15th Sep 2008 07:00
Embargoed for release: 0700 on 15 September 2008
Northern Petroleum Plc ("Northern", "the Group" or "the Company") Onshore Netherlands - 3 Well Rig Contract
Northern Petroleum Plc (AIM: NOP), announces that a three well rig contract has been signed to enable its wholly owned subsidiary Northern Petroleum Nederland B.V. ("NPN") to proceed with the drilling of two exploration wells and one oil field development well in The Netherlands at any time over the next 12 months.
At this stage the three well programme will be to drill two exploration wells, the Nieuwendijk 56 to 83 million barrel oil prospect and the 67 to 98 bcf Tiendeveen gas prospect plus drill an oilfield production development well in the Papekop oil field containing probable recoverable reserves of 39.4 bcf of gas and 12.2 million barrels of oil. However two other prospects are currently being developed to drillable status should there be delays in the granting of consents to planning applications that have already been submitted.
Northern is particularly pleased that this is a newly built rig and brings additional drilling capability into the Netherlands at a time when NPN is increasing its activity levels.
Nieuwendijk is a prospect mapped in the Andel III licence with a mean level of 56 million barrels of oil in place, and at this undrilled stage with some potential for gas, that is approximately 9 kilometres from the recently drilled Ottoland oil field. Tiendeveen is a gas prospect in the Drenthe III licence mapped with a mean level of 67 bcf of gas in place in the north east of The Netherlands on the same licence as and close to the Geesbrug gas field development. The Papekop well, on a licence of the same name, is part of a planned six field development programme that NPN is undertaking onshore The Netherlands to bring into production 23.8 million barrels of oil and 404 bcf of gas. Following the exercise by EBN of its rights to participate, NPN's interests in the development projects will be 45% and in the exploration projects will be 22.5%.
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 30 years experience as a petroleum geologist.
---ENDS---
Northern Petroleum Plc Tel: +44 (0) 20 7469 2900
Derek Musgrove, Managing Director
Chris Foss, Finance Director
Graham Heard, Exploration & Technical Director
Investec Tel: +44 (0) 20 7597 5000
Michael Ansell / Patrick Robb
Blue Oar Tel: +44 (0) 20 7448 4400
Jerry Keen
Bishopsgate Communications (Press) Tel: +44 (0) 20 7562 3350
Nick Rome / Maxine Barnes
Buchanan Communications (Analysts) Tel: +44 (0) 20 7466 5000
Tim Thompson / Ben Willey / Ben Romney
Notes to Editors:
Northern has recoverable Proven and Probable reserves of 76.5 million barrels of oil equivalence.
It is the Netherland's second largest onshore oil company in terms of oil and gas reserves, 45.5 million boe recoverable. It is currently producing gas at Waalwijk and the offshore P12 fields. The planned development of six onshore oil and gas fields is being progressed through the Netherlands authorisation and planning processes. Partners in these projects include Dyas B.V. and EBN. NPN is progressing an enhanced condensate recovery project at Waalwijk, where it is felt that ultimate recovery of petroleum liquids can be economically increased.
The Company holds and manages the largest licensed exploration area in Italy, over 13,000 km‚², predominantly offshore but includes seven licences in the Po Valley oil and gas province in the north of the country where the drilling of the Savio 220 bcf gas prospect is being progressed. Through its holdings in licences in the southern Adriatic covering the Rovesti and Giove oil discoveries it has net Probable oil reserves independently assessed at 26.6 million barrels recoverable
The Company is also a significant holder of licences in the south of England where it has a 10% interest in the production from the Horndean oil field and a 5% interest in the proposed Avington oil field development. These fields are in the Weald Basin where Northern, with a 50% interest, is advancing a four well drilling programme.
Northern has an excellent record of trading assets to enhance shareholder value. In 2007 two separate transactions with Dyas BV yielded a reported profit of ‚£19.7 million and in July 2008 the Company reached agreement to sell its interests in an underground gas storage project application for ‚£7 million with further contingent payments totalling ‚£3 million.
Northern has a strong balance sheet and net cash and receivables position and is currently debt free. Drawdowns under a project finance facility approved by the credit committee of Standard Bank Plc to finance 65% of NPN's oil and gas field developments in The Netherlands are expected to commence in early 2009.
Further information on Northern is available at www.northpet.com.
vendorRelated Shares:
Cabot Energy