7 Sep 2012 07:00
7th September 2012 Northern Petroleum Plc ("Northern" or the "Company" (AIM: NOP)) La Tosca-1 Well Operations Completed
Northern Petroleum Plc announces that the La Tosca-1 exploration well reached total depth of 2335m on the 27th August 2012 and a decision made to plug and abandon having encountered gas shows. La Tosca-1 commenced drilling operations on the 6th August 2012 evaluating the exploration potential of a gas prospect mapped from 3D seismic on the Longastrino permit.
The positive expectations prior to drilling were, to an extent, supported by wireline logging but the indications were of more limited reservoir sand development than expected from extrapolation of data from nearby wells. The considered conclusion was that the data did not provide a sufficiently strong economic case to warrant well completion and testing.
Under a farmout agreement, Northern's share of the well costs was largely borne by its joint venture partner, Orca Exploration Group Inc. in keeping with Northern's strategy of managing risk and financial exposure.
Derek Musgrove, Managing Director of Northern commented:
"Whilst there will not be a well test, the gas shows are encouragement for further work to be undertaken to determine the future potential in the area. Northern's share of the well cost is minimal and the drilling was completed ahead of schedule and conducted in a proficient manner.
"I would also note that the Company strategy for limiting the financial exposures, in this case through a farmout process, to effect a mitigation of the exploration risk, was appropriate."
In accordance with 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 35 years experience as a petroleum geologist. He has compiled, read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE/WPC standard.
-Ends-
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 8900
Ken Fleming/Beth McKiernan Tel: +44 (0) 131 220 6939
Westhouse Securities (Joint Broker) Tel: +44 (0) 20 7601 6100
Richard Baty/Petre Norton - Corporate Finance
FTI Consulting Tel: +44 (0) 20 7831 3113
Billy Clegg/Edward Westropp
Bishopsgate Communications Tel: +44 (0) 7748 325 236
Nick Rome
Notes to Editors:
Northern is a full cycle oil and gas company currently holding over 40 licences in a number of low risk areas and is continuing with its strategy of adding and securing value for shareholders as it engages with projects at all stages of the 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