5 Apr 2011 07:00
Embargoed for release: 0700 on 5 April 2011
Northern Petroleum Plc ("Northern" or the "Company") Transfer of Operatorship to Shell - Re-Release
Following the release of this announcement at 17.54 on 4 April 2011 the Company is re-releasing the announcement at the requested embargo time - 07.00 on 5 April 2011. The content of the announcement remains unchanged.
Northern announces that Northern Petroleum (UK) Limited ("NPUK") has applied to the Italian authorities for the transfer to Shell Italia E&P S.p.A ("Shell") the role of Rappresentante Unico ("Operator") for six permits offshore west of Sicily; G.R17.NP, G.R18.NP, G.R19.NP, G.R20.NP, G.R21.NP and G.R22.NP, located in the thrust and fold belt to the west of Sicily. The transfer would enable Shell to progress work required to apply for drilling approvals in advance of the final decision as to whether an exploration well is to be drilled in the permits. The joint venture is currently finalising the subsurface evaluation.
Northern has acted as Operator of the permits during the 2D and 3D seismic phases of the exploration programme, the costs of which were met by Shell. Under the terms of the farm-in agreement Shell holds 55% in G.R17.NP, G.R18.NP, G.R19.NP and 70% in G.R20.NP, G.R21.NP and G.R22.NP, with NPUK holding the remaining equity interest in the permits.
- Ends -
For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7469 2900 Graham Heard, Exploration & Technical Director Cenkos Securities (NOMAD and Joint Broker) Tel: +44 (0) 131 220 6939 Ken Fleming / Beth McKiernan Jefferies International (Joint Broker) Tel: +44 (0) 20 7029 8000
Chris Snoxall Financial Dynamics Tel: +44 (0) 20 7831 3113
Billy Clegg / Edward Westropp Bishopsgate Communications Tel: +44 (0) 20 7562 3350 Nick Rome / Michael Kinirons
Glossary
2D, 3D Two / three dimensional (in relation to seismic surveys).
boe Barrels of oil equivalent.
Probable Probable reserves are those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable in this context and when probabilistic methods are used, there should be at least a 50 per cent probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves.
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 35 years experience as a petroleum geologist. He has compiled, read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE/WPC standard.
Notes to Editors:About Northern
Northern Petroleum Plc (NOP) is an oil and gas company with exploration, development and production assets in the Netherlands, Italy, UK and Guyane. The Company's strategy is to acquire low entry cost exploration, production and development assets. Through undertaking geological, geophysical and engineering work, Northern adds value to shareholders both from production and asset sales.
Northern currently has gas production from six fields in The Netherlands four of which it has recently as operator developed into production. In addition Northern has a small share in oil production from two fields in the South of England. Northern is well capitalised, has a track record of partnering with oil majors and is run by a senior and experienced management team.
Northern in Italy
It is in Italy that the Company manages its largest licensed exploration area, predominantly offshore, but includes five onshore permits in the Po Valley gas and oil province in the north of the Italy. Exploratory evaluation of six offshore thrust belt licences, on which Northern acquired in 2010 a 1520 km² 3D seismic survey, is being undertaken in partnership with Shell Italia E&P S.p.A.
In December 2010 Northern concluded an agreement for Orca Exploration Group Inc. to finance the drilling of the La Tosca prospect in the Longastrino permit in the eastern Po Valley Basin.
Also in 2010 ADX Energy Limited reported an oil discovery in Tunisian waters near to Northern's CR147 permit offshore of the Italian island of Pantelleria. Northern has mapped several prospects up-dip of the Lambouka-1 discovery well and outside the new 12 nautical mile zone of drilling exclusion.
The Italian assets contribute to 53.2 million boe of the reported net Probable oil reserves. Upon completion of the agreement with Azimuth, Northern's net Probable reserves will be reduced to 45.2 million boe.
Northern is listed on the AIM market of the London Stock Exchange, www.northpet.com
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