15th Mar 2016 09:47
LONDON (Alliance News) - Northern Petroleum PLC Tuesday said the winter work programme over its assets in Canada is currently under budget and will be followed by another work programme in the hope production can increase even further.
Northern Petroleum said the winter work programme on the Canadian assets has led to production breaking the 400 barrel a day threshold, and production is set to stay at that level throughout the rest of the year, it said.
"The recently acquired Rainbow assets are performing better than expected. We are benefiting from initial high rates of production as wells are restarted and the asset base appears to have plenty of scope to achieve our target of 400 barrels per day for this year and create the foundation for future growth," said Chief Executive Keith Bush.
The capital cost of the winter work programme, which began in late January, is expected to amount to USD600,000. Northern Petroleum also highlighted the USD1.3 million deposit placed with authorities as an abandonment deposit will be returned to the company once the asset has hit certain milestones.
"The company expects the full deposit to be returned during third quarter of this year. The capital cost of the programme and a possible further summer programme will be managed around the timing of the return of the deposit," said the company.
Later this month, a new programme will be launched with the hope of increasing production by a further 100 to 200 barrels a day, but said this will not be launched until warmer weather arrives.
Northern shares were trading up 2.8% to 2.57 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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