Northern Petroleum Plc

June 04, 2009 07:00 ET

Netherlands Update

                                                                                       4 June 2009
                                      Northern Petroleum Plc
                                   ("Northern" or the "Company")

                                        NETHERLANDS UPDATE

Northern  Petroleum Plc announces that the Nieuwendijk well drilled by its wholly owned subsidiary
Northern  Petroleum  Nederland B.V. ("Northern") has reached a total depth of 2677  metres  having
penetrated the primary Bunter sandstone reservoirs. Encouragingly significant oil shows to surface
and  substantial  drilling fluid losses occurred during the drilling of this section.  These  have
been  evaluated  by electric logs and pressure tests, the results indicating the probability  that
the levels of oil saturations are not sufficient to warrant significant costs of testing.

These  results  along  with other information obtained from the well will be integrated  into  our
interpretation of the area around the Ottoland and Brakel fields enabling a new evaluation  to  be
made of the nearby and adjacent structures. The velocity information is rapidly being incorporated
into these depth maps.

Discussions are ongoing with a third party as to a possible geothermal energy application for  the
site and the well. With a bottom hole temperature of over 90ºC this is an interesting fall back of
commercial potential for depleted and unsuccessful wells drilled in this densely populated region.

Northern's  activities in The Netherlands will now concentrate and intensify on the programme  for
the  development of its six onshore fields, Brakel, Geesbrug, Grolloo, Ottoland, Papekop and  Wijk
en  Alburg, together estimated to contain 45.5 million barrels of oil equivalence ("boe")  net  to
Northern.  This  drilling  rig,  following a few days for  modifications  is  being  mobilised  to
operations on the Geesbrug gas field to prepare for hydraulic fracturing ("Fraccing") of  the  gas
bearing  Permian (Rotliegend) and Carboniferous (Dalen and Hardenburg) reservoirs. Thereafter  the
rig  will move to the Tiendeveen gas prospect adjacent to the Geesbrug gas field, targeting  67bcf
gas  in  place. The Fraccing operations at the Grolloo gas field will commence shortly and do  not
require this rig.

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

Derek Musgrove Managing Director stated - "The Nieuwendijk well result should be viewed in context
of  a  €  2-3  million net cost to Northern and not distract from the main activity of  developing
production  from the Brakel, Geesbrug, Grolloo, Ottoland, Papekop and Wijk en Alburg  fields  45.5
million boe of reserves scheduled start coming on-stream later this year.

"Drilling the well did confirm our interpretation that the structure should contain oil, being  in
close  proximity to the Ottoland oil field. However, the result of the electric log interpretation
and  pressure  tests  indicated that the oil accumulation has been breached and  insufficient  oil
remains  to  be  exploited.  A disappointment, but in the overall Netherlands  drilling  programme
Northern  has  an  additional  undeveloped gas discovery in the  Andel  III  Licence  and  further
undeveloped  gas  discoveries and significant oil and gas exploration prospects  in  the  adjacent
Utrecht licence. These discoveries form Northern's continuing programme in the region next year."

"Our  interest in geothermal energy will increase with activity. It has a potential to  provide  a
significant salvage value to unsuccessful drilling efforts in populated areas where the  reservoir
temperatures are around 90º - 100ºC.

"I  note  a good operational performance was achieved using a new rig drilling its first well.  No
injuries  or lost time accidents occurred and it was a remarkably successful effort for our  first
use of drilling with casing technology. A European record was achieved, which we plan to exceed at
Tiendeveen this summer."

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

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

Blue Oar                                          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

Contact Information

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