30 Jul 2007 07:00
Embargoed for release: 0700 on 30th July 2007
Northern Petroleum Plc ("Northern" or the "Company") TRANSFER OF LICENCES
Northern announces that the Ministerie van Economische Zaken ("the Ministry") in the Netherlands has published its consent to the subdivision of the Drenthe licence held by Nederlandse Aardolie Maatschappij B.V. ("NAM"). The Ministry has also published its consent to the transfers of the new Drenthe III and IV licences between NAM and Northern's wholly owned Netherlands subsidiary Northern Petroleum Nederland B.V. ("NPN"). Preparation of the subsequent documentation is underway.
The new Drenthe III and IV licences contain the Geesbrug and Grolloo gas discoveries respectively that Northern has secured under the terms of its previously disclosed agreements with NAM. NPN also has a commitment to NAM to drill two exploration wells on the Drenthe III licence.
Derek Musgrove, Managing Director of Northern, stated:
"Northern is delighted to have received the approval for the last of the transfers related to the agreements made with NAM in August 2005. This is another milestone and with the imminent completion of the Waalwijk Licence transfer, Northern can now progress its gas operations in the Netherlands. The Ottoland oil field development is underway and there are the five other field developments in the pipeline. Add to those the implementation of plans for Waalwijk with an exploration programme on four licences it an exciting period ahead for Northern."
Based upon the 2006 report carried out by RPS Energy ("RPS"), a leading independent reservoir engineering consultancy group, the gross field reserves of the Geesbrug and Grolloo fields has been estimated as:
Proved Proved + Probable Proved + Probable + Possible Liquids 0.7 million bbls 1.8 million bbls 3.3 million bbls Gas 181 bscf 324 bscf 489 bscf
The licence interests are subject to the participation of Energie Beheer Nederland B.V. ("EBN"), a State owned company,at a 40% level in the field developments in return for a pro-rata share of Northern sunk costs and a pro-rata share of all future costs of the joint ventures. In accordance with the April 2007 Heads of Agreement with Dyas BV ("Dyas"), NPN has agreed to transfer 25% of its post-EBN interest in these licences to Dyas.
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 7743 6080InvestecMichael Ansell / Paul BrettTel: +44 (0)20 7597 5000Panmure Gordon & Co
Katherine Roe / Ashton Clanfield
Tel: +44 (0)20 7459 3600
Bishopsgate Communications Limited
Maxine Barnes / Nick Rome
Tel: +44 (0) 20 7562 3350
NORTHERN PETROLEUM PLC