28 Jul 2011 07:00
Embargoed for release: 0700 on 28 July 2011
Northern Petroleum Plc ("Northern", "the Group" or "the Company") Operations Update - Southern Adriatic
Northern (AIM:NOP) announces an update on its Southern Adriatic permits containing theRovesti and Giove oil discoveries,which hold a combined 53.2 million barrels of 2P reserves.
Highlights:
* Approval of increase in work programme on each of Southern Adriatic permits F.R39 .NPand F.R40.NPto include 3Dseismicof up to a maximum of 600 sqkm by Ministry of Economic Development; * Contract signed for a 2D seismic survey over permits F.R39.NP and F.R40.NP, with survey scheduled to commence in late Q3 / early Q4 2011 to assist with de-risking of significant exploration prospects; and * Planning for two 3D seismic surveys scheduled for Q4 2011 will now intensify, targeting the Rovesti and Giove oil discoveries and asignificant exploration prospectwithin theF.R39.NP and F.R40.NPpermits.
Northern has been advised by the Ministry of Economic Development (the "Ministry") that it has approved an increase in the work programmes for permits F.R39.NP and F.R40.NP from 300km of 2D seismic to include in addition up to a maximum of 600 sqkm of 3D seismic acquisition on each permit.
The first operation to be conducted under this enhanced work programme will be the acquisition of 2D seismic, which Northern has just contracted CGG Veritas Service SA ("CGG Veritas") to undertake. This survey is planned to enable the de-risking of several exploration prospects within the two permits, and compliment the planned 3D seismic acquisition focused on the Rovesti and Giove oil discoveries. Subject to receipt of necessary approvals, the CGG Veritas 2D survey is scheduled to commence in late Q3 / early Q4 2011.
The Ministry approval allows us to now intensify our planning of the next phase of work on these permits. A 3D seismic survey is scheduled, subject to receipt of necessary approvals, for Q4 2011 to cover the Rovesti and Giove oil discoveries and is also aimed at the de-risking of one significant prospect within the F.R39.NP and F.R40.NP permits. This 3D seismic acquisition, and the processing of the resultant data, will be the first activity funded entirely by Azimuth Limited ("Azimuth"), a specialist global E&P business, under the terms of the agreement first announced on 25 March 2011.
The Giove and Rovesti oil fields have previously been independently assessed by Blackwatch Petroleum Services to have 53.2 million barrels of 2P oil reserves. In addition, as a result of work undertaken to date, Northern recognises the potential both for oil prospects with a mean of over 3 billion barrels of oil in place and gas prospects with a mean of over 2 Tcf of gas in place, which is over 1 billion barrels oil equivalent of prospective resource in the two permits, split approximately equally between oil and gas prospects.
Derek Musgrove, Managing Director of Northern, commented:
"Exploration of the Southern Adriatic area is a major priority for Northern, so I am delighted to be able to report greater visibility on our forward plans as a consequence of the approval of our enhanced work programmes for the F.R39.NP and F.R40.NPpermits. CGG Veritas should be commencinga 2D surveyin late Q3 / early Q4, and we look forward to also firming up the 3D surveys, the first activities with our new partner, Azimuth, within our 2011 programme.
"I further note the recent offshore permit award announced by ADX Energy, which after a twelve month hiatus I am hopeful is a positive sign of the start of the award of new offshore permits to both Northern and other applicants."
Aaron D'Este, CEO of Azimuth, commented:
"Receiving Ministry approval for the enhanced work program is excellent news. We already know that there is an active petroleum system in the Adriatic basin and 3D seismic is the natural next step to highlight commercial accumulations. Working closely with our partner, we will complete the planned surveys as quickly and safely as possible, and then move on to defining drillable targets early in the New Year."
Glossary
2P Proved and Probable
2D, 3D Two/three dimensional (in relation to seismic surveys)
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.
Tcf Trillion cubic feet
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 & Technical Director of Northern, 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 Derek Musgrove, Managing Director Chris Foss, Director of Finance, Legal & Corporate Affairs Cenkos Securities (NOMAD and Joint Broker) Tel: +44 (0) 20 7397 8900 Jon Fitzpatrick 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:
About Northern
Comprehensive information on Northern and its oil and gas operations, including all press releases, annual and interim reports and Company presentations are available from Northern's website at www.northpet.com.
About Azimuth
Azimuth Ltd is a specialist E&P business backed by both Petroleum Geo-Services and Seacrest.
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