10 Mar 2011 07:00
Embargoed for release: 07.00 on 10 March 2011
Northern Petroleum Plc ("Northern" or "the Company" (AIM: NOP)) Well spuds in potential new South American oil basin
Northern announces that operations have commenced on drilling the Zaedyus prospect, with well GM-ES-1, in the Guyane Maritime Permit. Tullow Oil ("Tullow"), the Operator, believes the well has the potential to open up a major new oil province in Guyane (French Guiana) with a significant number of further prospects and leads already identified. Tullow has stated that the Zaedyus prospect has an estimated P10 prospective resource of 700 million barrels and is geologically analogous to its Jubilee field, located off the coast of Ghana.
Tullow [27.5%] is Operator of the Guyane Maritime Permit in which Northern holds a 1.25% beneficial interest. The other Joint Venture partners are Shell E&P France SAS [45%] ("Shell"), Total E&P Guyane Francaise SAS [25%] ("Total") and Wessex Exploration (1.25% beneficial).
The GM-ES-1 well is located offshore Guyane some 50 kilometres from the boundary with Brazil. The ENSCO 8503 rig will drill the well, GM-ES-1, to a total depth of approximately 6500 metres subsea, with the well targeting one of several prospects in major undrilled Late Cretaceous deep water channel fan systems identified from the extensive 3D seismic survey acquired in 2009-10.
Graham Heard, Exploration & Technical Director of Northern, commented:
"At Northern we are very excited that drilling operations have commenced on this first exploration well on the Guyane Maritime Permit. This is an unusual opportunity for us as a company to participate alongside a successful explorer such as Tullow and two major oil companies, Shell and Total, in the first well targeting a new exploration area of importance. This basin has significant exploration potential and we keenly anticipate the results from the Zaedyus prospect which will determine future exploration activity in the area."
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For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7469 2900 Chris Foss, Director of Finance, Legal & Corporate Affairs
Graham Heard, Exploration & Technical Director
Cenkos Securities (NOMAD and Joint Broker) Jon Fitzpatrick Tel: +44 (0) 20 7397 8900 Ken Fleming / Beth McKiernan Tel: +44 (0) 131 220 6939 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
Glossaryboepd barrel(s) of oil equivalence per dayP10 Reserves are with those with a notional 10% probability - "Possible" of
being produced using current or likely technology at current prices, with current commercial terms and government consent
P2 Proven plus Probable reservesProbable 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.
Proved Proved reserves are those quantities of petroleum which, by
analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions.
mmbo Million barrels of oilmmboe Million barrels of oil equivalence2D, 3D two / three dimentional (in relation to seismic surveys)
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
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 from production and asset sales.
Northern has total P2 reserves of in excess of 102 million barrels of oil equivalence ("mmboe"). In The Netherlands, where Northern has P2 reserves of 42.5 mmboe, Northern has six gas fields in production. In Italy, where Northern has P2 reserves of 53.16 mmboe, Northern is partnered with Shell and is pursuing a farm-out strategy. In the UK, Northern has 7.02 mmboe of P2 reserves. In Guyane, Northern is partnered with Tullow, Shell and Total. Northern's reserve position is detailed within the Company's 2010 Interim Report dated 29th September 2010 which is available on Northern's website.
Northern is well capitalised, has a track record of partnering with oil majors and is run by a senior and experienced management team.
Now that Wijk en Aalburg is in production, Northern is forecasting a production rate of between 2,200-2,300 boepd. This rate of production will increase as additional oil and gas fields in the Netherlands come on stream.
Northern is listed on the AIM market of the London Stock Exchange, www.northpet.com
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