20 Jun 2007 07:00
Embargoed for release: 0700 on 20 June 2007
Northern Petroleum Plc ("Northern" or "the Company") Ottoland oil drilling successful
Northern is pleased to announce and that the Ottoland-1ST2 has successfully completed drilling operations. The well encountered 210 metres of Upper Bunter reservoir sandstone above the oil water contact in a near horizontal well section of 405 metres. This compares with the Ottoland-1 well drilled in 1987 which tested oil at a rate of 211 bopd over an interval of only 14 metres of Upper Bunter sandstone in a near vertical well.
Initial interpretations lead to an expectation of an increase in the hydrocarbon volumes in this part of the field.
The well is now being prepared for the running in hole of a slotted production liner following which the rig will be moved off site and the flow rate testing operations undertaken in the near future.
Derek Musgrove, Northern's Managing Director, stated:
"This was both a successful and challenging drilling operation. Though initial projections of increases to reserves should be treated with caution at this stage it is a great result for the patient shareholders and the Northern team alike."
The well reached a Total Measured Depth of 2993 metres (2176 metres True Vertical Depth) with an offset of 1300 metres from the surface location in a south-easterly direction. Drilling operations progressed successfully through horizontal to an angle of 97 degrees.
Northern Petroleum Nederland B.V. ("NPN") currently holds an 85% interest in the Ottoland field, the other partner in the license is Dyas B.V., a 100% subsidiary of the privately owned SHV Holdings NV. The NPN interest will reduce to 45% if the Minister of Economic Affairs designates Energie Beheer Nederland B.V. ("EBN"), a State owned company, as a 40% participant in the field in return for a pro-rata share of sunk costs and a pro-rata share of all future costs of the joint ventures.
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 30 years experience as a petroleum geologist.
For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7743 6080
Derek Musgrove, Managing Director
Chris Foss, Finance Director
Graham Heard, Exploration and Technical Director
Investec Tel: +44 (0) 20 7597 5000
Paul Brett / Patrick Robb
Panmure Gordon & Co Tel: +44 (0) 20 7459 3600
Katherine Roe / Ashton Clanfield
Bishopsgate Communications Limited Tel: +44 (0) 20 7562 3350
Nick Rome / Maxine BarnesNotes to Editors:Northern Petroleum Plc
Northern Petroleum Plc is an AIM listed oil and gas production, development and exploration company with core interests under its management in The Netherlands, Italy and the United Kingdom.
Northern is currently embarked upon a programme to place two oil fields and four gas fields into production in the Netherlands.
In the Netherlands the Company has this year acquired the management interests in the producing Waalwijk gas field where it intends to implement plans to increase late phase gas production and move to develop a 30 Bcf underground gas storage facility alongside Star Energy and Essent. In a separate agreement with Dyas the Company has acquired an interest in the producing P12 gas field and two undeveloped gas fields.
Northern's Netherlands partner list is impressive.
The Company has the second largest exploration position in Italy of licences under management where activities can be expected to pick-up as the result of the extra funds now available. In addition the Company has announced plans to drill a projected eastward extension of the producing Horndean oil field in West Sussex and another exploration well in the county.
Further information on Northern is available at www.northpet.com.
NORTHERN PETROLEUM PLC