Northern Petroleum Plc
LSE : NOP

July 22, 2009 06:30 ET

AGM Statement

                                                                                                        22 July 2009

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

                                                    AGM Statement

At the Annual General Meeting ("AGM") today the Chairman, Richard Latham made the following statement.

"This  is  an unusual location for an AGM, but it is our pleasure to be here with you in the Forestside &  Stanstead
Social  Club  and  take  the opportunity to show our shareholders the way in which some of  our  UK  operations  are
conducted.  Later  today  we  will visit the Markwells Wood drilling site and one  of  the  older  Weald  basin  oil
production sites at Horndean.  You will see at firsthand how we take care to fit our operations into this  beautiful
part of England and interact with our neighbours in the local community.

2008  saw progress with Italian trades and farm outs, most notably to Shell Italia, and an extremely profitable exit
from  our  "non  core"  gas storage interests at Waalwijk in The Netherlands. Thus we entered 2009  with  a  further
strengthened  balance  sheet.  Net cash and working capital were a combined Euro 52 million.  This  positions  us  to
complete  our six field developments onshore The Netherlands and have financial comfort as we enter a new period  of
growth through further development of existing discoveries and exploration drilling.

The  takeover  of ATI Oil Plc increased our Proven and Probable reserves by a third to 103mmboe. We  now  have  full
management  control and flexibility to speed up the development of the very considerable potential  of  our  Italian
projects.

In  the Netherlands we have seen four very successful hydraulic fracturing operations increasing the production rate
potential  of  our gas fields which are expected to start coming on-stream later this year. The programme  has  been
successful beyond both our and our partners' expectations.

Given  the  progress  this  year I, like you, must note the share price has not seen  the  response  we  would  have
expected.  Even whilst understanding the effects of the economic turmoil we have all experienced, I am  disappointed
though  taking small comfort in that our share price has outperformed both the AIM Index and AIM Oil and  Gas  Index
21%*  and 35%* respectively. Being closer to first production in the Netherlands which is expected to commence in  a
matter  of  months, we know this will transform Northern and should finally reward us for all our efforts  and  your
patience.  It  will  be the first important milestone in our stated strategy, which may I remind  you  has  remained
constant over the years.

Our  assets are in geopolitically safe areas. Northern plans to build on its already strong and impressive  list  of
partners  in the Netherlands and Italy and reinvest our near term profits into other areas of significant  potential
within the existing portfolio of more than 50 licences.

The  Shell  Italia  farmin to offshore Sicily has helped to increase interest in our farmout  activities.   Offshore
Italy  contains  several  core  areas that we feel offer the greatest medium and long term  potential  for  material
growth. As you've seen these Italian projects were extensively reported on in the Annual Report & Accounts.

In the Netherlands our technical work has confirmed an additional undeveloped gas discovery in the Andel III licence
and  three  further undeveloped oil and gas discoveries in the adjacent Utrecht licence. We have also  entered  into
agreements that are expected to lead to two further gas discoveries being incorporated into our reserves. I  believe
that  two  technical successes should be recognised.  At Nieuwendjik the Casing While Drilling operation achieved  a
European and eastern hemisphere record of 780metres (2,567 feet) drilling. Next month we may exceed this record when
drilling  the Tiendeveen gas prospect close to the Geesbrug field. We also supported a new Netherlands drilling  rig
design which has proven its worth at Niewendijk and is currently involved in operations at Geesburg.

For  the United Kingdom activities we look forward to a multi well drilling programme.  Planning permission has been
granted  to drill at the Markwells Wood and Havant sites.  Both were chosen for their minimal environmental  impact.
Northern  remains  deeply  conscious of its commitments to being a good neighbour to  the  local  community  and  is
committed  to health and safety and rational preservation and enhancement of the environment. Two further wells  are
being planned nearby in Hampshire and West Sussex, both to appraise oil discoveries.

Undoubtedly  we are in a better position than we were a year ago.  When the results of the hydraulic  fracturing  of
our  fifth  Dutch  well,  Geesburg,  are known there may result in a significant upgrading  of  our  production  and
profitability  forecasts  and,  I might reasonably suggest, our share price.  I again  mention  that  the  hydraulic
fracturing  programme  has exceeded all our expectations, our reserves have increased by a third,  and  our  balance
sheet  is  stronger.    Production  and revenues from our development projects in The  Netherlands  are  closer  and
increase confidence that we will realise the potential we have ahead".

        * Indices v NOP 20th July 2008 - 20th July 2009
        



For further information please contact:

Northern Petroleum Plc                                                Tel: +44 (0) 20 7469 2900
Richard Latham, Chairman
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

Northern  Petroleum Plc ("NOP") is an AIM quoted oil and gas production, development, exploration and asset  trading
company  focused  on areas of low political risk in Europe. Quoted on the London Stock Exchange the Company  obtains
significant concentrated licence positions and adds value at reasonable risk utilising new ideas together  with  new
drilling,  seismic, completion and computer technologies where it is believed that economic oil and  gas  production
can  be  established.  Efforts are concentrated in three countries (Netherlands, Italy and England)  with  the  risk
spread  over  in  excess  of 50 projects in 12 petroleum systems and over 103m of Proven  &  Probable  Reserves.  It
operates on both onshore and offshore projects including a producing gas field.

Following the acquisition of ATI Oil Plc, Northern has recoverable Proven and Probable reserves of approximately 103
million barrels of oil equivalence. 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 with Dyas B.V., EBN, the Netherlands'
state oil company, and NAM as partners.

Northern  manages the largest licensed exploration area in Italy, with over 14,000 km², predominantly offshore,  but
includes six licences in the Po Valley oil and gas province in the north of the country.

In  the  UK  Northern  has 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 Avington oil field. It also has planning consents to drill an  eastward
extension  of  the  Horndean  oil field and an exploration well at Havant. Northern has  a  50%  interest  in  these
ventures.

For further information on Northern visit www.northpet.com.

Contact Information

  • Northern Petroleum Plc