23 Jul 2007 14:00
Embargo until 1400hrs 23 July 2007.
Northern Petroleum Plc ("Northern" or "the Company") Ottoland-1 Well Testing - Progress Statement
Northern announces that the first phase of testing on Ottoland has now been completed. Encouragingly the conclusion from the data is that the flow rates of up to 1447 bopd and 0.6 mmscf/d gas have been established from less than one half of the section interpreted as net pay in the 405 metre horizontal part of the well section.
A work-over of the well will be undertaken to further perforate the reservoir unit and a second phase of testing will be conducted to establish the full potential of the whole of the horizontal well thereby allowing the design of optimum production facilities. These activities will require a workover rig and the availability of sufficient tank facilities during the test periods.
It is likely to be carried out in the near future in conjunction with other planned activities at Brakel or Papekop.
The applications and permits to allow continuous production from Ottoland will now be progressed without the need to await these further tests.
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.
Derek Musgrove, Managing Director of Northern, stated:
"We have been pleased by the reservoir quality in this well. The work-over is needed to increase the well productivity so important in firming up our production and marketing plans."
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 PlcDerek Musgrove, Managing DirectorChris Foss, Finance DirectorGraham Heard, Exploration and Technical DirectorTel: +44 (0)20 7743 6080InvestecMichael Ansell / Paul BrettTel: +44 (0)20 7597 5000Panmure Gordon & CoKatherine Roe / Ashton ClanfieldTel: +44 (0)20 7459 3600Bishopsgate Communications LimitedMaxine Barnes / Nick RomeTel: +44 (0) 20 7562 3350Northern 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 with works on the first two, Ottoland and Brakel currently underway.
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 through the recently announced deal with Dyas. The Dyas deal also including an International Strategic Alliance for New Business.
The Company has recently 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 addition an interest in the P12 gas field and two undeveloped gas discoveries were acquired from Dyas. The NPN deal with Dyas is the second gas production acquisition in 2007 to date.
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