21st Dec 2010 07:05
Embargoed for release: 0705 on 21 December 2010
Northern Petroleum Plc ("Northern" or "the Company" (AIM: NOP)) Fourth New Netherlands Gas Field Put into Production
Northern announces that production has started from the at Wijk en Aalburg gas field in The Netherlands. The forecasted contracted gross gas sales volume from the Wijk en Aalburg field is 150,000 normal cubic meters per day (5.6 million standard cubic feet per day or 963 barrels of oil equivalence per day ("boepd"), 433 boepd net to Northern), which brings Northern's daily production capacity to the higher end of our forecasted 2200 - 2300 boepd.
On 16th December 2010 Northern Petroleum Nederland B.V. ("NPN") commenced commercial gas production from the Wijk en Aalburg field in the Andel III licence. This is the fourth of six onshore oil and gas fields that, together with its Joint Venture Partners, NPN has brought into production under a 2005 agreement between NPN and Nederlandse Aardolie Maatschappij (NAM), the joint Shell / ExxonMobil company in The Netherlands (announced 14th June 2005).
NPN, the Operator, has a 45% licence interest. Partners, EBN, the Netherlands' state participant and Dyas B.V. ("Dyas"), hold 40% and 15% interests respectively.
Chris Foss, Northern's Director of Finance, Legal & Corporate Affairs, commented:
"We have achieved earlier first production than expected through the sterling efforts of the operations team over recent months, latterly during sub zero weather conditions. Our target of a daily production capacity at the higher end of our forecasted 2200 - 2300 boepd has been achieved. We can take pleasure that our 2010 new production from Brakel and Wijk en Aalburg has coincided with a rise in received prices of little over 27% during this year. The next stage is to focus on the development of the Papekop and Ottoland oil fields and further development drilling at Geesbrug."
Chairman of the Executive Board of EBN, Jan Dirk Bokhoven,said:
"EBN once again congratulates Northern Petroleum with a job well done. As with Brakel, bringing this field in production was a challenge, but we are happy to say that Wijk en Aalburg production will aid EBN in developing energy sources in a manner that is profitable for Dutch society."
Peter Veenhof, Managing Director of Dyas,also commented:
"We are delighted with the commencement of production on the Wijk en Aalburg gas field before year end 2010, which unlocks the commercial development of a fourth small gas field in the Netherlands."
*Gas prices of between €0.221 to €0.240 per normal cubic metre, or approximately $7.94-$8.62 per thousand standard cubic feet ("mscf") were achieved in November 2010.
Glossary
boepd - barrel(s) of oil equivalence per day
cf - cubic feet
mscfd - thousand cubic feet per day
mmboe - million barrel of oil equivalence
Nm - normal metres
P2 - Proven plus Probable reserves
Probable - 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.
scf - standard cubic feet
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.
- Ends -
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
Sophie Hull, Head of Corporate Communications
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 / Marco Baruzzi
Financial Dynamics Tel: +44 (0) 20 7831 3113 Billy Clegg / Edward Westropp Bishopsgate Communications Tel: +44 (0) 20 7562 3350
Nick Rome / Michael Kinirons
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
vendorRelated Shares:
Cabot Energy