Northern Petroleum Plc

December 08, 2009 02:00 ET

Northern completes pipeline and starts new production from gas field

  Embargoed for release: 07.00  8th December  2009

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

Northern  and  its partners are pleased to announce they have started gas production from the  Grolloo  gas
field,  the  first  of  four gas and two oil fields planned for development onshore  The  Netherlands.  The
Grolloo  facilities have been commissioned and first gas sales commenced on December 4th 2009  at  a  daily
rate  of   200,000  normal cubic metres a day (7.4mmscfd).  Development of all four  gas  fields  (Grolloo,
Geesbrug,  Wijk  en  Aalburg  and Brakel) will be completed by early  next  year.  These  will  produce  in
aggregate daily rate of up to 800,000 m³ per day (approx 30 mmscfd) in 2010.

This  gas is the first production following the agreement  between Northern Petroleum Nederland B.V. (NPN),
a wholly owned subsidiary of Northern Petroleum Plc, and Nederlandse Aardolie Maatschappij (NAM) in 2005**.
NPN,  the  operator has a 45% licence interest.  EBN, the Netherlands' state oil company and Dyas hold  40%
and 15% respectively.

Chairman  of  the Executive Board of EBN, Jan Dirk Bokhoven said           "I am delighted with  Northern's
first  successful development in the Netherlands. It shows there is still sufficient gas potential  in  the
Netherlands and it is another step towards our goal of producing 30 bcm from small fields by 2030."

Peter Veenhof, Managing Director Dyas also commented           "Dyas congratulates Northern Petroleum  with
this  important  milestone  of reaching first gas on the Grolloo field. This  is  an  important  step  into
unlocking reserves from similar small gas pockets in the Netherlands that were previously considered not to
be economically attractive."

Derek  Musgrove,  Managing Director, Northern added          "We have achieved our first objective  in  our
plans to place four gas and two oil discoveries on stream in The Netherlands.  Naturally, with shareholders
I  look  forward eagerly for Geesbrug, Wijk en Aalburg and Brakel to be contributing to production revenues
in  the  next few months - weeks in the case of Geesbrug.  At the moment we take joy at this accomplishment
which  has  been long awaited. We have had tremendous support from NAM and our partners EBN, and  Dyas  and
would like to thank all those who have worked closely with us to reach this milestone.

"With  this  new  production we have demonstrated our operational and organisational  strengths,  technical
capabilities and ecologically sensitive approach.  We will now work to increase production from  our  other
five  fields  and expand further from this base.  The profits from these six wells will assist Northern  in
driving  both our exploration activities in Italy and re-drilling of three old discoveries in  the  Utrecht
Licence even faster."

Further information

The  Grolloo  field  alone is forecast to deliver initial revenues of approximately Euro20  million  (Euro9
million  net  to NPN) based on an assumed gas price of Euro0.20 per Nm³.  The existing design  facility  is
capable of considerably higher daily production rates. The decision on an increase to production rates will
be made once flow rates have stabilised and once several months of production experience has been gained.

Gas  from Grolloo is being delivered via a dedicated pipeline to the NAM operated Vries facilities and then
on  to the Westerveld process facilities. Geesbrug will be the next field to be brought on-stream employing
a similar scheme of development.

** See press release 14 June 2005

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
Petroleum Plc, 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

Sophie Hull, Head of Corporate Communications

Brokers to the Company

Jefferies International                                   Tel: +44 (0) 20 7029 8000

Chris Snoxall / Schuyler Evans

Astaire Securities                                        Tel: +44 (0) 20 7448 4400

Jerry Keen / Toby Gibbs

Notes to Editors:

Northern  is  an  AIM  quoted oil and gas production, development, exploration and  asset  trading  company
focused  on  petroleum producing areas of low political risk in Europe. The Company strategy is  to  obtain
significant  and  concentrated  licence positions then add value at reasonable  risk  utilising  new  ideas
together  with new drilling, seismic, completion, field development and computer technologies to  establish
economic oil and gas production.

The  Company's activities are concentrated in three countries (The Netherlands, Italy and England) with the
risk  spread over more than 50 projects in 12 petroleum systems.  Following the recent acquisition  of  ATI
Oil  Plc,  Northern holds over 103 million barrels of reported Proven & Probable Reserves. It has interests
in 5 producing fields, both onshore and offshore, one of which it manages.

The  development  of six onshore oil and gas fields is being progressed in The Netherlands  under  Northern
management Northern Petroleum Nederland B.V. with Dyas B.V., EBN, the Netherlands' state oil company. 

Northern  currently  manages the largest licensed exploration area in Italy, over 15,000km²,  predominantly
offshore,  but  includes six onshore permits in the Po Valley gas and oil province  in  the  north  of  the

UK  production  comes from a 10% interest in the Horndean oil field and a 5% interest in the  Avington  oil
field,  both in West Sussex and Hampshire respectively. It also has planning consents to drill in the  near
future  an eastward extension of the Horndean oil field and an exploration well at Havant. Northern  has  a
50% interest in these ventures.

For further information on Northern visit


Contact Information

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