Update on Canadian Operations

Northern Petroleum Plc

("Northern Petroleum" or "the Company")

Update on Canadian Operations

Northern Petroleum (AIM: NOP) provides the following production update on the three wells in north west Alberta, Canada. As announced on 3 April 2014, all the wells were successfully drilled and completed as planned and operations then moved to a production testing phase.

Highlights

§ Production results support the development of the Keg River play as part of the low risk production led growth strategy

§ 13-33 and 14-22 both currently producing at a combined test rate of 280 bbls/d

§ 16-19 initially produced as expected; a cemented liner now needs to be run to replace the inflatable packer and isolate the water aquifer below the oil column

§ Production being trucked and sold locally at a sales price of approximately Cdn$96 per barrel

§ Short and medium term development of the play underway with three new wells planned in the summer

Keith Bush, Chief Executive Officer, commented:

"These drilling and production results support our belief that the redevelopment of the Keg River play will become a material source of production, cashflow and value to the business. The data available allows engineering analysis that can mitigate downside risk, reinforces the primary recovery potential and supports the evaluation of the potential for significantly greater recovery through water flood. Development in the Virgo area is relatively low risk and within the Company's control; a clear fit with the Company's pursuit of a production led growth strategy."

13-33

The deviated well drilled into a previously produced reef ("13-33") targeted the edge of the reef to prove the presence of unswept oil that can be produced from different areas of the reefs. The well was put on production on 16 April 2014 and cleaned up well with a steadily declining water cut. The pump rate was recently increased and the well has now been producing at rates of approximately 230 barrels of oil per day ("bbls/d") for a number of days. In the interests of long term total recovery the pump rate will be reduced and the well will be held at a producing oil rate of approximately 150 bbls/d. The well produces with a water cut below 5% and will now be left on production at this rate to maximise ultimate recovery.

14-22

The re-entry well ("14-22") was put on production on 2 April 2014 and cleaned up throughout April, producing out the drilling and load fluids as expected. 14-22 has demonstrated good productivity with cumulative oil produced of 1,838 barrels over 36 days of production, an average of 51 bbls/d. The well is capable of delivering 100 bbls/d of oil, however the well will be restricted to 50 bbls/d over the near term to maximise hydrocarbon recovery until the down hole pressure gauges are recovered in the summer and the impact of higher production rates on the ultimate recovery is evaluated. Water cut during the test period has trended downwards with a current value of 40%. When the well was originally shut in during 1985, the water cut was 85% and is therefore showing the benefit of re-equilibration since then.

16-19

The new drill well into an undrilled reef ("16-19") was put on production on 14 April. The drilling and load fluids were produced as expected and although the water cut started to reduce, it then reverted back to a high level. This indicates a failure of the inflatable packer used to isolate the 22 metre gross oil zone from the water bearing zone lower down in the well. Prior to setting the inflatable packer, the well produced dry oil from the oil zone during the wireline MDT test.

An inflatable packer and open hole completion was tested at 16-19, whereas a cemented liner and perforation completion technique was tested at 13-33.These different completion techniques were tested to evaluate the best completion option for the development programme. Following these results, future new wells are likely to have cemented liner with perforations as the preferred completion technique, which will not have a material cost implication on the overall completion.

As part of the summer work programme, when the downhole pressure gauges in all three wells are recovered as planned, a cemented liner will be run in 16-19 and the oil zone will be perforated to ensure isolation of the water leg during production. The well will remain shut in until then.

Production and development

All production is being trucked and sold locally at a price of approximately Cdn$96 per barrel, with the Company paying water disposal fees. The wells are being produced with small rental test kits, requiring regular trucking to empty the onsite storage tanks. Throughout April, operations benefited from favourable weather conditions allowing almost daily trucking and an uptime of over 90% for all wells. As expected, the local ambient temperature is rising and the spring thaw period, known as break up and which occurs over the next six to eight weeks, is likely to hamper daily trucking due to soft road conditions and will result in intermittent shut in days during this period.

All wells will have pipeline tie-ins undertaken during the winter, which negates the requirement for trucking and the associated operational expenditure. Pipeline connection also removes any flaring of associated gas, which is restricted by the Alberta Energy Regulator ("AER") and can limit oil production rates where the gas to oil ratio is high.

The Company is now planning the immediate and long term development of the play. An initial review for the next drilling phase has produced nine well locations, which are currently being licensed, all of which are new wells drilled into previously produced reefs to target the production of unswept oil at the reef edge, as was successfully demonstrated by 13-33. The initial target of increasing primary recovery on the Company's acreage position by at least 5%, from the current 17% of the 101 million barrels of stock tank oil originally in place, as determined by the AER, is strongly supported by the results to date. A much larger recovery through secondary water flood will also now be analysed and considered as part of the future development of the reefs, which has the potential to further increase recovery to levels of between 35% to 40%.

Three new wells are planned to be drilled during the summer starting in August and the pipeline connections of the resulting six wells are scheduled to be undertaken during the winter period starting in December.

An updated presentation setting out the production results in further detail will be posted on the Company's website (www.northernpetroleum.com).

-Ends-

For further information please contact:

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

Keith Bush, Chief Executive Officer

Graham Heard, Exploration & Technical Director

Westhouse Securities (Nomad and Broker) Tel: +44 (0)20 7601 6100

Richard Baty, Corporate Finance

Henry Willcocks, Corporate Broking

Camarco Tel: +44 (0)20 3757 4980

Billy Clegg

Georgia Mann

In Accordance with 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 Petroleum, 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.

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 north west 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