23rd Sep 2005 06:00
Embargoed for release: 0700 on 23 September 2005 Northern Petroleum Plc ("Northern" or "the Company") Re. Agreement Northern announces that its wholly owned subsidiary, Northern PetroleumExploration Limited, has entered into an agreement to sell, subject togovernment consents, its 50% interest in its Spanish exploration concessions toa subsidiary of Ascent Resources Plc ("Ascent") in return for a 2.5%over-riding royalty derived from any future production. Ascent has stated itsintention to invest in an appraisal programme, with the drilling of two wellsas the first priority.This agreement does not include Northern's interest in the Ayoluengo producingoil field.Derek Musgrove, Managing Director, stated:"Our review of these licences has led us to a decision not to drill these threeprospects. Rather, we have chosen to benefit from any success resulting fromanother company's efforts, without exposure to further costs, by means of anover-riding royalty and to focus our resources, both human and financial, onother development and exploration projects of greater potential within ourportfolio including our projects in Holland.Northern's subsidiary, NP Netherlands B.V. ("NPN"), has committed to thedevelopment of two onshore Dutch discoveries with an option to commit to afurther three, prior to the end of the year, pending the approval of therelevant government authorities. NPN estimates the gross expected in-placevolumes of the two committed discoveries to be 102 billion cubic feet of gasand 6.3 million barrels of oil."For further information please contact:Chris Roberts/Ben SimonsHansard Communications020 7245 1100ENDNORTHERN PETROLEUM PLCRelated Shares:
Cabot Energy