14 May 2008 07:00
Embargoed for release: 0700 14th May 2008
Northern Petroleum Plc ("the Company")
Northern Petroleum Plc (AIM:NOP) is an oil and gas production, development, exploration and asset trading company with a political exposure limited to countries in the European Union.
Planning permission granted to drill extension of oil field
Northern Petroleum (GB) Limited ("Northern") is pleased to announce that it has received planning approval to drill from a site in West Sussex to the north of Forestside in West Sussex. The Markwells Wood no. 1 well will target a prospect in Licence PEDL 126 that is mapped to be an eastward extension of the currently producing Horndean Field of which Northern is a partner.
The Company and its professional advisors have analysed data from and between the Horndean and Singleton North oilfields lying some 15 km apart and have concluded that they are in essence the same oil accumulation. Markwells Wood is the first site of two within the licence where structures have been mapped to exist above the common oil-water contact.
Site construction is anticipated to commence later this year and drilling to take place shortly thereafter.
Northern is particularly conscious of its commitments to be a good neighbour to the local community and are committed to health and safety and the environment.
All operations will be conducted with those desires in mind.
Richard Latham, Chairman of the Company said:
"Northern compliments the planning officers and all other parties involved in the Markwells Wood drilling decision for their thorough professionalism and their many helpful suggestions to improve our plans to fit the local circumstances. As to the overall issue we believe the voting of 10 in favour, none against and one abstention is indicative of the real issues of drilling at this site, the preservation and even possible improvement to ancient soils and many safeguards in place render the operation as compatible with the local community and environment as possible."
PEDL 126 partners are:
Northern Petroleum (GB) Ltd 50%
Magellan Petroleum (N.T.) Pty Ltd 40%
Encore Oil Plc 10%
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
Derek Musgrove, Managing Director
Chris Foss, Finance Director
Graham Heard, Exploration and Technical Director
Tel: +44 (0)20 7469 2900
Investec
Michael Ansell / Patrick Robb
Tel: +44 (0) 20 7597 5000
Panmure Gordon & Co
Katherine Roe / Ashton Clanfield
Tel: +44 (0)20 7459 3600
Bishopsgate Communications Limited
Maxine Barnes / Nick RomeTel: +44 (0) 20 7562 3350Notes to Editors:
In The Netherlands Northern is currently embarked upon a programme to place two oil fields and four gas fields into production. In Italy Northern is seeking marine fleet, service and refining companies as partners to appraise and produce two offshore oilfields with 53.2 million barrels or reserves.
The Company has 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. A second deal brought in gas production from block P12 operated by Wintershall, also in The Netherlands.
Northern's Netherland partner list is impressive, comprising NAM, Dyas, EBN, Essent and Wintershall.
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 two other wells in the area.
Overall the Company is working on plans to drill 10 wells across the portfolio in the next 18 months.
Further information on Northern is available at www.northpet.com.
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