Northern Petroleum Plc
LSE : NOP

September 30, 2009 02:00 ET

Interim Results

                                                                                                                       
                                                            
                                                                                                   30 September 2009
                                                            

                                                 Northern Petroleum Plc
                                       ("Northern", "the Group" or "the Company")

                             Condensed Interim Results for the Six Months Ended 30 June 2009


Financial highlights:

                                                                                   Six months ended         Six months ended
                                                                                       30 June 2009             30 June 2008
                                                                                           EUR '000                 EUR '000
                                                                                        (Unaudited)    (Unaudited, Restated)
----------------------------------------------------------------------------------------------------------------------------                                                                                                                            
Revenue                                                                                       2,801                    2,856
(Loss) / profit before tax                                                                    (531)                    1,680
(Loss) / profit for the period                                                                 (73)                    1,474
                                                                                                                            
Basic (loss) / earnings per share on (loss) / profit for the period                     (0.1) cents                2.1 cents
Diluted (loss) / earnings per share on (loss) / profit for the period                   (0.1) cents                1.9 cents

----------------------------------------------------------------------------------------------------------------------------
                                                                                                                      
                                                                                                              
Cash and cash equivalents                                                                    27,942                   31,401
Other working capital                                                                        12,275                    9,117
Net assets                                                                                   75,602                   56,400
Total distributable reserves                                                                 32,950                   23,337

----------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                            
Production (million boe)                                                                      0.061                    0.065
                                                                                                                            
Average revenue, in currency of receipt, per attributable boe:                                                              
                                                                                                                            
Gas                                                                                        EUR42.63                 EUR40.66
Oil                                                                                          $48.07                  $103.94

Net Commercial Oil & Gas Reserve Quantities                                                                                 
- Proven and Probable reserves (million boe)                                                 102.99                    76.48

----------------------------------------------------------------------------------------------------------------------------


Highlights:

*       Strong balance sheet - cash and working capital of EUR41.2 million;
*       Completion of ATI Oil Plc (ATI) acquisition;
*       35% increase in Proven & Probable reserves to 103 million barrels of oil equivalence;
*       Strong share price performance; and
*       Northern entered the FTSE AIM UK 50 Index;


Operations:

*       Hydraulic reservoir fracturing programme success. Wells flow tested at rates greatly in excess of  previous
        predictions;
*       Grolloo and Geesbrug fields are scheduled for production before year end;
*       Tiendeveen well, close to the Geesbrug gas field, currently drilling.  (67 to 98 bcf gas prospect, Northern
        22.5%);
*       Offshore Sicily 2D seismic surveys completed over seven licences, six in partnership with Shell Italia E&P
        S.p.A.; and
*       Preliminary award of five new Italian offshore licences. Licensed area now totals over 15,000km².
        
        
        
        
        
Outlook:

*       Grolloo, Geesbrug, Brakel and Wijk en Aalburg gas fields all scheduled for production by early 2010, with the
        Ottoland and Papekop oil fields to follow;
*       2013 production forecast of 6,000 barrels of oil equivalent per day net to Northern; and
*       Strong exploration and appraisal drilling programmes in The Netherlands, Italy, UK and Guyane.


Commenting on the results, Richard Latham, Chairman said:

"I  believe  that  I can justly ask you to join me in looking to our Company's future with optimism.  In  a  year  which
started  with  recession Northern benefited from a strong financial position to continue unchecked towards  placing  its
Netherlands fields on production. The fracturing programme has been a remarkable success. The ATI financing issues  have
been  eliminated and the great potential of the position in Italy is demonstratively emerging. I am confident  that  our
thrust  belt  venture with Shell Italia will continue further. We now report 2P reserves of 103 million barrels  of  oil
equivalence  whilst  continuing to maintain a very strong financial position. The achievement of significant  levels  of
production is imminent and the oil price seems to be settling at a satisfactory level as are the European gas prices.

I foresee us entering 2010 as a much stronger company, forecasting significant cash from production. In a world in which
political and economic uncertainties may be predicted, we are very well positioned for growth with security."

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 Petroleum  Plc,  Mr
Graham Heard CGeol FGS, who has over 35 years experience as a petroleum geologist.

                                                       ---ENDS---
                                                            
For further information please contact:

Northern Petroleum Plc                                      Tel: +44 (0) 20 7469 2900
Derek Musgrove, Managing Director
Chris Foss, Finance Director
Graham Heard, Exploration & Technical Director
Sophie Hull, Head of Corporate Communications

Jefferies International                                     Tel: +44 (0) 20 7029 8000
Chris Snoxall / Schuyler Evans

Astaire Securities                                          Tel: +44 (0) 20 7448 4400
Jerry Keen / Toby Gibbs

Bishopsgate Communications (Press)                          Tel: +44 (0) 20 7562 3350
Nick Rome / Michael Kinirons

Buchanan Communications (Analysts)                          Tel: +44 (0) 20 7466 5000
Tim Thompson / Ben Romney


Notes to Editors:

Further information on Northern is available at www.northpet.com.

CHAIRMAN'S STATEMENT

It  has been a very important and highly active period that I report upon. Activity has increased and successes achieved
as  we  advance  towards new gas production later this year. Oil Reserves have been increased by  26.6  million  barrels
through  the  acquisition of ATI Oil Plc ("ATI") bringing fuller control of our tremendous licensing position  in  Italy
that  represents so much upside potential for the Company. The processing and mapping of data from this year's  offshore
Sicily  seismic  surveys  has been very encouraging, including that over the licences in our joint  venture  with  Shell
Italia E & P Spa ("Shell Italia").

This  high level of activity, with a capital expenditure of almost EUR10 million in the first half of the year, has been
possible  as  the  result of prudence and patience in creating and maintaining a strong cash balance,  sufficient  until
substantive production incomes are achieved. I believe that the relatively early rebound of our share price has been  in
recognition of this and demonstrated by our entry into the AIM UK top 50 company list.

The  most  important  project has been the five field hydraulic reservoir fracturing programme in The  Netherlands.  The
results, though not all fully analysed, are markedly above our expectations. The current indication is that the  initial
production  from  just four fields will exceed that previously forecast from six fields and with considerable  potential
upside in reserve.

Pipeline  trenching and laying work is in progress to tie the Grolloo and Geesbrug gas fields into nearby gas processing
facilities with first gas production scheduled before year end at about 15 million scfd combined flow rate with  45%  of
revenues accruing to Northern. These rates are in the short term limited under the gas processing contracts. I hope that
these will be augmented by gas from the Tiendeveen exploration well currently drilling nearby.

Two  processing  plants for the Brakel and Wijk en Aalburg gas fields have been manufactured in Canada  at  considerably
lower  cost  than in the EU and will shortly be delivered. Gas production from these fields is scheduled for  the  early
part of next year.

This  is  just the beginning in The Netherlands. Our focus will move on to the development of the Ottoland  and  Papekop
oilfields  with  further  production  drilling in the gas fields and drilling of previous  discoveries  in  the  Utrecht
licence.

So  far  this year we have not concluded an asset sale to provide a significant contribution to profits. Even so  I  can
report to you that the Company has essentially achieved a breakeven position, a loss of only EUR73,000, one tenth of one
cent per share, whilst progressing towards substantive levels of production.

Italy  remains  an area of continuing growth for medium and long term potential. Five more offshore licenses  have  been
awarded  as building of our selected four offshore core areas continues. I note that we now manage the largest  licensed
area  in  Italy, about 15,000 km². Several further applications have been recently submitted. Discussions with potential
new partners continue as interest in oil and gas exploration in Italy increases.

This  year  we held our Annual General Meeting at the Forestside & Stansted Social club nearby our Markwells Wood  drill
site  in  West  Sussex which was visited later in the day as was the Horndean oil field production  facility.   Over  70
guests  attended  and  we were delighted at the opportunity to show shareholders, residents, local  representatives  and
planners the quality of our operations and our determination to be a good neighbour. I now expect our wells at Markwells
Wood and Havant to be drilled next year.

Offshore  Guyane,  I   hope  that  the current 3-D seismic survey being conducted  by Tullow  Oil  Plc  will  result  in
identifying drillable significant structures analogous to their recent successes offshore Ghana and even Sierra Leone.

I believe that I can justly ask you to join me in looking to our Company's future with optimism. In a year which started
with recession Northern benefited from a strong financial position to continue unchecked towards placing its Netherlands
fields  on  production.  The  fracturing programme has been a remarkable success. The ATI  financing  issues  have  been
eliminated and the great potential of the position in Italy is demonstratively emerging. I am confident that our  thrust
belt  venture  with  Shell  Italia  will continue further. We now report 2P reserves  of  103  million  barrels  of  oil
equivalence  whilst  continuing to maintain a very strong financial position. The achievement of significant  levels  of
production is imminent and the oil price seems to be settling at a satisfactory level as are the European gas prices.

I foresee us entering 2010 as a much stronger company, forecasting significant cash from production. In a world in which
political and economic uncertainties may be predicted, we are very well positioned for growth with security.


R H R Latham
Chairman


Consolidated Income Statement
For the six months ended 30 June 2009



                                                                     6 months          6 months         Year
                                                                        ended             ended        ended
                                                                      30 June           30 June           31
                                                                         2009             2008*     December
                                                                   (Unaudited)       (Unaudited,        2008
                                                                      EUR '000         restated)    (Audited)
                                                            Notes                      EUR '000     EUR '000
------------------------------------------------------------------------------------------------------------                                                                                                            
Revenue                                                                 2,801             2,856        6,954
                                                                                                            
------------------------------------------------------------------------------------------------------------
Production costs                                                        (858)             (835)      (1,752)
Depletion and amortisation - property, plant &                          (759)           (1,216)      (2,377)
equipment
------------------------------------------------------------------------------------------------------------
Cost of sales                                                         (1,617)           (2,051)      (4,129)

------------------------------------------------------------------------------------------------------------                                                                                                          
Gross profit                                                            1,184               805        2,825
                                                                                                            
Pre-licence costs                                                        (47)             (335)        (463)

------------------------------------------------------------------------------------------------------------                                                                                                            
Administrative expenses - other                                       (1,516)             (733)      (1,774)
Administrative expenses - share incentives                              (784)             (865)        (137)
------------------------------------------------------------------------------------------------------------
Administrative expenses - total                                       (2,300)           (1,598)      (1,911)
                                                                                                            
Other operating (expenses) / income                                       (1)                57           57
(Loss) / profit on disposal of assets                          2         (14)               (1)        8,943
Deemed profit on disposal of associate                                      -                 -            1

------------------------------------------------------------------------------------------------------------                                                                                                            
(Loss) / profit from operations                                       (1,178)           (1,072)        9,452
                                                                                                            
Finance charges                                                         (191)             (176)        (711)
Finance income                                                 3          910             3,008        2,959
Share of operating loss of joint ventures & associates                   (72)              (80)        (142)
------------------------------------------------------------------------------------------------------------
                                                                                                           
(Loss) / profit before tax                                              (531)             1,680       11,558
                                                                                                            
Tax credit / (expense)                                                    458             (206)      (1,644)
------------------------------------------------------------------------------------------------------------
                                                                                                            
(Loss) / profit for the period                                           (73)             1,474        9,914
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
                                                                                                            
Basic (loss) / earnings per share                              4        (0.1)         2.1 cents   14.0 cents
                                                                        cents
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
                                                                        
                                                                                                            
Diluted (loss) / earnings per share                            4        (0.1)         1.9 cents   13.4 cents
                                                                        cents
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------

* Details of changes in presentation to the consolidated income statement and other restatements are given in note 1.

All results are from continuing activities and are attributable to equity shareholders of the parent.




Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2009



                                                                             6 months              6 months             Year
                                                                                ended                 ended            ended
                                                                              30 June               30 June      31 December
                                                                                 2009                  2008             2008
                                                                          (Unaudited)           (Unaudited,        (Audited)
                                                                                                  restated)
                                                                             EUR '000              EUR '000         EUR '000
----------------------------------------------------------------------------------------------------------------------------
                                                                                                                       


(Loss) / profit for the period                                                   (73)                 1,474            9,914
                                                                                                                            
Exchange differences on translation of foreign operations                         411                 (571)          (2,187)
                                                                                                                       
----------------------------------------------------------------------------------------------------------------------------  
                                                                                                                            
Other comprehensive income for the period, net of tax                             411                 (571)          (2,187)
                                                                                                                       
----------------------------------------------------------------------------------------------------------------------------
                                                                                                                            
Total comprehensive income for the period                                         338                   903            7,727

----------------------------------------------------------------------------------------------------------------------------
                                                                                                                            




Consolidated Balance Sheet
at 30 June 2009

                                                                    At 30 June         At 30 June           At 31
                                                                                                         December
                                                                          2009              2008*            2008
                                                                   (Unaudited)        (Unaudited,       (Audited)
                                                                                        restated)
                                                      Notes           EUR '000           EUR '000        EUR '000
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Assets
Non-current assets                                                                                               
Intangible assets                                                       20,475             12,569          12,369
Property, plant and equipment                             5             31,390             12,884          12,498
Investments in joint ventures                                               99                  -              70
Investments in associates                                                   15                 74              13
Loans and other receivables                                                103              3,520           5,613
-----------------------------------------------------------------------------------------------------------------
                                                                        52,082             29,047          30,563

Current assets                                                                                                   
Inventories                                                                 60                 48              55
Trade and other receivables                                             20,183             15,680          21,249
Cash and cash equivalents                                               27,942             31,401          34,927
Non-current assets classified as held for                                    -                 32               -
sale
-----------------------------------------------------------------------------------------------------------------
                                                                        48,185             47,161          56,231
Total assets                                                           100,267             76,208          86,794
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Liabilities
Current liabilities                                                                                              
Trade and other payables                                                 5,272              3,900           5,949
Corporation tax liability                                                2,696              2,743           3,868
-----------------------------------------------------------------------------------------------------------------
                                                                         7,968              6,643           9,817

Non-current liabilities                                                                                          
Trade and other payables                                                    36                 84              74
Provisions                                                               6,813              6,528           6,697
Deferred tax liabilities                                                 9,848              6,553           6,661
-----------------------------------------------------------------------------------------------------------------
                                                                        16,697             13,165          13,432
-----------------------------------------------------------------------------------------------------------------
Total liabilities                                                       24,665             19,808          23,249
-----------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Net assets                                                              75,602             56,400          63,545
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Capital and reserves                                                                                             
Share capital                                                            4,974              4,477           4,488
Share premium                                                           23,964             23,894          23,964
Merger reserve                                                          10,289                  -               -
Special reserves - distributable                                         4,544              4,544           4,544
Special reserves - undistributable                                         154                154             154
Share incentive plan reserve                                             3,328              3,390           2,384
Foreign currency translation reserve                                      (57)              1,148           (468)
Retained earnings                                                       28,406             18,793          28,479
-----------------------------------------------------------------------------------------------------------------
Total equity                                                            75,602             56,400          63,545
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

* Details of changes in presentation to the consolidated balance sheet and other restatements are given in note
1.

All amounts are attributable to equity shareholders of the parent.




Consolidated Cash Flow Statement
for the six months ended 30 June 2009

                                                               6 months ended    6 months ended        Year ended
                                                                      30 June           30 June       31 December
                                                                         2009             2008*              2008
                                                                  (Unaudited)       (Unaudited,         (Audited)
                                                                                      restated)
                                                                     EUR '000          EUR '000          EUR '000
-----------------------------------------------------------------------------------------------------------------
Cash flows from operating activities                                                                             
(Loss) / profit before tax                                              (531)             1,680            11,558
Depletion and amortisation                                                759             1,216             2,377
Depreciation - non oil and gas property, plant & equipment                 93                97               204
Loss / (profit) on disposal of property, plant and                          -                 1           (8,937)
equipment
Foreign exchange gain                                                   (151)           (1,970)             (898)
Finance income                                                          (759)           (1,038)           (2,061)
Finance charges                                                           191               176               711
Share based payments                                                      642               202               442
Expenses settled by issue of shares                                         -                 -                64
Share of operating loss in associate                                       72                80               142
Deemed profit on disposal of associate                                      -                 -               (1)
-----------------------------------------------------------------------------------------------------------------
Net cash inflow before movements in working capital                      316               444              3,601
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
 (Increase) / decrease in inventories                                     (2)                52                45
Decrease / (increase) in trade and other receivables                    3,990             2,669           (5,635)
(Decrease) / increase in trade and other payables                     (1,026)             (317)             2,064
-----------------------------------------------------------------------------------------------------------------
Net cash inflow / (outflow) from changes in working capital             2,962             2,404           (3,526)
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Taxes paid                                                              (964)                 -                 -
Net cash inflow from operating activities                               2,314             2,848                75
                                                                                                                 
Cash flows from investing activities                                                                             
Interest received                                                         139               582             1,485
Interest paid                                                            (72)                 -              (10)
Purchase of property, plant and equipment                             (4,388)             (886)           (1,915)
Sale of property, plant and equipment                                       -                 -             8,989
Expenditure on exploration and evaluation assets                      (5,440)           (1,145)           (1,771)
Investment in joint venture company                                      (33)                 -              (87)
Loan to joint ventures and associated companies                             -                 -             (144)
Cash balance of company acquired (see note 6)                              18                 -                 -
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
Net cash (outflow) / inflow from investing activities                 (9,776)           (1,449)             6,547
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Cash flows from financing activities                                                                             
Proceeds from the exercise of warrants                                      -                18                35
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
Net cash inflow from financing activities                                   -                18                35
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Net (decrease) / increase in cash and cash equivalents                (7,462)             1,417             6,657
Cash and cash equivalents at start of period                           34,927            28,929            28,929
Effect of exchange rate movements                                         477             1,055             (659)
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period                             27,942            31,401            34,927
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

* Details of the restatement of the consolidated cash flow statement are given in note 1.
Other than the acquisition of ATI Oil Plc (see note 6), there have been no significant non-cash transactions
during the period.




Consolidated Statement of Changes in Equity
for the six months ended 30 June 2009


                                                                    
                                                                         Share     Foreign 
                                                                     incentive    currency      
                            Share  Share premium     Merger   Special     plan translation Retained                    
                          capital        Account    reserve  reserves  reserve     reserve earnings      Total*
                                                                                                       
                              EUR           EUR         EUR       EUR      EUR         EUR      EUR        EUR 
                             '000          '000        '000      '000     '000        '000     '000       '000
-----------------------------------------------------------------------------------------------------------------
At 1 January 2008                                                                                                
(audited, restated)         4,468         23,885          -     4,698     3,200      1,719     17,307      55,277
Total comprehensive                                                                                              
income for the period           -              -          -         -         -      (571)      1,474         903
Issue of shares during                                                                                           
the period                      9              9          -         -         -          -          -          18
Equity share warrants                                                                                            
issued                          -              -          -         -      (12)          -         12           -
Share based payments            -              -          -         -       202          -          -         202
-----------------------------------------------------------------------------------------------------------------
At 30 June 2008             4,477         23,894                4,698     3,390      1,148     18,793      56,400
(unaudited, restated)                                     -
Total comprehensive                                                                                              
income for the period           -              -          -         -         -    (1,616)      8,440       6,824
Issue of shares during                                                                                           
the period                     11             70          -         -         -          -          -          81
Equity share warrants                                                                                            
issued                          -              -          -         -   (1,246)          -      1,246           -
Share based payments            -              -          -         -       240          -          -         240
-----------------------------------------------------------------------------------------------------------------
At 31 December 2008                                                                                              
(audited)                   4,488         23,964          -     4,698     2,384      (468)     28,479      63,545
Total comprehensive                                                                                              
income for the period           -              -          -         -         -        411       (73)         338
Share based payments            -              -          -         -       642          -          -         642
ATI acquisition (note 6)      486              -     10,289         -       302          -          -      11,077
-----------------------------------------------------------------------------------------------------------------
At 30 June 2009             4,974         23,964     10,289     4,698     3,328       (57)     28,406      75,602
(unaudited)
-----------------------------------------------------------------------------------------------------------------

*  Details  of  changes in presentation to the consolidated statement of changes in equity and other restatements
are given in note 1.

The merger reserve includes the premium on shares issued as part of the consideration for the ATI acquisition
(note 6).

All amounts are attributable to equity shareholders of the parent.




Notes to the Interim Results
for the six months ended 30 June 2009


1. BASIS OF PREPARATION
This  unaudited condensed consolidated interim financial information has been prepared using the recognition  and
measurement  principles  of International Accounting Standards, International Financial Reporting  Standards  and
Interpretations adopted for use in the European Union (collectively EU IFRSs). The principal accounting  policies
used  in  preparing the interim results are unchanged from those disclosed in the Group's Annual Report  for  the
year  ended  31 December 2008. These statutory accounts are available on the Company's website (www.northpet.com)
or by application to the Company's registered office.

The  financial  information  for the six months ended 30 June 2009 and 30 June 2008 is  unaudited  and  does  not
constitute  statutory  financial  statements of Northern Petroleum Plc  and  its  subsidiaries.  The  comparative
financial  information  for the full year ended 31 December 2008 has, however, been derived  from  the  statutory
financial statements for that period.  A copy of those statutory financial statements has been delivered  to  the
Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any
matters  to  which  the auditors drew attention by way of emphasis without qualifying their report  and  did  not
contain a statement under section 237(2)-(3) of the Companies Act 1985.

The  following  pronouncements from the IASB became effective from 1 January 2009 and have been  adopted  by  the
Group:

IFRS  8 'Operating Segments' was issued in October 2006 and defines operating segments as components of an entity
about  which  separate  financial  information is available and is evaluated regularly  by  the  chief  operating
decision maker in deciding how to allocate resources and in assessing performance. The new standard sets out  the
required  disclosures for operating segments and is effective for annual periods beginning on or after 1  January
2009.  No  segmental information is presented in these condensed interim results. Northern will present segmental
information  in accordance with the new standard in the 2009 Annual Report and expects no change to its  segments
that  are separately reported. There will be no effect on the Group's reported income or net assets. IFRS  8  has
been adopted by the EU.

In  September  2007,  the  IASB issued Amendments to IAS 1 'Presentation of Financial  Statements'  -  A  Revised
Presentation,  which requires separate presentation of owner and non-owner changes in equity by  introducing  the
statement of comprehensive income. The revised standard is effective for annual periods beginning on or  after  1
January 2009 and Northern has adopted it from this date. A Statement of Comprehensive Income is presented as part
of  these condensed interim results. There will be no effect on the Group's reported income or net assets. IAS  1
Revised has been adopted by the EU.


Changes to Accounting policies

Following a review of certain accounting policies by the Board the following changes to accounting policies  were
made in the 2008 full year accounts:

A.   The  Company  changed its functional currency to Euro with effect from 1 July 2008.  As  such  the  2008
     comparatives are presented in Euro. These changes reflect the primary economic environment in which the Northern
     Group now operates.

     More extensive information on the reason for the change in functional currency from Sterling to Euro of  the
     Group with effect from 1 July 2008 is detailed in note 2 of the Annual Report 2008.

B.   An amendment to the Group's accounting policy on capitalisation of directly attributable salaries,  with
     salaries  capitalised at the subsidiary level no longer to be written back to the income statement to the  extent
     that  they have not been recovered from co-venturers. This change brought Northern's policy in line with most  of
     its industry peers and complies with International Financial Reporting Standards.

     The net effect of this change is to increase consolidated net assets and increase consolidated retained earnings
     by  EUR2,551,000  as at 1 January 2008. Details of the impact of the change in policy on  the  prior  period
     interim results are detailed in the table below:

    Increase / (decrease)                                                       30 June       31 December
                                                                                   2008              2007
                                                                               EUR '000          EUR '000
---------------------------------------------------------------------------------------------------------
    Income statement :                                                                                   
        -       Depreciation, depletion and                                                              
            amortisation                                                              -                65
             -property plant & equipment
        -       Administrative expenses - other                                   (623)           (1,650)
        -       Profit on disposal of tangible assets                                 -               632
---------------------------------------------------------------------------------------------------------
    Balance sheet:                                                                                       
        -       Property, plant & equipment                                       1,141               872
        -       Intangible assets                                                 2,033             1,679
        -       Currency translation reserve                                       (71)              (71)
        -       Retained earnings                                                 3,245             2,622
---------------------------------------------------------------------------------------------------------
    Earnings per share                                                        0.9 cents         1.3 cents
---------------------------------------------------------------------------------------------------------
                                                                                                         
    No taxation adjustment arises on this change in accounting policy.
    
C.  In accordance with IFRS 2 'Share-based payments' the charge to the income statement is to be spread over
    the period between award and vesting.

    This  change  has  no  effect on reported consolidated net assets, but results in an increase  in  the  share
    incentive plan  reserve and a decrease of EUR2,198,000 in consolidated retained earnings as at 1 January 2008.  
    Details of the impact of the change in policy on the prior period interim results are detailed in the table below:
    
     Increase / (decrease)                                                          30 June       31 December
                                                                                       2008              2007
                                                                                   EUR '000          EUR '000
-------------------------------------------------------------------------------------------------------------
     Income statement :                                                                      
         -       Share incentive charge                                               (214)              (46)
-------------------------------------------------------------------------------------------------------------
     Balance sheet:                                                                                          
         -       Share incentive plan reserve                                         1,984             2,198
         -       Retained earnings                                                  (1,984)           (2,198)
-------------------------------------------------------------------------------------------------------------
     Earnings per share                                                           0.3 cents         0.1 cents
-------------------------------------------------------------------------------------------------------------
                                                                                                             
    No taxation adjustment arises on this change in accounting policy.

Restatement of Comparatives
As  described in the Annual Report 2008, the opening balance sheet position of 1 January 2008 has been  restated.
Details of the restatements are to be found in note 3 on page 47 of the document.

Certain amounts within the Consolidated Income Statement and Consolidated Cash Flow Statement for the six  months
ended  30  June  2008 have been reclassified where necessary to ensure that their classifications are  consistent
with those used in the Group's Annual Report for the year ended 31 December 2008.


2.  LOSS ON DISPOSAL OF TANGIBLE ASSETS

                                                                6 months ended   6 months ended        Year ended
                                                                       30 June          30 June       31 December
                                                                          2009             2008              2008
                                                                   (Unaudited)      (Unaudited,         (Audited)
                                                                                      restated)
                                                                      EUR '000         EUR '000          EUR '000
-----------------------------------------------------------------------------------------------------------------
Disposal of subsidiaries                                                     -                -             8,953
Disposal of property, plant and equipment                                 (14)              (1)              (10)
-----------------------------------------------------------------------------------------------------------------
Total (loss) / profit on disposal of tangible assets                      (14)              (1)             8,943
-----------------------------------------------------------------------------------------------------------------
It  was  announced on 14 July 2008 that NP Oil & Gas Holdings Limited ("NPOG") had signed a sale  of  its  entire
interests  in  the Waalwijk underground gas storage projects to Star Energy Group Plc ("Star"), a  subsidiary  of
Petronas International Corporation Limited. The sale involved NPOG selling its entire shareholding in two of  its
subsidiaries, Gas Storage Limited and Overseas Gas Storage Limited, to Star.


3. FINANCE INCOME
                                                                6 months ended   6 months ended        Year ended
                                                                       30 June          30 June       31 December
                                                                          2009             2008              2008
                                                                   (Unaudited)      (Unaudited,         (Audited)
                                                                                      restated)
                                                                      EUR '000         EUR '000          EUR '000
-----------------------------------------------------------------------------------------------------------------
Interest receivable                                                        139              582             1,485
Foreign exchange gains                                                     151            1,970               898
Unwinding of fair value discount on receivables due in                                                           
more than one year                                                         620              456               576
-----------------------------------------------------------------------------------------------------------------
                                                                           910            3,008             2,959
-----------------------------------------------------------------------------------------------------------------

4. EARNINGS PER SHARE
Basic  earnings  per  share  amounts are calculated by dividing profit or loss for  the  period  attributable  to
ordinary  equity holders of the parent by the weighted average number of ordinary shares outstanding  during  the
year.

Diluted  earnings  per  share amounts are calculated by dividing profit for the period attributable  to  ordinary
equity holders of the parent by the weighted average number of ordinary shares outstanding during the year,  plus
the  weighted  average  number  of shares that would be issued on the conversion of dilutive  potential  ordinary
shares  into  ordinary shares. The calculation of the dilutive potential ordinary shares related to employee  and
director  share  option plans includes only those warrants with exercise prices below the average  share  trading
price for each period.


                                                                 6 months ended 6 months ended         Year ended
                                                                        30 June        30 June        31 December
                                                                           2009           2008               2008
                                                                       EUR '000       EUR '000           EUR '000
                                                                    (Unaudited)    (Unaudited,          (Audited)
                                                                                     restated)
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Net (loss)/ profit attributable to equity holders                                                                
used in basic calculation                                                  (73)          1,474              9,914
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Net (loss)/ profit attributable to equity holders                                                                
used in dilutive calculation                                               (73)          1,474              9,914
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Basic weighted average number of shares                                  71,395         70,843             70,879
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Dilutive potential of ordinary shares:                                                                           
Warrants exercisable under Company                                          n/a          5,415              2,963
schemes
Diluted weighted average number of shares                                71,395         76,258             73,842
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

The  calculation of the diluted EPS assumes all criteria giving rise to the dilution of the EPS are achieved  and
all  outstanding share options that in are in money at period end are exercised. The warrants were  anti-dilutive
for the six months ended 30 June 2009 and have been excluded from the diluted loss per share for the period.


5. PROPERTY, PLANT AND EQUIPMENT

                                                                        30 June         30 June       31 December
                                                                           2009            2008              2008
                                                                    (Unaudited)     (Unaudited,         (Audited)
                                                                                      restated)
                                                                       EUR '000        EUR '000          EUR '000
-----------------------------------------------------------------------------------------------------------------
Oil and gas assets                                                       30,961          12,311            12,013
Computer and office equipment                                               429             573               485
-----------------------------------------------------------------------------------------------------------------
                                                                         31,390          12,884            12,498
-----------------------------------------------------------------------------------------------------------------


6. ATI OIL PLC ACQUISITION

On 24 June 2009 the Company acquired control of all of the ordinary share capital of ATI Oil Plc ("ATI") that the
Group  did  not already own. A total of 7,698,267 new Northern shares were issued fully paid at 120p  per  share,
being  the closing market price on 23 June 2009, to ATI shareholders and warrantholders, with trading in the  new
Northern shares commencing on 25 June 2009.

Due  to  the  inherently uncertain nature of the oil and gas industry, and exploration and evaluation  assets  in
particular,  the assumptions underlying the assigned values below are significantly judgemental  in  nature.  The
acquisition  consideration  below is considered equal to the aggregate of the  fair  values  of  the  assets  and
liabilities  acquired, with fair value adjustments recorded as deemed appropriate. Due to the  proximity  of  the
acquisition  to  the  six month period ended 30 June 2009 the fair values attributed to the acquired  assets  and
liabilities are provisional and may be revised. Deferred tax has been recognised, where applicable, in respect of
any fair value adjustments made.

Effect of the acquisition

Consideration
                                                                                                           24 June
                                                                                                              2009
                                                                                                       (Unaudited)
                                                                                                          EUR '000
------------------------------------------------------------------------------------------------------------------
Ordinary shares                                                                                             10,775
Replacement share based payment awards -                                                                          
value of past service                                                                                          302
------------------------------------------------------------------------------------------------------------------
                                                                                                            11,077
Acquisition costs                                                                                              960
------------------------------------------------------------------------------------------------------------------
                                                                                                            12,037
------------------------------------------------------------------------------------------------------------------

Identifiable assets acquired and liabilities assumed (at fair value)
                                                                                                          24 June
                                                                                                             2009
                                                                                                     Total assets
                                                                                                       acquired &
                                                                                                      liabilities
                                                                                                          assumed
                                                                                                      (Unaudited)
                                                                                                         EUR '000
------------------------------------------------------------------------------------------------------------------
Intangible exploration and evaluation assets                                                                2,335
Property, plant and equipment - oil & gas assets                                                           16,213
Trade and other receivables                                                                                   261
Cash and cash equivalents                                                                                      18
Trade and other payables                                                                                  (1,008)
Loans (ATI - Northern loan)                                                                               (2,333)
------------------------------------------------------------------------------------------------------------------
                                                                                                           15,486
Deferred tax liability                                                                                    (3,449)
------------------------------------------------------------------------------------------------------------------
                                                                                                           12,037
------------------------------------------------------------------------------------------------------------------

No goodwill has been recognised as a result of the acquisition.

The  Group  incurred  acquisition related costs of EUR960,000 relating to professional advisors'  fees,  directly
attributable internal costs and fees directly related to the scheme of arrangement under which ATI was  acquired.
These fees have been included in the cost of the acquisition.

The  revenue  and expenses incurred from this operation since the date of acquisition (24 June 2009) were  EURNil
and EURNil respectively. Cash inflow from the operation was EURNil.


7. POST BALANCE SHEET EVENTS

Cancellation of share premium
At  the  2008 Annual General Meeting of the Company, the ordinary shareholders, following the passing of  Special
Resolutions, approved the cancellation of the amount standing to the credit of the share premium account as at 31
December 2007. The High Court of Justice, Chancery Division confirmed the cancellation of the amount standing  to
the  credit  of the share premium account of the Company as at 31 December 2007, being £18.923 million (EUR23.885
million), and the Order of Court was delivered to Companies House on 30 June 2009, an announcement to that effect
was  made  on  the  same  day and was registered by Companies House on 8 July 2009 (the  "Effective  Date").  The
creditors of the Company as at the Effective Date will be protected by the transfer of the applicable balance  to
the  Company's  undistributable  special  reserve. This reserve will be  reduced,  and  the  applicable  balances
transferred to the Company's distributable special reserve, upon settlement of those creditors.


8. APPROVAL BY DIRECTORS
The interim report for the six months to 30 June 2009 was approved by the Directors on 29 September 2009.


9. AVAILABILITY OF INTERIM REPORT
The  interim  report will be made available in electronic format on the Company's website, www.northpet.com,  and
will  be  posted  to registered shareholders. Further copies will be available on request by application  to  the
Company Secretary at the Company's registered office being Martin House, 5 Martin Lane, London, EC4R 0DP.

Contact Information

  • Northern Petroleum Plc