9 Oct 2008 14:00
9th October 2008 Northern Petroleum Plc Preproduction Update
Northern Petroleum Plc announces that its wholly owned subsidiary, Northern Petroleum Nederland BV, ("Northern" or "the Company") has contracted services for a well service programme commencing in early November to make subsurface preparations to five wells for full production. This is being undertaken prior to delivery and installation of facilities. Additionally, Schlumberger Oilfield Services has been contracted to conduct an hydraulic fracture programme to the five wells at the same time.
Northern remains on track to meet its production target of gross initial production of 4670 boepd next year and should the fracture campaign be as successful as forecast, Northern would be positioned to exceed this target subject to timing of remaining planning permissions.
Detailed fracture design modelling on the wells has been carried out by industry specialists, Fracture Technologies Ltd., who designed the successful fracture programmes for the Waalwijk gas field wells. The Waalwijk reservoirs are directly analogous to the Wijk en Aalburg, Brakel and Ottoland reservoirs and were very successfully fractured improving production rates by a factor of two to three. The Carboniferous reservoirs as seen in Geesbrug and Grolloo have also undergone successful hydraulic fracturing in the offshore portion of the Southern North Sea Gas Basin.
The hydraulic fracture design modelling predicts similar improvements to Northern's wells. The first well in the sequence is Wijk en Aalburg, where the studies indicate that the initial production rate can be increased by up to 18 mmscf/d from the presently proven rate of 5 mmscf/d established in previous production tests.
- E N D S - Northern Petroleum Plc Tel: +44 (0) 20 7469 2900
Derek Musgrove, Managing Director
Chris Foss, Finance Director
Graham Heard, Exploration & Technical Director
Investec Tel: +44 (0) 20 7597 5000Michael Ansell / Patrick RobbBlue Oar Tel: +44 (0) 20 7448 4400Jerry Keen
Bishopsgate Communications (Press) Tel: +44 (0) 20 7562 3350
Nick Rome / Maxine Barnes
Buchanan Communications (Analysts) Tel: +44 (0) 20 7466 5000
Tim Thompson / Ben Willey / Ben Romney
Notes
Northern has recoverable Proven and Probable reserves of 76.5 million barrels of oil equivalence.
In the Netherland's the Company holds oil and gas reserves of 45.5 million boe recoverable. It is currently producing gas at Waalwijk and the offshore P12 fields. The planned development of six onshore oil and gas fields is being progressed through the Netherlands authorisation and planning processes which are both extensive and slower than most. Dyas BV. and EBN have interests in these projects. NPN is progressing an enhanced condensate recovery project at Waalwijk, where it is felt that ultimate recovery of petroleum liquids can be economically increased.
The Company holds and manages the largest licensed exploration area in Italy, over 13,000 km‚², predominantly offshore but includes 7 licences in the Po Valley oil and gas province in the north of the country where the drilling of the Savio 215 bcf gas prospect is being progressed. Through its holdings in licences in the southern Adriatic covering the Rovesti and Giove oil discoveries it has net Probable oil reserves independently assessed at 26.6 million barrels recoverable.
The Company is also a significant holder of licences in the south of England where it has a 10% interest in the production from the Horndean oil field and a 5% interest in the proposed Avington oil field development. These fields are in the Weald Basin where Northern, with a 50% interest, is advancing a four well drilling programme.
Northern has an excellent record of trading assets to enhance shareholder value. In 2007 two separate transactions with Dyas BV yielded a reported profit of ‚£19.7 million and in July 2008 the Company reached agreement to sell its interests in an underground gas storage project application for ‚£7 million with further contingent payments totalling ‚£3 million.
Northern has strong cash and receivables positions and an agreement with Standard Bank Plc to debt finance 65% of its oil and gas field developments in The Netherlands. This has not to date been drawn upon.
Further information on Northern is available at www.northpet.com.
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