12 Nov 2010 07:00
Embargoed for release: 07.00 on 12th November 2010
Northern Petroleum Plc ("Northern") Northern Drilling Well in West Sussex
Northern Petroleum Plc (AIM:NOP), is shortly to commence drilling the Markwells Wood -1 well to test a target with a mean potential independently assessed at 35.0 million barrels of oil in place, with an upside potential of 61.4 million barrels with a ten percent probability. The drilling equipment is currently moving onto the site.
The location is between the Horndean and Singleton producing oil fields and is assessed to be an extension of the former. The final measured depth will be 6009 ft (1831m) at a true vertical depth of 4528 ft (1380m). Electric logs will be run to evaluate their well potential.
Northern is committed to be a good neighbour to the local community and conducting its operations to very high standards of safety, health and reduction of environmental impact.
The NOP website (www.northpet.com) incorporates an RPS Energy report dated 10th February 2010 dealing with Markwells Wood.
Derek Musgrove, Managing Director, commented "The commercial case for drilling Markwells Wood -1 is compelling when the price level of oil is above $80 per barrel for Brent crude oil. The independent consultants RPS Energy report in February 2010 assessed the Markwells Wood recoverable Proven plus Probable oil reserves at 5.7 million barrels and stated a value of £24.75m based on an $80 oil price for our 50% interest in Markwells Wood.
Whilst we see greater potential in Italy and The Netherlands, it is important that we are pursuing and realising shareholder value for the oil discoveries at Markwells Wood, Baxters' Copse and Hedge End. If we are not offered the value of the UK assets through a sale, then we will realise the value by drilling and producing the assets."
The Licence Partners in the Markwells Wood well are:
Northern Petroleum (GB) Limited 50%
Magellan Petroleum (UK) Limited 40%
Egdon Resources U.K. Limited 10%
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.
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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 Tel: +44 (0) 131 220 6939
Jefferies International (Joint Broker) Tel: +44 (0) 20 7029 8000
Chris Snoxall Financial Dynamics Tel: +44 (0) 20 7831 3113
Billy Clegg / Edward Westropp
Bishopsgate Communications Tel: +44 (0) 20 7562 3350
Nick Rome / Michael Kinirons
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 equivalent ("mboe"). In the Netherlands, where Northern has P2 reserves of 42.5 mboe, Northern has five gas fields in production. In Italy, where Northern has P2 reserves of 53.16 mboe, Northern is partnered with Shell and is pursuing a farm-out strategy. In the UK, Northern has 7.02 mboe. In Guyane, Northern is partnered with Tullow, Shell and Total.
Northern is well capitalised, has a track record of partnering with oil majors and is run by a senior and experienced management team.
Once Wijk en Aalburg is brought on production, Northern is forecasting a production rate in excess of 2,250 barrels of oil equivalent per day. 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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