9th Jun 2006 07:00
Embargoed for release: 0700 on 09 March 2006 Northern Petroleum Plc ("Northern" or the "Company") NORTHERN AWARDED PRODUCTION LICENCE FOR THE DEVELOPMENT OF THE PAPEKOP OILFIELD WITH RESERVES OF 11.4 MILLION BOE NET TO NORTHERNNorthern is delighted to announce that NP Netherlands Limited, ("NPN"), awholly owned subsidiary, has been awarded a 25 year Production Licence forPapekop from the Ministerie van Economische Zaken ("the Ministry") dated 7thJune 2006.NPN has been informed that there will be a 40% State participation in thelicence, with NPN the holder of the remaining 60%. Such participation will beon the basis of being a fully paying partner in all respects from licenceaward, and payment of applicable back costs.During the application process, further work has been undertaken and audited byRPS Energy resulting in an upward revision of gross proven plus probablerecoverable reserves from those previously announced to 39.4 Bscf of gas and12.2 million bbls of oil. (NPN's share is 23.7 Bscf and 7.3 million bbls ofoil). This is an increase of 1.5 million bbls of oil and brings the totalNetherlands reserves to 56 million boe. (14.2 million bbls and 242.6 Bscf).Northern has also been advised that the Ministry has approved the transfer ofthe Papekop Production Licence from NPN, the original applicant, to theCompany's wholly owned Dutch subsidiary, NP Netherlands B.V.Derek Musgrove, MD of Northern, stated:"It has been a process requiring a patient understanding of the Netherlandsregulations and laws.We now embark upon an intense period of work to bring the Papekop fieldon-stream. We can now confirm various contractual relationships which haveawaited this event and thank those that have given their full support duringwhat has often been a time of waiting.We now go forward with financing in place from the recent placing of ‚£20million gross and the project finance facility of up to Euro 40 millionapproved by the Credit Committee of Standard Bank Plc."In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies,the information contained in this announcement has been reviewed and signed offby the Exploration Manager of Northern, Mr Graham Heard BSc (Hons), who hasover 30 years experience as a petroleum geologist. The reserve estimatesreported are based on the joint reserve and resource definitions of the Societyof Petroleum Engineers, the World Petroleum Congress and the AmericanAssociation of Petroleum Geologists.For further information please contact:Northern Petroleum PlcDerek Musgrove, Managing DirectorGraham Heard, Exploration ManagerTel: +44(0)20 7743 6080InvestecMichael AnsellTel: +44(0)20 7597 5000Panmure Gordon & CoKatherine RoeTel: +44(0)20 7459 3600Hansard CommunicationsChris RobertsBen SimonsTel. +44(0)20 7245 1100Further information on Northern Petroleum Plc is available via our website,www.northpet.comENDNORTHERN PETROLEUM PLCRelated Shares:
Cabot Energy