Cabot Energy Regulatory News (CAB)

24 Mar 2006 07:00

Embargoed for release: 0700hrs on 24 March 2006 Northern Petroleum Plc ("Northern" or the "Company") Upgrade of Reserves in the Netherlands Northern is delighted to announce the completion of a report commissioned bythe Company last year to review five Netherlands oil and gas fields in whichNorthern has an interest.The report, carried out by RPS Energy ("RPS"), a leading independent reservoirengineering consultancy group, has been completed for the Andel, Brakel,Geesbrug, Grolloo and Ottoland fields, but does not include the Papekopdiscovery for which Northern has applied for a Production Licence. The reserveestimates shown in the RPS report are based on the joint reserve and resourcedefinitions of the Society of Petroleum Engineers, the World Petroleum Congressand the American Association of Petroleum Geologists.The following results were obtained:-Gross Reserves Proved Proved + Proved + Probable Probable + Possible Oil 6.3MMstb 11.6MMstb 19MMstb Gas 210.1 bscf 364.9 bscf 544.6 bscfThese fields are all subject to agreements previously disclosed betweenNederlandse Aardolie Maatschappij BV ("NAM") and NP Netherlands B.V. ("NPN"), awholly owned subsidiary of Northern, which grant NPN commercial interests inthe above mentioned fields.The reserves are stated gross. The licence interests are subject to theMinister of Economic Affairs designating Energie Beheer Nederland B.V. ("EBN"),a State owned company, as a 40% participant in the field developments in returnfor a pro-rata share of sunk costs and a pro-rata share of all future costs ofthe joint ventures. The Northern interests are subject to a NAM 50% Net ProfitsInterest ("NPI") after NPN has recovered 130% of its capital costs.Derek Musgrove, Managing Director of Northern commented:"RPS has confirmed our recognition and analysis of the reserve potential of thefive fields and their report provides us with a solid foundation upon which tomove forward.Considerable technical effort has been expended by Northern to better integratethe results of the analysis of the detailed regional data by all the technicaldisciplines, in order to be able to provide this updated assessment of thereserve potential of the fields. The results represent a very sizeable upgrade,since our preliminary gross proved plus probable reserves assessment of 85 Bscfgas and 8 MMstb oil (as disclosed in the Operations section of the 2004 AnnualReport and Accounts and shown net of possible EBN back-in and furtherdiscounted by 50% to illustrate the NAM NPI).The upgrade has been largely possible thanks to our regional approach and thesupport of the latest software programmes, enabling a better understanding ofthe results from the original discoveries. Further improvements in reserveshave also come from the increase in commodity prices, which improve theeconomics and enable more reserves to be extracted profitably, and our proposedutilisation of the latest efficient small gas generators being utilised withinour development plan.With both the ongoing market deregulation in the EU and higher energy prices,Northern believes that the electricity generation model will becomeincreasingly prevalent in the development of smaller onshore gas fields.The procedure for the transfer of the licence interests is progressing asnormal through the relevant authorities.We are excited about the outcome of this report and look forward to progressingas quickly as possible towards first production and to becoming a fullyintegrated Netherlands exploration and production company."In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies,the information contained in this announcement has been reviewed and signed offby the Exploration Manager of Northern, Mr Graham Heard BSc (Hons), who hasover 30 years experience as a petroleum geologist.For further information please contact:Northern Petroleum PlcDerek Musgrove, Managing DirectorGraham Heard, Exploration ManagerTel: +44(0)20 7743 6080InvestecMichael AnsellAndrew ChenTel: +44(0)20 7597 5000Hansard CommunicationsChris RobertsBen SimonsTel. +44(0)20 7245 1100Further information on Northern Petroleum Plc is available via our website,www.northpet.comMMstb - millions of stock tank barrels of oilBscf - billions of standard cubic feet of natural gasENDNORTHERN PETROLEUM PLC