work and holdings in these two basins in the South of England. Iam delighted that an independent report so clearly demonstrates the underappreciation of our assets in this region. Furthermore, this should notdistract from Northern's other assets in Italy, Spain, and Guyane.Our drilling programme is shortly to commence with two wells on the Isle ofWight in the Wessex-Channel Basin and we will move to obtain drilling locationsand planning consents in the Weald Basin once the May 5th 2005 electionactivities have passed."Contacts:Derek Musgrove, Managing DirectorNorthern Petroleum PlcTel. 020 7743 6080Chris Roberts/Ben SimonsHansard CommunicationsTel. 020 7245 1100ENDNORTHERN PETROLEUM PLC