27 Aug 2010 07:00
Embargoed for release: 07.00 on 27 August 2010
Northern Petroleum Plc ("Northern" or "the Company") Operational Update Directorate Change
Northern Petroleum Plc (AIM:NOP), the independent oil and gas exploration, development and production company announces an operational update on its Netherlands, Guyane, Italy and UK assets and a Directorate change.
The Netherlands
At the Brakel gas fieldthe final completion phase of thedevelopment has been reached. System integritychecks and pre-commissioningactivities are ongoing with the target of achieving firstproduction before the end of September 2010.
Northern has received all approvals required for the development of the Wijk en Aalburg field. Thesite development activities were started with the commencement of layingfoundations for the process equipmenton August 23rd.
These two fields have the potential to increase production in excess of 1100 boepd net to Northern.
At the Waalwijk gas field Northern is modifying thecompression configuration during a planned shutdown in September to maintain production levels and extend field life.
The Geesbrug single well gas field has now delivered 50 million nm³ (Northern 45%) since coming on production in January 2010. Production from the Grolloo gas field has been temporarily suspended for a mechanical workover prior to recommencing production.
Progress towards the granting of a loan facility to enable the faster development of the Netherlands reserves is being progressed as production revenues increase from the additional fields being brought into production.
Guyane
Following Tullow Oil's Interim Results announcement on 25th August, Northern would like to note its comments in respect of the exploration acreage which it shares with Tullow in Guyane:
Tullow, after a successful farm-down process to Shell (33%) and Total (25%) in 2009, has retained an interest of 39.5% in the 35,000 sq km Guyane Maritime licence offshore French Guiana. Northpet Investments Limited holds a 2.5% interest, in which Northern owns a 50% equity interest. A number of Jubilee-type leads have been identified in the south-eastern part of the block and the acquisition of a large 3D seismic programme (2,500 sq km) was completed in early February 2010. Processing and interpretation of this dataset is ongoing and planning for the first well on the material Zaedyus prospect is continuing, with a target spud date of February 2011.
Italy
Onshore within the Longastrino permit the La Tosca prospect defined on 3D seismic data and with mean gross prospective resources of 44 Bcf and an upside of 85 bcf is being progressed for drilling. Farmout negotiations are ongoing to bring additional partners into the permit for the drilling.
The 3D seismic data acquired over the significant prospects in the West of Sicily Thrust and Fold Belt is nearing completion of initial processing and work will then commence with interpretation to select a drilling location.
The Company took the decision to seek suspension of the decrees on permits C.R146.NP and C.R147.NP following the current legislative uncertainty regarding offshore operations. These permits are being reviewed by potential farmin partners. ADX Energy is drilling the Lambouka-1 well in Tunisian waters close to C.R147.NP and the well is being followed closely as the expected target reservoirs are equivalent although the structural setting of the prospect being drilled is different to the prospects mapped on this permit.
The company continues to seek potential partners in those permits held on a 100% basis and its track record with farmouts is good. Of the ten fully awarded offshore licences six have been farmed out to Shell Italia.
United Kingdom
Due to greater than anticipated interest and a late entrant to the sales process for the UK assets and extension into a holiday period for much of the industry the closing date for offers has been extended and will be re-established after consultation with the interested parties. The UK assets under offer include 6.82 million barrels of Proven and Probable oil reserves.
As the Operator, NOP is finalising the drilling programmes for two wells and activities will not be held up for the sales process. The construction of both the Havant and Markwells Wood well sites are now completed. Negotiations are progressing to secure a surface location from which the Hedge End well can be drilled. Providence Resources as Operator of PEDL 233 (NOP: 50%) has commenced the well planning to drill the Baxters Copse well from its Singleton oilfield facilities.
An RPS Energy Report attributes to PEDL 233 gross 2P and 3P reserves of 5.36 and 15.06 million stock tank barrels respectively of undeveloped reserves (50% Northern), significantly larger than previous estimates. There are also plans to further evaluate the other prospects within PEDL 233.
Directorate Change
Nigel Wright, Finance Director, has ceased to be a director of the Company and is no longer in its employ. Chris Foss, Executive Director, Legal and Corporate Affairs will re-assume those responsibilities which he held until April 2010. There is unlikely to be any disruption to the Company's business.
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 Petroleum Plc, Mr. Graham Heard CGeol FGS, who has over 35 years experience as a petroleum geologist.
- Ends -
For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7469 2900 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
Notes to Editors:About Northern
Northern Petroleum Plc is an independent oil and gas Exploration Company quoted on the AIM market in London focused on the European Union and nearby areas. Comprehensive information on Northern and its oil and gas operations, including all press releases, annual reports and interim reports are available from Northern's website at www.northpet.com.
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