Cabot Energy Regulatory News (CAB)

Northern Petroleum Plc

("Northern Petroleum" or "the Company")

Onshore Italian permit farm out to Shell

Northern Petroleum, the AIM quoted oil company focusing on production led growth, announces that its wholly owned subsidiary, Northern Petroleum (UK) Limited, has signed a farm out agreement, which includes the agreed terms of a joint operating agreement, with Shell Italia E&P S.p.A. ("Shell"), a wholly owned subsidiary of Royal Dutch Shell PLC, in respect of its Cascina Alberto permit, which is located onshore, north west Italy.

Key terms

§ Farm out of an 80 per cent. equity interest in the Cascina Alberto permit and transfer of operatorship to Shell

§ Shell will pay US$850,000 in cash on completion

§ Shell will carry Northern Petroleum for the costs of the exploration campaign, which will include a carry on the acquisition of any new seismic until the seismic costs reach US$4 million and a carry on any exploration well until the well costs reach US$50 million

§ Shell have a pre-emptive right over the Company's remaining interest in the Cascina Alberto permit in the event of any change in control at the asset or corporate level

§ Completion is subject to approval of the interest transfer by the Italian regulatory authority

Keith Bush, Chief Executive Officer, commented:

"This farm in demonstrates the value inherent in Northern's Italian asset portfolio. Northern will continue to progress its permits and applications with the Italian authorities and partner with companies with larger resources, where appropriate, to maximise their value.

"We look forward to working with Shell as we explore the potential of the Cascina Alberto permit."

Cascina Alberto permit

The Cascina Alberto permit was awarded to Northern Petroleum in July 2014. The focus of the joint venture will now be the re-interpretation of existing seismic and subsurface analysis, which will determine if there is a requirement for further seismic acquisition to assist in the location of a possible exploration well.

There are no profits or book value attributable to the permit, since it was only granted in July last year, and the proceeds from the consideration will be used for the general working capital purposes of the Company.

-Ends-

For further information please contact:

Northern Petroleum Plc Tel: +44 (0)20 7469 2900

Keith Bush, Chief Executive Officer

Nick Morgan, Finance Director

Westhouse Securities Limited (Nomad and Joint Broker) Tel: +44 (0)20 7601 6100

Alastair Stratton

Robert Finlay

FirstEnergy Capital LLP (Joint Broker) Tel: +44 (0)20 7448 0200

Jonathan Wright

Camarco Tel: +44 (0)20 3757 4980

Billy Clegg

Georgia Mann

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 CEO of Northern Petroleum, Mr Keith Bush, who has 23 years' experience as a petroleum engineer. He has read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE/WPC standard.

Note to Editors:

Northern Petroleum is an oil and gas company focused on production led growth. The Company is undertaking a redevelopment and production project in north west Alberta and has a broader portfolio of exploration and appraisal opportunities in countries of relatively low political risk, primarily Italy. Comprehensive information on Northern Petroleum and its oil and gas operations, including press releases, annual reports and interim reports are available from Northern Petroleum's website: www.northernpetroleum.com