19 Jan 2009 14:00
NORTHERN PETROLEUM PLC Site Construction Works Start on Two Exploration Wells
Northern Petroleum Plc announces that its wholly owned subsidiary Northern Petroleum Nederland B.V ("NPN") has commenced well site construction works at Tiendeveen which with Nieuwendijk forms a two well exploration drilling programme being carried out in The Netherlands during the first part of 2009.
Tiendeveen is a gas prospect with a mean un-risked potential gas in place of 67 bcf. located 4km. northwest of the Geesbrug gas field development on the Drenthe III licence in northeast Netherlands.
Site preparation works will commence shortly at Nieuwendijk, an oil prospect with a mean un-risked reserve potential oil in place of 56 million barrels close to the Ottoland oil field development in southwest Netherlands.
In both licences the costs will be shared and the interests are currently held,
Northern Petroleum Nederland B.V. 45%
EBN 40%Dyas B.V. 15%
The wells will be drilled under the three well drilling contract announced on 15th September 2008. The third well remains at Northern Petroleum Nederland's option. All necessary pre-drilling approvals are in place for both the Tiendeveen and Nieuwendijk wells. Those for the Papekop production well are still awaited.
These wells fall under the terms of agreements between NPN and Nederlandse Aardolie Maatschappij B.V. ("NAM") detailed in announcements made on 14th June 2005 and 12th August 2005.
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.
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For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7469 2900
Richard Latham, Chairman
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 / Toby Gibbs
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 Romney
Notes to Editors:
Northern Petroleum ("Northern") has recoverable Proven and Probable reserves of 76.5 million barrels of oil equivalence.
Following a deal with the joint Shell and ExxonMobil subsidiary, NAM, Northern became the Netherland's second largest onshore oil company in terms of oil and gas reserves, with 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. Partners in these projects include Dyas B.V., EBN and NAM. Northern recently sold its interest in the Waalwijk Underground Gas Storage project application for an overall consideration of £10 million.
Northern manages the largest licensed exploration area in Italy, over 13,000 km ², predominantly offshore but includes seven licences in the Po Valley oil and gas province in the north of the country where the drilling of the Savio 232 bcf gas prospects 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. It has recently signed a deal with Shell Italia refunding Northern's past costs and providing for Shell Italia to fund the next phases of exploration of a potential new oil province in the extension of the Apennine thrust system offshore Sicily.
In the UK the Group 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 Avington development. In 2009 it is planning to drill an eastward extension of the Horndean oil field. Northern has a 50% interest in the venture.
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