9 Apr 2014 07:00
Northern Petroleum Plc
("Northern Petroleum" or "the Company")
UK Asset Update
Northern Petroleum (AIM: NOP) provides the following update on the Company's UK assets. Following a recent operating committee meeting with the operator of licence PEDL233 containing the Baxters Copse discovery, which is currently being reviewed for further appraisal and possible development, and subsequent to an internal exercise analysing the Markwells Wood discovery in PEDL126, the 4.3 million barrels of 2P reserves assigned to these assets will be reclassified as 2C contingent resource. While both assets have the potential to become commercial discoveries, the Company believes that further appraisal needs to be undertaken to produce a viable development plan which would lead to commercial production.
After extensive consultation within the joint venture partners in the PEDL256 and PEDL155 licences, which contain the Havant prospect, the Company has decided to relinquish these licences.
Northern Petroleum's wider UK asset portfolio, which includes minority interests in the producing Horndean and Avington oil fields and the offshore Isle of Wight exploration licence, is not a primary focus for the Company. As previously announced, these UK assets are for sale and the Company has received a number of expressions of interest, however no acceptable offer has progressed yet to a final divestment. With limited capital commitment forecast and management time required on the assets and positive cashflow from the production, the Company is prepared to wait to seek out a fair offer for the assets.
Keith Bush, Chief Executive Officer of Northern Petroleum, commented:
"The Horndean and Avington fields provide a small but consistent source of income to the Company and the value of this will be the primary consideration in the evaluation of any offer we receive for the UK portfolio. While the Company still holds these assets, management time and capital allocated to the UK will be limited. "
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In Accordance with 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 Petroleum, 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.
For further information please contact:
Northern Petroleum Plc Tel: +44 (0)20 7469 2900
Keith Bush, Chief Executive Officer
Graham Heard, Exploration and Technical Director
Westhouse Securities (Nomad and Broker) Tel: +44 (0)20 7601 6100
Richard Baty, Corporate Finance
Henry Willcocks, Corporate Broking
FTI Consulting Tel: +44 (0)20 3727 1000
Edward Westropp/ Shannon Brushe
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