Northern Petroleum Plc
LSE : NOP

May 18, 2009 05:49 ET

Auditted Final Results)

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

                                Final Audited Results for the Year Ended 31 December 2008

Northern  Petroleum  Plc  is pleased to announce its final results for the year ended 31 December  2008.  These  
results reflect  the  continued  progress at the Company, with significant increases in both  profit  and  cash  flow
from  its operational  activity  to  add to the significant asset trading profits that have once again  been 
generated.  Northern continues  to  focus  on bringing its Netherlands developments on stream, but also has a range of
other  projects  which offer  very  high  potential with the right spread of geological risk and low political risk 
in  many  different  proven petroleum systems.

Copies of this results announcement are today being posted to the shareholders of ATI Oil Plc ("ATI") ahead of the 
Court and General Meetings of ATI shareholders that are scheduled for 28 May.

There  will  be a presentation for analysts at 12.45 on 18 May at the offices of Buchanan Communications, 45
Moorfields, EC2Y  9AE.  Analysts who are unable to attend in person will also be able to participate via conference
call from  12.30 that morning, and should contact Ben Romney at Buchanan Communications before 12.15 on 18 May for 
dial in information.

The results presentation will be made available on the Company's website, www.northpet.com, in due course.


Financial highlights:

                                                                          Year ended                    Year ended
                                                                         31 December                   31 December
                                                                                2008                          2007
                                                                               €'000                         €'000
                                                                                                       (Restated)*
------------------------------------------------------------------------------------------------------------------
                                                                                                                  
Revenue                                                                        6,954                         5,931
Profit  before taxation                                                       11,558                        30,048
Profit  for the year                                                           9,914                        20,957
                                                                                                                  
Basic earnings per share on profit for the year                           14.1 cents                    29.7 cents
Diluted earnings per share on profit for the year                         13.5 cents                    27.7 cents
------------------------------------------------------------------------------------------------------------------
                                                                                                                  
                                                                                                                  
Cash and cash equivalents                                                     34,927                        28,929
Other working capital                                                         17,300                        15,757
Net assets                                                                    63,545                        55,277
Total distributable reserves                                                  33,023                        21,851
------------------------------------------------------------------------------------------------------------------
                                                                                                              
                                                                                                                  
Unaudited Net Commercial Oil & Gas Reserve Quantities                          76.43                         76.55
- Proven and Probable reserves (million boe)
------------------------------------------------------------------------------------------------------------------

* Details of changes in presentation and other restatements are given in notes 2, 3 and 4.





Highlights for year ended 31 December 2008:

    *   Completion of the profitable sale of interests in underground gas storage projects to Star Energy Group Plc
        realising £7 million in cash with up to £3m of contingent consideration;
            
    *   Farm out of six offshore Sicily Channel licences in Italy, GR17-NP, GR18-NP, GR19-NP, GR20-NP, GR21-NP, GR22-NP
        to Shell Italia E&P S.p.A - the agreement envisages further discussions on expanding the joint activities in
        Italy;
        
    *   Decision to develop four Dutch gas fields as pipeline projects, not electricity generation developments;
            
    *   Many critical long lead items for all six oil and gas field developments were ordered; and
        
    *   An independent resource evaluation of six of the Group's prospects in the Adriatic Sea, assessed the combined
        mean potential of the prospects at 2.29 billion barrels of oil in place, rising to a potential of 6.03 billion
        barrels at a 10% probability.
        


Post Period highlights:

    *   Recommended  acquisition of ATI Oil Plc ("ATI"), based on 1 new Northern share for every 8 ATI  shares  not
        already owned by the Group - completion expected at the end of June;
        
    *   Completion of hydraulic fracturing at Brakel, Wijk en Aalburg and Ottoland - the outstanding result being
        Brakel which is anticipated to come on stream at an initial rate of 11mmcfd (approximately 850 boepd net to
        Northern), significantly higher than previous predictions;

    *   Gross initial production rates in total for the six fields of approximately 4,760 barrels of oil equivalent per
        day (2,100 net to Northern) maintained, with Northern share anticipated to rise to 6,000 share barrels of oil
        equivalent per day by 2013;
            
    *   Commencement of two well exploration programme in The Netherlands - Nieuwendijk (56 to 83 million barrel oil
        prospect, Northern 22.5%) currently drilling, with Tiendeveen (67 to 98 bcf gas prospect, Northern 22.5%)
        prospect to follow;
        
    *   2D seismic survey completed over 7 licences offshore Sicily, 6 of which funded by Shell Italia - the
        interpretation of results underway;
    *   The preliminary award of 3 new offshore licences, 2 of which are in a new core area offshore Calabria in the
        Ionian Sea;
    *   A new UK onshore licence has been awarded covering an extension of a prospect to be targeted by the Havant-1
        exploration well (mean estimate of 16 million barrels of oil in place, Northern 50%), for which planning 
        permission has been granted; expected to be drilled as part of a multi well drilling programme which will 
        include the Markwells Wood-1 appraisal well (mean estimate of 27.5 million barrels of oil in place, Northern 
        50%);
    *   In January the Avington oil field commenced production; and
    *   The Company is working on plans to drill upwards of 10 wells across the portfolio in the next 18 months.
            

Richard Latham, Chairman of Northern, commented:

"These  are challenging and changing times. Northern is well positioned to deal with them. We have assets which  we 
 are bringing  into production to create not just a sustainable cash flow but one which will be expanded upon.  We 
 have the cash,  working capital and operating cash flow to bring on stream the planned developments, and we have a 
massive upside potential  which, as the farmout to Shell Italia E&P S.p.A demonstrates, is capable of being realised 
 even  in  today's financial environment. It is that potential and the need to effect full control of the commercial 
transactions for their development and realisation that lies behind our agreed acquisition of the entire share capital 
of ATI Oil Plc that  was announced on 3 April 2009."


Chris Foss, Finance Director of Northern, commented:
"I am delighted to be able to report to shareholders that the Group has achieved a pre-tax profit for the year of 
€11.56 million.
"Almost €9 million of this profit relates to the gain made on the sale of our non-core underground gas storage 
interests to  Star Energy Group Plc for greatly above the book cost of the assets. The global economic crisis has seen 
company and asset valuations and hydrocarbon prices falling significantly over the last 12 months, so the timing  of 
your  Board's decision in June last year to sell these assets was exemplary.
"It  is  equally as pleasing that the Group has reported a significant increase in both profit and cash  flow  from
its operational  activity. While much of this must of course be attributed to the rise in average oil and gas prices, 
 costs have also been reduced and controlled through operational efficiencies.

"As  a  result  of  these  profits  from both asset trading and operations, the Company's  balance  sheet  continues
to strengthen  year on year. In the current financial climate this I believe separates us out from many of our  AIM  
listed peers,  allowing  us  to  both  carry on with our business pretty much as normal while  also  being  able 
consider  the interesting opportunities that are arising as a result of the closure of the equity and debt markets to
the weak and the over  leveraged.  The  recommended offer for the remaining shares in ATI Oil Plc that the Group 
does  not  already  own demonstrates  this amply, and will, upon completion, add significantly to our existing Italian 
reserve  and  prospective resource base."
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 35 years experience as a petroleum geologist.

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

Investec (NOMAD and Financial Adviser)                                 Tel: +44 (0) 20 7597 5000
Michael Ansell / Patrick Robb                                                                   

Blue Oar (Joint Broker)                                                Tel: +44 (0) 20 7448 4400
Jerry Keen / Toby Gibbs                                                                         
                                                                                                
Jefferies International (Joint Broker)                                 Tel: +44 (0) 20 7029 8000
Chris Snoxall / Schuyler Evans                                                                  

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

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

Notes to Editors:

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

CHAIRMAN'S STATEMENT

These  are  challenging and changing times. Northern is well positioned to deal with them. We have assets which  we 
are bringing  into production to create not just a sustainable cash flow but one which will be expanded upon.  We 
have  the cash,  working capital and operating cash flow to bring on stream the planned developments, and we have a 
massive upside potential  which, as the farmout to Shell Italia E&P S.p.A demonstrates, is capable of being realised 
even  in  today's financial environment. It is that potential and the need to effect full control of the commercial 
transactions for their development and realisation that lies behind our agreed acquisition of the entire share capital
of ATI Oil Plc that  was announced on 3 April 2009.

I am in disagreement with our Prime Minister's view of the global economic crisis. I would state that your Board 
foresaw the  warning  signs  of the current financial turbulence and since mid-2006 has adopted a strategy of tight 
expenditure controls  coupled with strategic asset sales that have realised significant profit for the Group. I can 
 now  report  to shareholders  a  significant  pre tax profit for the second year running, which in the  2008  year 
 mounted  to  €11.56 million,  plus  an  increased net cash position of €35 million with further working capital of
 €17  million,  being  net current  assets less current liabilities plus long term receivables. Together these total 
€52 million, or  approximately €0.73 per share currently in issue. This has been achieved ahead of oil and gas 
production start up in the Netherlands.

We  have  made  the  decision to report in Euros mindful that our two main countries of operation  are  located  in
 the Eurozone. Following operational activities during 2008 it is considered appropriate, that Northern reports its
 financial results in the same currency as its major expenditures and revenues. The effective date of the transition 
to Euros was 1 July  2008  and  the  financial statements have been restated for you on that basis. Shareholders  
will  have  seen  not insignificant  exchange losses and gains reported in the Group's income statement in previous
 years,  periods  in  which foreign exchange markets were far less volatile than they were in 2008.

Shareholders,  Board  and  staff  have been commendably patient whilst the processing  of  licence  transfers,
planning consents  and  zoning approvals have been ongoing in The Netherlands during 2008. These hurdles are now 
clearing  and  I look forward to reporting first production in the year ahead.

We  have  recently  carried out hydraulic reservoir fracturing operations on two gas fields and one  oil  field  in 
 the southwest  of  The  Netherlands. As a result it is likely that our production and future  profitability  
forecasts  will exceed the original forecast estimates of 4,670 boepd gross (2,100 net to Northern). Operations now 
move north-eastwards to  the Grolloo and Geesbrug gas fields where we are making arrangements to minimise the lead 
time to production through a project change to delivery of raw gas by pipeline over a short distance to utilise 
existing third party gas processing facilities.


This  year we are able to take advantage of our careful financial management to bring on stream some of the 33.5 
million barrels  oil  equivalent of net proven and probable reserves in five fields, namely the four gas fields  plus
Ottoland, where  the Ottoland 1 sidetrack will be put in production ahead of full field development. The Papekop field 
development is  awaiting  certain  planning approvals from the Dutch authorities. Furthermore we have been able  to  
commit  to  and commence  a  two well exploration drilling programme. The Nieuwendijk well is in progress and the 
Tiendeveen well,  near the  Geesbrug gas field, will follow. The latter has been independently viewed as having the 
lower risk but also has the outside potential to greatly expand our position in the northeast region.

With  little  fanfare, the technical team has completed their works on the Utrecht licence expanding  the  inventory 
of potentially commercial existing gas discoveries and further identified one sizeable exploration prospect. I believe 
that there is more to come in other areas.

Our  Netherlands  team  are also to be complemented on taking new initiatives. I will mention but  three  instances.
At Waalwijk  the  previous  taxation  charge upon gas consumed in operations has been successfully  challenged,  
gaining  a €407,000 refund covering the first sixteen months of our period as operator on behalf of the joint venture.
We have also supported  through the grant of the first contract a novel drilling rig concept, designed in The 
Netherlands  and  Czech manufactured.  The  rig  is  capable, mast and draw-works included, of being dismantled into
container  size  units  for speedier, cheaper and less disruptive mobilisation. Also at Nieuwendijk we have utilised 
the Casing While Drilling (CWD) process  achieving a European and eastern hemisphere record drilling run of 780 metres 
(2,567 feet)  for  this  type  of system. This is another technology to be welcomed by our industry for safer and 
speedier drilling through unconsolidated formations.

Our  south of England onshore position does not rival our core areas of Italy and The Netherlands in size or 
excitement, but  it is of profitable potential and, given our current UK domicile, tax efficient. Northern's existing 
production  is about  27  bopd  from  the small non-operated interests in Avington, which came into production  in
 January  2009,  and Horndean.  We have now leases and gained planning consent for the Markwells Wood and Havant 
drilling sites to  which  we would  expect  to  add  Hedge  End  and Baxters Copse. Baxters Copse is on a licence 
awarded  during  2008  operated  by Providence  Resources  (GB) Limited. The plan is to apply long reach drilling 
technology from the  Singleton  production facility thereby dispensing with the requirement for a new well location.
In an arena not populated by a great number of well financed companies to offer a good price, we continue with the 
strategy of drilling and producing.

I  see  Italy as our core area that offers the greatest potential for material growth. We can now expect the 
acquisition of  ATI Oil Plc to complete during June and provide us with better flexibilities to realise value. 
Unfortunately success was  not  achieved at Savio-1, but I am encouraged in my view by the farmout deal announced in
December 2008 with  Shell Italia  E&P  S.p.A  ("Shell Italia") for the six licences in one of our core areas in the 
thrust belt offshore  west  of Sicily.  Under  the  terms  of  the contract there are additional licences remaining 
the  subject  of  further  possible arrangements between the companies.

In  early  2009  we  recorded  a  joint 2D seismic survey of 2,463 km, the results of  which  will  determine  the
next activities.  Our  agreement grants Shell Italia the option to acquire 3D seismic and drill a  well  to  maintain 
a  70% interest in licences G.R20.NP, G.R21.NP and G.R22.NP and a 55% interest in licences G.R17.NP, G.R18.NP and 
G.R19.NP. and their cover of licence expenditures could exceed €100 million.

Following the 2D survey above an additional 2D seismic survey totalling 602 km, was also carried out to infill our 
 2006 survey  over  C.R147.NP. These data were acquired order to better define the large primary prospect  Arcturus 
 plus  the Antares and Altair prospects which had been mapped.

During  the  early part of 2009 we have also seen the successful preliminary award of licence d351C.R-.NP. This 
licence covers  the  full  mapped eastern extension of our now giant Vesta prospect, currently mapped at well over 
600  million barrels  resource potential. This change resulted from a detailed study of volcanic strata in the area
which  in  parts overlie the target formations and intensive seismic reprocessing of our 2006 survey.

I  intend that drilling Vesta and Arcturus will form an important part of our 2010 programme and believe that,  as 
with the thrust belt, we will find a partner to help with the costs.

We  have  been working on another core area in the southern Adriatic Sea. Eni's seismic data over and around the 
Rovesti oil  discovery will likely be purchased. After completing our revised evaluation a partner will be sought to 
assist  in funding the appraisal and development programme. It has also been a time to move forward with the 
evaluation and mapping of  our wider and substantial exploration activities in an area which holds a drilling record 
of five successes for  all five prospects drilled to date.

I have reviewed our Italian activities at some length. The next exciting move into significant production and
profitable cash  flow  will happen in The Netherlands in the coming year. The Group's Dutch assets have reserves and 
resources  for subsequent expansion to a provisional 6,000 boepd target from existing discoveries by 2013. I believe 
that in  Italy  we have  acquired and identified an opportunity of rare potential, just one part of which has already 
caught the  attention of  a major oil company. I will list them again as I am certain that they will form the subject 
of future statement from me  and  announcements to shareholders. The southern Adriatic core area of 3,681 km² with a 
one hundred percent drilling success  record  and  proven and probable reserves currently independently assessed at 
53.2 million barrels;  the  Vesta prospect  of  over  600 million barrels resource potential in C.R146.NP close to the
boundary with Malta;  the  multiple large  prospects  in C.R147.NP covering the Italian northern end of the Tunisian 
Birsa oil production trend;  three  gas discoveries  down  slope  of  the 1.5 trillion cubic feet Luna gas field and 
certainly not  least  the  west  of  Sicily extension of the Apennine-Maghrebian thrust productive belt that Shell 
Italia farmed into last year.

These  are  many  projects which offer very high potential with the right spread of geological risk  in  many 
 different proven petroleum systems, and yet all are located in an acceptable low political risk country.

This  is a vast future for our Company which perhaps has remained insufficiently understood whilst we have extended 
our licensed positions and undertaken critical geological and geophysical works. It will require funding from third 
parties which  will  see  our licence interests reduced until increasing profits are achieved in The Netherlands  to 
 make  some contribution. Nothing however can deter from this being a future of enormous potential for our Company.




R H R Latham
Chairman















Consolidated Income Statement
For the year ended 31 December 2008


                                                                                     Year ended     Year ended
                                                                                    31 December    31 December
                                                                                           2008          2007*
                                                            Notes                         €'000          €'000
                                                                                                     (Restated)
-----------------------------------------------------------------------------------------------------------------
                                                                                                                       
Revenue                                                                                   6,954          5,931
-----------------------------------------------------------------------------------------------------------------
    
Production costs                                                                         (1,752)        (2,018)
Depreciation, depletion and amortisation - property, plant &                             (2,377)        (3,237)
equipment
-----------------------------------------------------------------------------------------------------------------

Cost of sales                                                                            (4,129)        (5,255)
-----------------------------------------------------------------------------------------------------------------
      
Gross profit                                                                              2,825            676
                                                                                                                             
Pre-licence costs                                                                          (463)          (193)
-----------------------------------------------------------------------------------------------------------------
      
Administrative expenses - other                                                          (1,774)        (2,023)
Administrative expenses - share incentives                                                 (137)          (771)
-----------------------------------------------------------------------------------------------------------------

Administrative expenses - total                                                          (1,911)        (2,794)
                                                                                                                             
Other operating income                                                                       57            776
Profit on disposal of tangible assets                           5                         8,943         28,843
Deemed profit on disposal of associate                                                        1            128
-----------------------------------------------------------------------------------------------------------------
      
Profit from operations                                                                    9,452         27,436
                                                                                                                             
Finance charges                                                                           (711)              -
Finance income                                                                            2,959          2,752
                   
Share of operating loss of joint ventures & associates                                     (142)          (140)
                                                                                                                             
Profit before tax                                                                        11,558         30,048
                                                                                                        
                                                                                                                             
Tax expense                                                                              (1,644)        (9,091)
-----------------------------------------------------------------------------------------------------------------
                                                                                                       
                                                                                                                           
Profit for the year                                                                        9,914        20,957
-----------------------------------------------------------------------------------------------------------------
                                                                            
                                                                                                                             
Basic earnings per share on profit for the year                  6                    14.1 cents     29.7 cents
-----------------------------------------------------------------------------------------------------------------
                                                                                                                             
Diluted earnings per share on profit for the year                6                    13.5 cents     27.7 cents
-----------------------------------------------------------------------------------------------------------------

* Details of changes in presentation to the consolidated income statement and other restatements are given in 
notes 2, 3 and 4.

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

Consolidated Balance Sheet
at 31 December 2008
                                                                                    2008                    2007*
                                                    Notes                          €'000                    €'000
                                                                                                       (Restated)
-----------------------------------------------------------------------------------------------------------------
Assets                                                                                                           
Non-current assets                                                                                               
Intangible assets                                       7                         12,369                   11,783
Property, plant and equipment                           8                         12,498                   13,393
Investments in joint ventures                                                         70                        -
Investments in associates                                                             13                      162
Loans and other receivables                             9                          5,613                    6,941
-----------------------------------------------------------------------------------------------------------------
                                                                                  30,563                   32,279
Current assets                                                                                                   
Inventories                                                                           55                      100
Trade and other receivables                             9                         21,249                   13,716
Cash and cash equivalents                                                         34,927                   28,929
-----------------------------------------------------------------------------------------------------------------
                                                                                  56,231                   42,745
                                                                                                                 
-----------------------------------------------------------------------------------------------------------------
Total assets                                                                      86,794                   75,024
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Liabilities                                                                                                      
Current liabilities                                                                                              
Trade and other payables                                                           5,949                    4,255
Corporation tax liability                                                          3,868                      745
-----------------------------------------------------------------------------------------------------------------
                                                                                   9,817                    5,000
Non-current liabilities                                                                                          
Trade and other payables                                                              74                       46
Provisions                                                                         6,697                    6,354
Deferred tax liabilities                                                           6,661                    8,347
-----------------------------------------------------------------------------------------------------------------
                                                                                  13,432                   14,747
                                                                                                                 
-----------------------------------------------------------------------------------------------------------------
Total liabilities                                                                 23,249                   19,747
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
-----------------------------------------------------------------------------------------------------------------
Net assets                                                                        63,545                   55,277
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Capital and reserves                                                                                             
Share capital                                          10                          4,488                    4,468
Share premium                                                                     23,964                   23,885
Special reserve (Distributable)                                                    4,544                    4,544
Special reserve (Undistributable)                                                    154                      154
Share incentive plan reserve                                                       2,384                    3,200
Foreign currency translation                                                       (468)                    1,719
reserve
Retained earnings                                                                 28,479                   17,307
-----------------------------------------------------------------------------------------------------------------
Total equity                                                                      63,545                   55,277
-----------------------------------------------------------------------------------------------------------------

*  Details of changes in presentation to the consolidated balance sheet and other restatements are given in notes
2, 3  and 4.
All amounts are attributable to equity shareholders of the parent

Consolidated Cash Flow Statement
for the year ended 31 December 2008
                                                                                   Year ended          Year ended
                                                                                  31 December         31 December
                                                                                         2008               2007*
                                                                                        €'000               €'000
Cash flows from operating activities                                                                   (Restated)
-----------------------------------------------------------------------------------------------------------------
Profit before tax                                                                      11,558              30,048
Depreciation, depletion and amortisation                                                2,377               3,294
Depreciation - non oil and gas property, plant and                                        204                 100
equipment
Profit on disposal of property, plant and equipment                                   (8,937)            (17,050)
Foreign exchange (gain)                                                                 (898)             (1,756)
Finance income                                                                        (2,061)               (996)
Finance charges                                                                           711                   -
Share based payments                                                                      442                 640
Expenses settled by issue of shares                                                        64                  56
Share of operating loss in associate                                                      142                 140
Deemed profit on disposal of associate                                                    (1)               (128)
-----------------------------------------------------------------------------------------------------------------
Net cash inflow before movements in working capital                                     3,601              14,348
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Decrease / (increase) in inventories                                                       45                (60)
Increase in trade and other receivables                                               (5,635)            (15,926)
Increase / (decrease) in trade and other payables                                       2,064                (59)
-----------------------------------------------------------------------------------------------------------------
Net cash outflow from changes in working capital                                      (3,526)            (16,045)
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Taxes paid                                                                                  -                   -
                                                                                                                 
Net cash inflow / (outflow) from operating activities                                      75             (1,697)
                                                                                                                 
Cash flows from investing activities                                                                             
Interest received                                                                       1,485                 996
Interest paid                                                                            (10)                   -
Purchase of property, plant and equipment                                             (1,915)             (7,170)
Sale of property, plant and equipment                                                   8,989              17,177
Expenditure on exploration and evaluation assets                                      (1,771)             (1,081)
Investment in joint venture company                                                      (87)                   -
Loans to joint ventures and associated companies                                        (144)               (946)
-----------------------------------------------------------------------------------------------------------------
Net cash inflow from investing activities                                               6,547               8,976
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Cash flows from financing activities                                                                             
Proceeds from the exercise of equity share warrants                                        35                 477
-----------------------------------------------------------------------------------------------------------------
Net cash inflow from financing activities                                                  35                 477
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Net increase in cash and cash equivalents                                               6,657               7,756
Cash and cash equivalents at start of year                                             28,929              20,237
Effect of exchange rate movements                                                       (659)                 936
-----------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of year                                               34,927              28,929
-----------------------------------------------------------------------------------------------------------------

* Details of the restatement of the consolidated cash flow statement are given in notes 2, 3 and 4. There have
been no significant non-cash transactions during the year.

                                                                                                                 
Consolidated Statement of Changes in Equity
for the year ended 31 December 2008
                                                                                                                 
                                                      Share                Share    Foreign                      
                                           Share    premium    Special incentive   currency   Retained           
                                                                            plan
                                         capital    account   Reserves   reserve   translat   earnings     Total*
                                                                                        ion
                                                                                    reserve
                                           €'000      €'000      €'000     €'000      €'000      €'000      €'000
-----------------------------------------------------------------------------------------------------------------
At 31 December 2006 as reported            4,432     23,388      4,698       372      2,337    (3,122)     32,105
Changes in accounting policy                                                                                     
-       IFRS 2 Share based payment             -          -          -     2,244          -    (2,244)          -
-       Capitalisation of salaries             -          -          -         -          -      1,660      1,660
-----------------------------------------------------------------------------------------------------------------
At 1 January 2007 as restated              4,432     23,388      4,698     2,616      2,337    (3,706)     33,765
                                                                                                                 
Exchange differences on                                                                                          
translation of foreign operations              -          -          -         -      (618)          -      (618)
-----------------------------------------------------------------------------------------------------------------
Net income / (expense) recognised                                                                                
directly in equity                             -          -          -         -      (618)          -      (618)
Profit for the year                            -          -          -         -          -     20,957     20,957
-----------------------------------------------------------------------------------------------------------------
Total recognised income and expense            -          -          -         -      (618)     20,957     20,339
for the year
Issue of shares during the year               36        497          -         -          -          -        533
Equity share warrants issued                   -          -          -      (56)          -         56          -
Share based payments                           -          -          -       640          -          -        640
-----------------------------------------------------------------------------------------------------------------
At 1 January 2008                          4,468     23,885      4,698     3,200      1,719     17,307     55,277
Exchange differences on                                                                                          
translation of foreign operations              -          -          -         -    (2,187)          -    (2,187)
-----------------------------------------------------------------------------------------------------------------
Net income / (expense) recognised                                                                                
directly in equity                             -          -          -         -    (2,187)          -    (2,187)
Profit for the year                            -          -          -         -          -      9,914      9,914
-----------------------------------------------------------------------------------------------------------------
Total recognised income and expense            -          -          -         -    (2,187)      9,914      7,727
for the year
Issue of shares during the year               20         79          -         -          -          -         99
Equity share warrants issued                   -          -          -   (1,258)          -      1,258          -
Share based payments                           -          -          -       442          -          -        442
-----------------------------------------------------------------------------------------------------------------
At 31 December 2008                        4,488     23,964      4,698     2,384      (468)     28,479     63,545

*  Details  of  changes in presentation to the consolidated statement of changes in equity and other restatements
are given in notes 2, 3 and 4.

All amounts are attributable to equity shareholders of the parent.
Notes to the Final Resultsfor the year ended 31 December 2008

1. BASIS OF PREPARATION
The financial information presented in this announcement does not constitute the Company's statutory accounts for
the  years ended 31 December 2008 or 2007 (but is derived from those accounts). Statutory accounts for 2007  have
been  delivered to the Registrar of Companies, and those for 2008 will be delivered in due course.  The  auditors
have  reported  on  those accounts; their report was (i) unqualified, (ii) did not include  a  reference  to  any
matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.

The Company appointed KPMG Audit Plc as auditor in December 2008 replacing BDO Stoy Hayward LLP.


2. ACCOUNTING POLICIES
The  principal accounting policies applied in the preparation of these consolidated financial statements are  set
out  in  the 2007 financial statements. These policies have been consistently applied to all the years presented,
unless otherwise stated.

Changes to Accounting policies

Changes to Accounting policies

Following a review of certain accounting policies by the Board the following changes to accounting policies  have
been made:

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

        More extensive information on the change in functional currency from Sterling to Euro of the Company  and
        three of its subsidiaries with effect from 1 July 2008 is detailed in note 4.

    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 brings 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 €1,669,000 as at 1 January 2007.
        
        More extensive information on this change is detailed in note 4.

        
    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 €2,244,000 in consolidated retained earnings as at 1 January 2007.
        
        More extensive information on this change is detailed in note 4.
        

New standards and interpretations - Standards Adopted for 2008

Other standards and interpretations adopted in the year had no significant impact on the financial statements.


3. CHANGES IN FUNCTIONAL CURRENCY

The functional currency is the currency of the primary economic environment in which an entity operates.Euro, 
Sterling  and  US Dollars. In line with their responsibilities, the Directors have  considered,  and  will
continue  to  consider, which of these three currencies is the Company's functional currency. The Directors  have
determined that the Company's functional currency changed from Sterling to the Euro with effect from 1 July 2008.

The  Company  and Group's financial performance and operations are predominantly influenced by three  currencies:

The  decision to move to traditional gas developments, rather than electricity generation, announced on  30  June
2008  and  the resultant acceleration of development is considered to be the event that triggered the  change  in
functional currency. European gas is priced in Euro and by prioritising traditional gas developments the  Company
and  Group significantly enhanced the Euro component of current and future revenues and expenditures in the short
to medium term.

Other business developments around 1 July 2008 also indicated that a change to Euro was appropriate.

IAS  21  requires  the Directors to consider the following in determining functional currency: "Primary  economic
environment", "sales prices for goods and services", "competitive forces and regulations", "labour materials  and
other costs". Consideration of these factors pointed to the Euro as the most important currency for the business:

    *       The primary economic environment in which Northern Petroleum Plc operates is the European Union
    
    *       Northern's income is primarily generated from gas invoiced in Euro
        
    *       Northern is subject to EU wide competitive forces and regulation influencing both revenues and costs
        
    *       Shareholders' money invested by Northern Petroleum has been primarily spent in Euro
        
    *       The Group has and continues to pursue new financing in Euro
        
        
The  following subsidiaries of the Company have also changed their functional currencies with effect from 1  July
2008:

    *       Northern Petroleum (UK) Limited - the subsidiary that holds the Group's Italian licence interests;
        
    *       NP Netherlands Limited - parent company of Northern Petroleum Nederland B.V.; and

    *       NP Oil & Gas Holdings Limited - parent company of NP Netherlands Limited.
        
    Consistent with the change in the Company's, and three of its subsidiaries', functional currency,  the  Group
    has  also  changed  its  presentation  currency from Sterling to the Euro  with  effect  from  1  July  2008.
    Comparative figures for all 2007 primary statements, plus the opening 2007 balance sheet have therefore  been
    re-presented in Euro.
    
    The  change of the Group's presentation currency and that of the Company's functional currency were accounted
    for  in  accordance  with  IAS 21 "The Effects of Changes in Foreign Exchange Rates"  and  SSAP  20  "Foreign
    Currency  Translation"  respectively.  On  the  change  of  the  Group's  presentation  currency,  the  Group
    consolidated  prior  year comparative accounts have been restated: The Company's and the three  subsidiaries'
    comparative  figures previously reported in Sterling have been translated into Euro at the exchange  rate  at
    the  date  of  change over 1 July 2008; the balance sheets of subsidiaries which have maintained Sterling  as
    their  functional  currency have been translated to Euro at the closing rate of the  year  and  their  income
    statements have been translated at the average rate for the year; and subsidiaries that already had the  Euro
    as their functional currency have been consolidated without adjustment.
    
The change of the Company's functional currency was accounted for prospectively from 1 July 2008. Accordingly the
assets,  liabilities and equity items of the Company as at 31 December 2007 were translated  from  Sterling  into
Euro  at the closing exchange rate on that date of €:£ 0.79225 as reported by the European Central Bank, (ECB)  ,
on their website www.ecb.int.


4. SUMMARY OF RESTATEMENTS


The  effect  of  the  various restatements referred to in these financial statements on the  previously  reported
income statement, net assets and capital and reserves can be summarised as follows:


                                                                                Income                  Net      
                                                                             Statement               Assets      
                                                       Notes                     €'000                €'000      
-----------------------------------------------------------------------------------------------------------
                                                                                                               
At 31 December 2006                                                                                              
(restated for functional currency)                                                 n/a               32,096
                                                                                                                 
Capitalisation of directly attributable                                            n/a                1,669      
salaries
Share incentive charge                                                             n/a                    - 
-----------------------------------------------------------------------------------------------------------

At 1 January 2007 (as restated)                                                    n/a               33,765      
                                                                                                                 
Exchange differences on translation of foreign                                     n/a                (618)      
operations
Share based payments                                                               n/a                  640      
Issue of shares during the year                                                    n/a                  533      
                                                                                                                 
Profit for the year                                                             20,847               20,847      
                                                                                                                 
Adjustments:                                                                                                     
Capitalisation of directly attributable                                            836                  882      
salaries
Share incentive charge                                                              46                    -      
Reversal of property, plant and equipment                                                                        
accounting adjustment                                      7                     1,909                1,909      
Deferred taxation adjustments                                                  (2,681)              (2,681)      
                                                                                                             
-----------------------------------------------------------------------------------------------------------

At 31 December 2007 (as restated)                                               20,957               55,277  
-----------------------------------------------------------------------------------------------------------
    
                                                                                                                 
Further  information  on  all  of  these adjustments is detailed in the notes to these  financial  statements  as
indicated above.


5.  PROFIT ON DISPOSAL OF ASSETS


                                                                                           2008              2007
                                                                    Notes                 €'000             €'000
                                                                                                       (Restated)
-----------------------------------------------------------------------------------------------------------------
                                                                                                               
Disposal of subsidiaries                                             i)                   8,953                 -
Disposal of property, plant and equipment                            ii)                   (10)            17,060
Disposal of proprietary knowledge                                                             -            11,783
-----------------------------------------------------------------------------------------------------------------
Total profit on disposal of assets                                                        8,943            28,843
-----------------------------------------------------------------------------------------------------------------


    i)      Disposal of subsidiaries

                                                                                           2008              2007
                                                                     Notes                €'000             €'000
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Sale proceeds                                                                             9,077                 -
Cost of share of assets disposed of                                      7                 (46)                 -
Disposal expenses                                                                          (78)                 -
-----------------------------------------------------------------------------------------------------------------
Profit on disposal of subsidiaries                                                        8,953                 -
-----------------------------------------------------------------------------------------------------------------

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 ("UGS") projects to  Star  Energy  Group  Plc  ("Star"),  a
subsidiary  of  Petronas  International Corporation Limited, for a consideration of up  to  £10  million  (€12.23
million). The sale involved NPOG selling its entire shareholding in two of its' subsidiaries, Gas Storage Limited
and Overseas Gas Storage Limited, to Star.

The initial consideration of £7 million (€9.03 million), plus working capital of approximately £35,000 (€46,000),
was  received at completion on 21 October 2008. Further contingent payments of £2 million (€2.10 million) and  £1
million  (€1.05 million) will be made upon the Final Investment Decisions ("FID") being taken on UGS projects  in
the northern and southern parts of the Waalwijk licence respectively.
    ii)     Prior year disposal of property, plant and equipment

It  was  announced on 23 April 2007 that Northern Petroleum Nederland B.V. ("NPN") had signed a binding Heads  of
Agreement  with  Dyas B.V. ("Dyas") under which Dyas would acquire, with an effective date of 1 January  2007,  a
quarter  of NPN's interests in six oil and gas discoveries and three exploration wells. In exchange, Dyas  agreed
to  transfer a 23.6% interest in the producing gas field in block P12, and pay €18 million in cash to NPN,  which
additionally  retained a 5% overriding oil production royalty over part of the transferred oil  reserves  in  the
Ottoland and Papekop oil fields.

                                                                                           2008              2007
                                                                     Notes                €'000             €'000
                                                                                                       (Restated)
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Sale proceeds                                                                                 -            18,445
Cost of share of assets disposed of                                      8                    -             (562)
Disposal expenses                                                                          (10)             (823)
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
Profit on disposal of property, plant and equipment                                        (10)            17,060
-----------------------------------------------------------------------------------------------------------------

The profit as reported previously was €15,151,000. Further details of this restatement are contained in note 4.


6. EARNINGS PER SHARE
Basic 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.

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.


                                                                                         2008                 2007
                                                                                        €'000                €'000
                                                                                                        (Restated)
------------------------------------------------------------------------------------------------------------------
                                                                                                                  
Net profit attributable to equity holders used in basic                                 9,914               20,957
calculation
------------------------------------------------------------------------------------------------------------------
                                                                                                                  
Net profit attributable to equity holders used in dilutive                              9,914               20,957
calculation
------------------------------------------------------------------------------------------------------------------
                                                                                                                  
                                                                                       Number               Number
                                                                                         '000                 '000
------------------------------------------------------------------------------------------------------------------
Basic weighted average number of shares                                                70,538               70,453
                                                                                                                  
Dilutive potential of ordinary shares:                                                                            
Warrants exercisable under Company schemes                                              2,963                5,270
------------------------------------------------------------------------------------------------------------------
Diluted weighted average number of shares                                              73,501               75,723
------------------------------------------------------------------------------------------------------------------

The calculation of the diluted EPS assumes all criteria giving rise to the dilution of the EPS are achieved.


7. INTANGIBLE EXPLORATION AND EVALUATION ASSETS
Exploration and evaluation assets represent the cost of investment in oil and gas projects where it is too  early
to make a decision regarding the existence or otherwise of commercial reserves.
                                                                                                                
                                                   United                                                       
                                                  Kingdom        Italy   Netherlands    Other EU           Total
                                                    €'000        €'000         €'000       €'000           €'000
----------------------------------------------------------------------------------------------------------------
                                                                               
Cost:                                                                                                           
At 1 January 2008                                   4,968        2,006         4,776         210          11,960
Additions                                              85          611         1,075           -           1,771
Disposals                                               -            -          (46)           -            (46)
Exchange movement                                 (1,113)            -             -        (37)         (1,150)
----------------------------------------------------------------------------------------------------------------
At 31 December 2008                                 3,940        2,617         5,805         173          12,535
----------------------------------------------------------------------------------------------------------------
                                                                                                                
Exploration expenditure written off:
At 1 January 2008                                      50            -            99          28             177
Exchange movement                                    (11)            -             -           -            (11)
----------------------------------------------------------------------------------------------------------------
At 31 December 2008                                    39            -            99          28             166
----------------------------------------------------------------------------------------------------------------
                                                                                                                
Net book value:
At 31 December 2008                                 3,901        2,617         5,706         145          12,369
----------------------------------------------------------------------------------------------------------------


The comparative tables for 2007 are detailed below:
                                                                                                                
                                                                                                                
                                     United Kingdom        Italy     Netherlands     Other EU              Total
                                              €'000        €'000           €'000        €'000              €'000
----------------------------------------------------------------------------------------------------------------
                                                                                                                
Cost:
At 31 December 2006 as reported               4,562        1,188           4,128          170             10,048
Change in accounting policy                                                                                     
(note 2)                                        477          173             209           20                879
----------------------------------------------------------------------------------------------------------------
At 1 January 2007 as restated                 5,039        1,361           4,337          190             10,927
Additions (as restated)                          48          624             363           46              1,081
Transfer to property, plant and                                                                                 
equipment (note 8)                                -         (44)               -            -               (44)
Exchange movement                             (119)           65              76         (26)                (4)
----------------------------------------------------------------------------------------------------------------
At 31 December 2007                           4,968        2,006           4,776          210             11,960
----------------------------------------------------------------------------------------------------------------
                                                                                                                
Exploration expenditure written                    
off:
At 31 December 2006 as reported                  55            -              42           28                125
----------------------------------------------------------------------------------------------------------------
At 1 January 2007 as restated                    55            -              42           28                125
Writedown for the year                            -            -              57            -                 57
Exchange movement                               (5)            -               -            -                (5)
----------------------------------------------------------------------------------------------------------------
At 31 December 2007                              50            -              99           28                177
----------------------------------------------------------------------------------------------------------------
                                                                                                                
Net book value:
----------------------------------------------------------------------------------------------------------------
At 31 December 2007                           4,918        2,006           4,677          182             11,783
----------------------------------------------------------------------------------------------------------------


8. PROPERTY, PLANT AND EQUIPMENT

    a)      Oil and Gas Assets

                             Oil and Gas    Oil and Gas    Oil and Gas    Oil and Gas    Oil and Gas              
                                  Assets         Assets         Assets         Assets         Assets              
                           (Netherlands)                        (UK) -         (UK) -      (Italy) -         Total
                              -Developed (Netherlands)-      Developed    Undeveloped    Undeveloped
                                            Undeveloped
                                   €'000          €'000          €'000          €'000          €'000         €'000
------------------------------------------------------------------------------------------------------------------
Cost:                                                                                                             
At 1 January 2008                  7,458          7,290            311            751            262        16,072
Additions                              -          1,680              -            114             73         1,867
Exchange movement                      -              -           (77)          (177)              -         (254)
------------------------------------------------------------------------------------------------------------------
At 31 December 2008                7,458          8,970            234            688            335        17,685
------------------------------------------------------------------------------------------------------------------
                                                                                                                  
Depletion,
depreciation and
amortisation:
At 1 January 2008                  3,210              -            116              -              -         3,326
Charge for the year                2,352              -             25              -              -         2,377
Exchange movement                      -              -           (31)              -              -          (31)
------------------------------------------------------------------------------------------------------------------
At 31 December 2008                5,562              -            110              -              -         5,672
------------------------------------------------------------------------------------------------------------------
                                                                                                                  
Net book value:
At 31 December 2008                1,896          8,970            124            688            335        12,013
------------------------------------------------------------------------------------------------------------------


The restated comparative tables for 2007 are detailed below:

                             Oil and Gas    Oil and Gas    Oil and Gas    Oil and Gas    Oil and Gas           
                                  Assets         Assets         Assets         Assets         Assets           
                           (Netherlands)                        (UK) -         (UK) -      (Italy) -      Total
                              -Developed (Netherlands)-      Developed    Undeveloped    Undeveloped
                                            Undeveloped
                                   €'000          €'000          €'000          €'000          €'000      €'000
----------------------------------------------------------------------------------------------------------------
Cost:                                                                                                          
At 31 December 2006                    -            149            349            654              -      1,152
as reported
Prior year                                                                                                     
restatement (note 4)                   -          1,909              -              -              -      1,909
Change in accounting                                                                                           
policy                                 -            688              2             80             20        790
----------------------------------------------------------------------------------------------------------------
At 1 January 2007                                                                                              
(as restated)                          -          2,746            351            734             20      3,851
Additions (as                                                                                                  
restated )                         7,458          5,114              -            104            194     12,870
Transfer from exploration                                                                                      
and evaluation assets (note            -              -              -              -             44         44
7)
Accounting                             -        (1,909)              -              -              -    (1,909)
adjustment
Disposals  (note 5)                    -          (562)           (11)              -              -      (573)
Exchange movement                     -            (8)           (29)            (87)              4      (120)
----------------------------------------------------------------------------------------------------------------
At 31 December 2007 as            7,458          5,381            311             751            262     14,163
----------------------------------------------------------------------------------------------------------------
reported
Restatement of                         -          1,909              -              -              -      1,909
accounting adjustment                                                                                          
----------------------------------------------------------------------------------------------------------------
At 31 December 2007                7,458          7,290            311            751            262     16,072
----------------------------------------------------------------------------------------------------------------
                                                                                                               
Depletion,
depreciation and
amortisation:
At 31 December 2006                                                                                            
as reported                            -              -             99              -              -         99
----------------------------------------------------------------------------------------------------------------
At 1 January 2007                      -              -             99              -              -         99
Charge for the year                                                                                            
(as restated - note                                                                                            
2)                                 3,210              -             27              -              -      3,237
Exchange movement                      -              -           (10)              -              -       (10)
----------------------------------------------------------------------------------------------------------------
At 31 December 2007                3,210              -            116              -              -      3,326
----------------------------------------------------------------------------------------------------------------
                                                                                                               
Net book value:
At 31 December 2007                4,248          7,290            195            751            262     12,746
----------------------------------------------------------------------------------------------------------------


    b)      Non Oil and Gas Assets

                                                                                       Computer                   
                                                                    Leasehold        and Office              Total
                                                                 improvements         equipment
                                                                        €'000             €'000              €'000
-------------------------------------------------------------------------------------------------------------------
Cost:                                                                                                             
At 1 January 2008                                                         303               535                838
Additions                                                                   -                48                 48
Disposals                                                                   -              (46)               (46)
-------------------------------------------------------------------------------------------------------------------
At 31 December 2008                                                       303               537                840
-------------------------------------------------------------------------------------------------------------------
                                                                                                                  
Depreciation:
At 1 January 2008                                                          20               171                191
Disposals                                                                   -              (40)               (40)
Charge for the year                                                        82               122                204
-------------------------------------------------------------------------------------------------------------------
At 31 December 2008                                                       102               253                355
-------------------------------------------------------------------------------------------------------------------
                                                                                                                  
Net book value:
At 31 December 2008                                                       201               284                485
-------------------------------------------------------------------------------------------------------------------


9. TRADE AND OTHER RECEIVABLES
                                                                                           2008              2007
                                                                                          €'000             €'000
-------------------------------------------------------------------------------------------------------------------
Non-current assets                                                                                               
Other receivables                                                                         3,720             6,941
Loans                                                                                     1,893                 -
-------------------------------------------------------------------------------------------------------------------
                                                                                          5,613             6,941
Current assets                                                                                                   
Trade receivables                                                                         3,609             1,523
Other receivables                                                                         4,539             4,676
VAT recoverable                                                                             576               131
Loans                                                                                         -             1,893
Prepayments and accrued income                                                           12,525             5,493
-------------------------------------------------------------------------------------------------------------------
Total trade and other receivables                                                        26,862            20,657
-------------------------------------------------------------------------------------------------------------------

The  €3,720,000 (€4,000,000 less fair value discount of €280,000), included in non-current assets represents  the
final  instalment  of  the Strategic Alliance fee from Dyas B.V. ("Dyas") which falls  due  in  April  2010.  The
instalment received in April 2009 is disclosed within current assets.

The  outstanding loans above are largely due from ATI Oil Plc and relate to the drawn down balance of  a  finance
facility  of  up to £2,000,000 (€1,783,000 net of fair value discount of €316,000) to ATI Oil Plc,  secured  over
certain of ATI's assets. All funds drawn down under the terms of the facility are currently repayable in full  on
31 December 2011 in the event that they are not repaid before that date.

In  addition  a  loan  of  $200,000 (€110,000 net of fair value discount of €34,000) has been  made  to  Northpet
Investment Limited to be used to fund drilling expenditure incurred on the Guyane licence.

10. SHARE CAPITAL


                                                                                           2008              2007
                                                                                          €'000             €'000
-------------------------------------------------------------------------------------------------------------------
Authorised:                                                                                                      
311,316,404 (2007: 311,316,404) ordinary shares of 5p each                               19,648            19,648
-------------------------------------------------------------------------------------------------------------------
                                                                                                                 
Allotted, issued, called up and fully paid:                                                                      
71,142,059 (2007: 70,794,581) ordinary shares of 5p each                                  4,488             4,468
-------------------------------------------------------------------------------------------------------------------
                                                                                                                 
Share  capital  has  been translated to Euro at the rate on 1 July 2008 of 0.79225, the effective  rate  for  the
change in functional currency. Share capital will not be revalued in future accounting periods.


11. POST BALANCE SHEET EVENTS
Recommended Offer for ATI Oil Plc ("ATI")
On  3  April 2009 the Company announced that the Independent Northern Directors and the Independent ATI Directors
had  reached agreement on the terms of a recommended acquisition by members of the Northern Group of  the  entire
issued  and  to be issued share capital of ATI not already owned by Northern. It is intended that the acquisition
will  be  implemented by way of a Court-sanctioned Scheme of Arrangement under Part 26 of the Companies Act  2006
and  a  capital  reduction under section 135 of the Companies Act 1985. It is expected that  the  Proposals  will
become effective on or about 24 June 2009.

Under  the  terms of the proposals, which are subject to certain conditions, the independent scheme  shareholders
will be entitled to receive 1 New Northern Share for every 8 ATI Shares held at the scheme record time and so  in
proportion for any ATI Shares held.


12. APPROVAL BY DIRECTORS
The results for the year ended 31 December 2008 were approved by the Directors on 18 May 2009.


13. ANNUAL REPORT AND ACCOUNTS
The  Annual  Report  and  Accounts will once published be made available in electronic format  on  the  Company's
website,  www.northpet.com,  and  posted to shareholders. Following posting,  the  Annual  Report  will  also  be
available free of charge for a period of not less than one month 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