Cabot Energy Regulatory News (CAB)

20 Jan 2006 12:50

For release: 20 January 2006 Northern Petroleum Plc ("Northern" or "the Company") Licence Update - Italy Northern is pleased to advise shareholders that ATI Oil Plc ("ATI"), its jointventure partner in Italy, has today announced the final decree of theLongastrino licence in the Po Valley and the preliminary award of a furtherthree licences in which Northern also has a 50% interest - Gattinara in theWestern Po Valley, and offshore west of Sicily, d347C.R-.NP and d21G.R-.NP.The full text of the ATI release is as follows:ATI is pleased to announce that it has been advised by its partner, NorthernPetroleum (UK) Limited ("NPUK"), a subsidiary of Northern Petroleum Plc("Northern"), that the Italian authorities, having accepted the requiredenvironmental impact studies, have issued the final decree of the Longastrinolicence in the Po Valley in which an ATI subsidiary has a 50% beneficialinterest.In addition, NPUK has been advised of the preliminary award of a further threelicences in which ATI subsidiaries have a 50% interest - Gattinara in theWestern Po Valley, and offshore west of Sicily, d347C.R-.NP and d21G.R-.NP.Work on environmental impact studies will be commissioned shortly.These decrees add to ATI's position in Italy of:Ten licences now granted by full decree: Licence Area Licence Interest Size Onshore - Exploration Savio Po Valley 459 km‚² 50.00% Cerasa Adriatic Coast 382 km‚² 50.00% Nibbia Po Valley 253 km‚² 50.00% Longastrino Po Valley 140 km‚² 50.00% Offshore - Exploration ER.51.NP Tiber Delta 724 km‚² 50.00% CR.146.NP Sicily Channel 620 km‚² 50.00% CR.147.NP Sicily Channel 637 km‚² 50.00% GR.17.NP Sicily Channel 709 km‚² 50.00% GR.18.NP Sicily Channel 737 km‚² 50.00% GR.19.NP Sicily Channel 710 km‚² 50.00% There are three licences for which the preliminary award has recently beenoffered subject to submission of acceptable environmental impact assessments: Licence Area Licence Interest Size Onshore - Exploration Gattinara Po Valley 462 km‚² 50.00% Offshore - Exploration d347C.R-.NP Sicily Channel 391 km‚² 50.00% d21G.R-.NP Sicily Channel 713 km‚² 50.00% Derek Musgrove, Chairman of ATI, commented:"The above awards, together with seven licence applications (six uncontested)that came before the Italian Hydrocarbon licensing committee for considerationin December 2005, essentially complete the building of Northern and ATI's assetbase in Italy.This significant position has been built over a three and a half year period isdemonstrative of the substantial and valuable lead time we now have over ourcompetitors. For the main, it has been put together during a period of low oilprices, allowing us to, to an unusual extent, "cherry pick" outside the PoValley Basin region.The objective has been to identify both old discoveries of oil and gasconsidered ripe for re-appraisal and highly prospective mainly offshore areasto which we will be the first group to deploy new technologies now availableafter a hiatus of exploration activity during the times of low oil prices.The interesting and exciting exceptions are in the southern Adriatic and IonianSea where we will be progressing one gas and two oil discoveries made duringthose times of low oil prices and where the licences subsequently expired orwere relinquished. Here we believe that we may benefit from the fundamentalchange in economics. The Company will comment further when these licences areformally granted.Onshore ATI believes it will additionally benefit from the deregulation of theItalian gas and electricity markets."For further information please contact:Northern Petroleum PlcDerek Musgrove, Managing DirectorChris Foss, Finance DirectorTel: 020 7743 6080InvestecMichael AnsellAndrew ChenTel: 020 7597 5000Hansard CommunicationsChris RobertsBen SimonsTel. 020 7245 1100 Further information on Northern Petroleum Plc is available via our website, www.northpet.com ENDNORTHERN PETROLEUM PLC