6 Jan 2011 07:00
06 January 2011 Northern Petroleum Plc ("Northern" or "the Company" (AIM: NOP)) Oil in Markwells Wood-1 Well Confirmed
Northern announces that assessment of the logs has confirmed that the entire Great Oolite drilled reservoir sequence in Markwells Wood-1 is oil bearing above the Horndean Field oil water contact of 4446 feet sub-sea level (TVD SS), meeting the primary objective.
The presence of mobile ("live") oil was observed when the 30 feet of core was extracted from the well. Initial analysis of the logs indicate the well, which was deviated at an inclination of approximately 56 degrees through the Great Oolite, penetrated a gross hydrocarbon bearing interval of 275 feet with a calculated net reservoir of 192 feet with an average porosity of 13-14%, a typical porosity value for this reservoir in the nearby fields in the same formation. The top of the Great Oolite was encountered 51 feet low to prognosis and the Great Oolite vertical thickness was 146 feet compared to a prognosis of 240 feet.
The analysis of the core is currently underway and that data will be integrated with the petrophysical evaluation and image logs to design the testing programmes.
Testing to establish pressures and flow rates in the existing wellbore will take place when the required services and equipment have been contracted. Testing operations will be conducted utilising a work-over rig at a lower day rate cost. Analysis of the result will enable the determination of the oil reserve potential and will be the basis for production planning.
Derek Musgrove, Managing Director of Northern, commented:
"The Markwells Wood-1 well has to date presented us with encouraging results. An oil bearing sequence has been encountered in the target reservoir adjacent to the producing Horndean oil field within its mapped structural closure. Detailed analysis of the core and logs will provide information on reservoir quality. Expected production rates will be derived from the future test programme.
Success at Markwells Wood, helped by current oil prices, should enhance the value of the other undeveloped discoveries and exploration prospects held under licence by Northern in the UK."
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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 Sophie Hull, Head of Corporate Communications Cenkos Securities (NOMAD and Joint Broker) Jon Fitzpatrick Tel: +44 (0) 20 7397 8900 Ken Fleming / Beth McKiernan Tel: +44 (0) 131 220 6939 Jefferies International (Joint Broker) Tel: +44 (0) 20 7029 8000 Chris Snoxall / Marco Baruzzi Financial Dynamics Tel: +44 (0) 20 7831 3113 Billy Clegg / Edward Westropp Bishopsgate Communications Tel: +44 (0) 20 7562 3350 Nick Rome / Michael Kinirons
Glossary
boepd barrel(s) of oil equivalence per day
P2 Proven plus Probable reserves
Probable Probable reserves are those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable in this context and when probabilistic methods are used, there should be at least a 50 per cent probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves.
Proved Proved reserves are those quantities of petroleum which, by
analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions.
TVD SS True Vertical Depth Sub Sea
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 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.
Notes to Editors:
Northern Petroleum Plc (NOP) is an oil and gas company with exploration, development and production assets in the Netherlands, Italy, UK and Guyane. The Company's strategy is to acquire low entry cost exploration, production and development assets. Through undertaking geological, geophysical and engineering work, Northern adds value to shareholders from production and asset sales.
Northern has total P2 reserves of in excess of 102 million barrels of oil equivalence ("mmboe"). In The Netherlands, where Northern has P2 reserves of 42.5 mmboe, Northern has six gas fields in production. In Italy, where Northern has P2 reserves of 53.16 mmboe, Northern is partnered with Shell and is pursuing a farm-out strategy. In the UK, Northern has 7.02 mmboe of P2 reserves. In Guyane, Northern is partnered with Tullow, Shell and Total. Northern's reserve position is detailed within the Company's 2010 Interim Report dated 29th September 2010 which is available on Northern's website.
Northern is well capitalised, has a track record of partnering with oil majors and is run by a senior and experienced management team.
Now that Wijk en Aalburg is in production, Northern is forecasting a production rate of between 2,200-2,300 boepd. This rate of production will increase as additional oil and gas fields in the Netherlands come on stream.
Northern is listed on the AIM market of the London Stock Exchange.
www.northpet.com
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