Northern Petroleum Plc

March 12, 2009 08:30 ET

Netherlands Preproduction Activity Update

Embargoed for release: 1230 on 12 March 2009
                                        Northern Petroleum Plc
                                      ("Northern" or "the Group")
                               Netherlands Preproduction Activity Update
Northern  announces that its wholly owned subsidiary, Northern Petroleum Nederland  B.V.  ("NPN")  has
commenced  the  second  phase  of downhole work programmes to prepare  the  five  existing  wells  for
production. This phase will involve operations at the Ottoland oil field and the Geesbrug and  Grolloo
gas  fields.  During  the  same operations the wells will undergo programmes  of  reservoir  formation
stimulation through hydraulic fraccing. This has been highly successful in the basin and in the  first
phase  of  the  programme  at the Brakel and Wijk en Aalburg gas fields. NPN  believes  it  should  be
possible  to  increase  initial production rates beyond the 4670 barrel of  oil  equivalent  currently

Conceptual  fracture design modelling on the wells was conducted by specialists, Fracture Technologies
Limited,  who  successfully designed the fracture programmes on the Waalwijk wells prior  to  Northern
acquiring the field. The detailed design and operations are being carried out by Pinnacle Technologies
Delft and Schlumberger Oilfield Services.

For  the  Brakel and Wijk en Aalburg gas field developments two mechanical refrigeration gas treatment
plants  are being fabricated by Toromont Energy Systems of Calgary and contracts have been placed  for
the construction and tie in of the gas to the distribution grid.

In  accordance  with  the  AIM  Rules - Guidance for Mining and Oil & Gas Companies,  the  information
contained  in  this  announcement has been reviewed and signed off by the  Exploration  and  Technical
Director  of  Northern,  Mr Graham Heard CGeol FGS, who has over 30 years experience  as  a  petroleum

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                                                   Tel: +44 (0) 20 7597 5000
Michael Ansell / Patrick Robb

Blue Oar                                                   Tel: +44 (0) 20 7448 4400
Jerry Keen / Toby Gibbs

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

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

Notes to Editors:

Northern  Petroleum  has  recoverable Proven and Probable reserves of  76.5  million  barrels  of  oil

Following a deal with the joint Shell and ExxonMobil subsidiary, NAM, Northern became the Netherland's
second  largest  onshore  oil  company  in  terms of oil and  gas  reserves,  with  45.5  million  boe
recoverable.  It  is  currently producing gas at Waalwijk and the offshore  P12  fields.  The  planned
development  of  six  onshore  oil  and  gas  fields  is  being  progressed  through  the  Netherlands
authorisation  and  planning processes. Partners in these projects include Dyas  B.V.,  EBN  and  NAM.
Northern recently sold its interest in the Waalwijk Underground Gas Storage project application for an
overall consideration of £10 million.

Northern  manages  the  largest  licensed exploration area in Italy, over  13,000  km²,  predominantly
offshore but includes seven licences in the Po Valley oil and gas province in the north of the country
where  the  drilling of the Savio 222 bcf gas prospect is being progressed. Through  its  holdings  in
licences  in the southern Adriatic covering the Rovesti and Giove oil discoveries it has net  Probable
oil reserves independently assessed at 26.6 million barrels recoverable. It has recently signed a deal
with  Shell  Italia refunding Northern's past costs and providing for Shell Italia to  fund  the  next
phases  of exploration of a potential new oil province in the extension of the Apennine thrust  system
offshore Sicily.

In  the UK the Group is also a significant holder of licences in the south of England where it  has  a
10%  interest  in  the production from the Horndean oil field and a 5% interest in  the  Avington  oil
field. In 2009 it is planning to drill an eastward extension of the Horndean oil field. Northern has a
50% interest in the venture.

Further information on Northern is available at

Contact Information

  • Northern Petroleum Plc