9th Apr 2014 10:12
LONDON (Alliance News) - Northern Petroleum PLC Wednesday said that it has decided to relinquish the PEDL256 and PEDL155 licences, which contain its Havant prospect, following consultation with joint-venture partners.
The company said it will continue to further appraise its PEDL233 and PEDL126 licenses to produce a viable development plan for commercial production.
However, the 4.3 million barrels of 2P reserves assigned to these assets have been reclassified as 2C contingent resources, following a meeting with the operator of PEDL233 and analysis of the Markwells Wood discovery in PEDL126. A 2P rating means that the reserves are proven and probable, while a 2C rating is a best estimate of contingent resources.
Northern Petroleum noted that its wider UK asset portfolio is not its primary focus, and its UK assets are for sale. It has received a number of expressions of interest in these assets. However, none have progressed yet. As the assets have a limited capital commitment forecast, and require little management time, it said it is prepared to wait for a fair offer.
Shares in Northern were trading down 3.2% at 26.15 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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