Canadian Reserves Update

Northern Petroleum Plc

("Northern Petroleum" or "the Company")

Canadian Reserves Update

Northern Petroleum, the AIM quoted oil company focusing on production led growth, announces an update on the certified reserves for its development and production assets in Canada. An independent reserves report was undertaken by McDaniel & Associates Consultants Ltd as at 30 September 2016, with the findings summarised below.

Highlights

§ Total Proven plus Probable ("2P") reserves of 1.9 million barrels of oil equivalent ("mmboe") attributable to the Company (97 per cent. oil)

- 1.3 mmboe of Proven ("1P") reserves (97 per cent. oil)

§ Net present value, using a 10 per cent. discount rate ("NPV10"), for 2P reserves of approximately US$23 million

- NPV10 of 1P reserves of approximately US$16 million

§ Increase in 2P reserves of approximately 30 per cent. since 31 December 2014, the date of the last independent reserves reports completed on the Company's Canadian assets

- reserves increase is in addition to approximately 0.155 million barrels of cumulative production since 31 December 2014

§ Reserves increase achieved despite an approximate 20 per cent. reduction in forecast oil price used in the recent evaluation due to the prevailing lower price environment

Keith Bush, Chief Executive Officer, commented:

"This reserves update demonstrates the progress the Company has made in Canada during the last two years, despite the extremely tough operating environment. The significant increase in reserves proves the strength of the Company's production base even under current market conditions. With additional projects identified in the Rainbow and Virgo areas, the improved reserves base will provide the core value necessary for the business to grow."

Reserves Report

Following the acquisition of additional assets in Canada ("the Rainbow Assets"), which completed in January this year, and the investment programme undertaken to increase production, an updated reserves report was commissioned by the Company. McDaniel & Associates Consultants Ltd, the Calgary based independent reserves auditors who reported on the Rainbow Assets in 2014 for the previous owners, were mandated to provide an updated report on the Company's Canadian assets as at 30 September 2016. The report includes the Rainbow Assets and the wells in the Virgo area, approximately 20 miles north of the Rainbow Assets.

Certified 2P reserves are 1.91 million barrels of oil equivalent ("mmboe") representing an increase of approximately 30 per cent. from the previous reports at 31 December 2014. The primary increase in reserves is attributed to the Rainbow Assets acquired in January 2016. These saw a 46 per cent. uplift in 2P reserves as a result of lower than expected decline rates and reduced operating costs making the wells economic at lower production rates and lower realised oil prices.

This increase has been achieved in addition to approximately 0.155 million barrels of oil produced during this period.

The table below summarises the findings of the report as at 30 September 2016.

For further information please contact:

Northern Petroleum Plc Tel: +44 (0)20 7469 2900

Keith Bush, Chief Executive Officer

Nick Morgan, Finance Director

Stockdale Securities Limited (Nominated Adviser and Joint Broker) Tel: +44 (0)20 7601 6100

Antonio Bossi 

David Coaten

FirstEnergy Capital LLP (Joint Broker) Tel: +44 (0)20 7448 0200

Jonathan Wright

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 CEO of Northern Petroleum, Mr Keith Bush, who has 25 years' experience as a petroleum engineer. He has read and approved the technical disclosures in this regulatory announcement. The technical disclosure in this announcement complies with the SPE/WPC standard.

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 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