11 Jun 2015 07:00
Northern Petroleum Plc
("Northern Petroleum" or "the Company")
Production restart
Northern Petroleum, the AIM quoted oil company focusing on production led growth, provides the following update regarding production activities in north west Alberta, Canada.
Highlights
§ Well 100/16-19 now producing following the purchase and installation of a production package
§ Well will be produced at between 75 and 100 barrels of oil per day ("bopd")
§ At US$55 WTI, operating net back after royalty is forecast to be approximately US$30 per barrel
§ Well 102/15-23 still forecast to restart in Q3 following remedial maintenance on pipeline by local operator, which has now commenced
Keith Bush, Chief Executive Officer, commented:
"It is an important achievement to re-establish production with an operating configuration that will maximise net back and cashflow in the current oil price environment. With the approval of the remedial maintenance work by the local operator, 15-23 should also be in production in Q3 which will combine with 16-19 to provide valuable cashflow for the group. The operating team will continue to focus on bringing more behind pipe production back on efficiently."
Production operations
100/16-19
A production package for the 100/16-19 well was purchased and following the implementation of some design changes was installed on the well pad at the beginning of June. The package includes an 800 barrel storage tank, separator and flare stack. The larger storage tank will provide better onsite oil and water separation and a reduction in regular trucking movements.
Following a period of commissioning of the new package, the well started production on 7 June 2015 and has flowed without incident on pump at a rate in excess of 100 bopd. The well is expected to produce at between 75 and 100 bopd, dependent upon future reservoir performance and associated water production.
102/15-23
The pump on 102/15-23 has now been installed and the local operator, who owns and manages the pipeline and processing infrastructure, has commenced a programme of maintenance required to ensure the integrity of the pipeline that the well is tied into. This work is expected to take four to six weeks, after which production will restart from the well with a planned initial production rate of approximately 150 bopd. Reservoir performance and water cut will then determine future production rates and decline.
-Ends-
For further information please contact:
Northern Petroleum Plc Tel: +44 (0)20 7469 2900
Keith Bush, Chief Executive Officer
Nick Morgan, Finance Director
Westhouse Securities Limited (Nomad and Joint Broker) Tel: +44 (0)20 7601 6100
Alastair Stratton
Robert Finlay
FirstEnergy Capital LLP (Joint Broker) Tel: +44 (0)20 7448 0200
Jonathan Wright
David van Erp
Note to Editors:
Northern Petroleum is an oil and gas company focused on production led growth. The Company is undertaking a redevelopment and production project in north west Alberta and has a broader portfolio of exploration and appraisal opportunities in countries of relatively low political risk, primarily Italy. Comprehensive information on Northern Petroleum and its oil and gas operations, including press releases, annual reports and interim reports are available from Northern Petroleum's website: www.northernpetroleum.com