ATI Oil Plc
LSE : ATIP

March 13, 2009 09:02 ET

Italian Drilling Commences targeting 332 bcf

                                                                                                      
                                                                       ISIN: GB00B04BP253/GBP/PLUS-exn
                                                                                            13/03/2009
                                                   
                                              
                                              ATI Oil Plc
                                             Martin House
                                             5 Martin Lane
                                                London
                                               EC4R 0DP
                                                   
                                       Tel: +44 (0)20 7469 2940
                                       Fax: +44 (0)20 7469 2901
                                        Email: info@ati-oil.com
                                       Website: www.ati-oil.com

                                              ATI Oil Plc
                                        ("ATI" or "the Company")
                                                   
                             Italian Drilling Commences targeting 332 bcf
                                                   
ATI is pleased to advise shareholders that Northern Petroleum Plc ("Northern") announced earlier today
the commencement of drilling operations at Savio.

The full text of the Northern release is as follows:

"Northern  announces  that  its wholly owned subsidiary, Northern Petroleum  (UK)  Limited,  has  this
morning  commenced  drilling  operations in Italy on the Savio 1x site utilising  the  Hydro  Drilling
International S.p.A. E1200 rig.

The  Savio  1x  well is Northern's first well drilled in Italy as Operator. It is located  in  Emilia-
Romagna,  a  prolific gas producing area of the Po Basin. The prognosis is that after passing  through
the outer edge of the secondary objective, which has a  mean potential entrapment of 110 bcf of gas at
about  3200 metres, the primary reservoir target with estimated mean gas in place of 222 bcf  will  be
encountered at about 3500 metres sub-surface.

Northern's mapping has had the benefit of access to a seismic survey tie into the Eni / Stratic Energy
recently discovered Longanesi gas field, 25 kilometres to the northwest.

As  announced on 24 October 2008, Northern has reduced its business risks and the call upon  its  cash
balances through a farmout agreement with Avobone Italy S.r.l., a member of the Indofin Group. Avobone
will  be  paying  40% of the well costs. Following completion of that agreement the licence  interests
will be:

Northern         80%
Avobone S.r.l.   20%

(A subsidiary of ATI Oil Plc currently has a commercial interest equal to half that of Northern).

Derek Musgrove, Managing Director, stated:

"We  are  increasing our activity level in Italy. This is a milestone in progressing  our  very  large
Italian  project.  The  odds of success have been assessed as reasonable, but nevertheless  it  is  an
exploration well. The structure is of significantly higher than average potential for the region.

Any discovery will benefit from the availability of an extensive infrastructure of gas pipelines  and
gas fired power stations throughout a region which has one of Europe's highest GDPs".

Herein Directors means those of Northern.


Per Gunnar Løge, Chief Executive of ATI, stated:

"We  are  delighted  that  drilling operations have commenced for the first time  on  our  substantial
portfolio of interests in Italy, and look forward to the results with anticipation."


The Directors of the Issuer accept responsibility for this announcement.
                                                   
                                                -Ends-
                                                   
Contact Details:

ATI Oil Plc
Derek Musgrove, Chairman
Per Gunnar Løge, Chief Executive
Chris Foss, Finance Director
Tel: 020 7469 2940

St.Helen's Capital Plc
Barry Hocken/Duncan Vasey
Tel: 020 7628 5582

Hansard Communications
Chris Roberts
Tel: 020 7245 1100

For further information on ATI's Italian assets please see our web site, www.ati-oil.com.

Contact Information

  • ATI Oil plc