Northern Petroleum Plc

May 07, 2009 02:00 ET

Savio 1x Update

Embargoed for release: 0700 on 7 May 2009
                                      Northern Petroleum Plc
                                          Savio 1x Update

Northern Petroleum Plc announces that its wholly owned subsidiary, Northern Petroleum (UK) Limited
("Northern")  which is undertaking a three exploration drilling programme in the Po Valley  region
of  Italy, has this morning suspended drilling operations in Italy on the Savio 1x site. The well,
located  in the prolific gas producing area of Emilia Romagna in the Po Basin, encountered thicker
than  expected  sandstone formations but examination of the electric logs suggests  that  the  gas
contained in them is insufficient to warrant testing.

The  Savio 1x well was Northern's first well drilled in Italy as Operator. The drilling operations
are  expected  to  have been performed at less than the budgeted costs even though  the  well  was
drilled  an extra 280 meters (919 feet) deeper than planned. Planning of the lower risk  wells  on
the Cerasa and Longastrino licences is in progress.

As  announced on 24 October 2008, Northern reduced its business risks and the call upon  its  cash
balances  through  a  farmout agreement with Avobone Italy S.r.l. ("Avobone"),  a  member  of  the
Indofin Group. Avobone paid 40% of the well costs, with the licence interests held as follows:

Northern                  80%
Avobone                   20%

A  subsidiary  of ATI Oil Plc ("ATI") currently has a commercial interest equal to  half  that  of
Northern. ATI is the subject of an Offer by Northern Petroleum Plc announced on 3rd April 2009.

Derek Musgrove, Managing Director, stated:

"The  Savio well was the first of Northern's three well programme in the Po Valley. Wells  on  the
Cerasa  and  Longastrino  licences are at the planning design stage. Drilling  is  also  currently
underway  at  Nieuwendijk, which together with Tiendeveen, forms a two well  exploration  drilling
programme in the Netherlands quite separate to our six oil and gas field development projects.  We
must now look forward to short term success in those wells".

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 30 years experience as
a petroleum geologist.


For further information please contact:

Northern Petroleum Plc                                          Tel: +44 (0) 20 7469 2900
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                                  
Bishopsgate Communications (Press)                              Tel: +44 (0) 20 7562 3350
Nick Rome / Michael Kinirons                                    
Buchanan Communications (Analysts)                              Tel: +44 (0) 20 7466 5000
Tim Thompson / Ben Romney                                       

For  further  information  on  the  Group  and its activities  please  refer  to  the  website  at

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