13 Mar 2009 11:26
13 March 2009 Northern Petroleum Plc ("Northern" or "the Group") Italian Drilling Commences targeting 332 bcf
Northern announces that its wholly owned subsidiary, Northern Petroleum (UK) Limited, has this morning commenced drilling operations in Italy on the Savio 1x site utilising the Hydro Drilling International S.p.A. E1200 rig.
The Savio 1x well is Northern's first well drilled in Italy as Operator. It is located in Emilia-Romagna, a prolific gas producing area of the Po Basin. The prognosis is that after passing through the outer edge of the secondary objective, which has a mean potential entrapment of 110 bcf of gas at about 3200 metres, the primary reservoir target with estimated mean gas in place of 222 bcf will be encountered at about 3500 metres sub-surface.
Northern's mapping has had the benefit of access to a seismic survey tie into the Eni / Stratic Energy recently discovered Longanesi gas field, 25 kilometres to the northwest.
As announced on 24 October 2008, Northern has reduced its business risks and the call upon its cash balances through a farmout agreement with Avobone Italy S.r.l., a member of the Indofin Group. Avobone will be paying 40% of the well costs. Following completion of that agreement the licence interests will be:
Northern 80%
Avobone S.r.l. 20%
(A subsidiary of ATI Oil Plc currently has a commercial interest equal to half that of Northern).
Derek Musgrove, Managing Director, stated:
"We are increasing our activity level in Italy. This is a milestone in progressing our very large Italian project. The odds of success have been assessed as reasonable, but nevertheless it is an exploration well. The structure is of significantly higher than average potential for the region.
"Any discovery will benefit from the availability of an extensive infrastructure of gas pipelines and gas fired power stations throughout a region which has one of Europe's highest GDPs".
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.
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For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7469 2900Derek Musgrove, Managing Director Chris Foss, Finance DirectorGraham Heard, Exploration & Technical DirectorInvestec Tel: +44 (0) 20 7597 5000Michael Ansell / Patrick RobbBlue Oar Tel: +44 (0) 20 7448 4400Jerry Keen / Toby GibbsBishopsgate Communications (Press) Tel: +44 (0) 20 7562 3350
Nick Rome / Maxine Barnes
Buchanan Communications (Analysts) Tel: +44 (0) 20 7466 5000
Tim Thompson / Ben Romney
Notes to Editors:
Northern Petroleum has recoverable Proven and Probable reserves of 76.5 million barrels of oil equivalence.
Following a deal with the joint Shell and ExxonMobil subsidiary, NAM, Northern became 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 km ², 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 222 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 oil field. In 2009 it is planning to drill an eastward extension of the Horndean oil field. Northern has a 50% interest in the venture.
Further information on Northern is available at www.northpet.com.
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