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Market: AIM
Sector: Energy
EPIC: NOP
Latest Price: 74.75p  (-0.33% Descending)
52-week High: 140.25p
52-week Low: 61.00p
Market Cap: 69.90M
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Northern Petroleum
www.northpet.com

Northern Petroleum Plc is an oil and gas exploration, development and production company focused on the European Union and nearby areas. The Company is an operator of both onshore and offshore projects including a producing oilfield and boasts a management and technical team of the highest quality.

Full Northern Petroleum profile here
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Northern Petroleum to acquire 44.34% interest in 107 Bcf gas fields in Netherlands

23rd Mar 2010, 2:42 pm Northern Petroleum to acquire 44.34% interest in 107 Bcf gas fields in Netherlands

Northern Petroleum’s (AIM: NOP) Dutch subsidiary Northern Petroleum Nederland (NPN) will acquire the respective interests of Nederlandse Aardolie Maatschappij (NAM) and Dyas and assume operatorship of the Zuid-Friesland III production license, which has been granted to NAM and Dyas along with Total (NYSE: TOT) and Petro-Canada.

The 25 year license covers 104.6 sq km (square kilometres) in the province of Friesland in the Netherlands and includes two gas fields, Oppenhuizen and Woudsend. The Oppenhuizen-1 well drilled in 1972 discovered gas in the Zechstein 2 carbonate and tested initial rates of 15 mmscf/d (million standard cubic feet per day) and is currently suspended. The Woudsend-1 well was drilled in 1987 and discovered gas in the Zechstein carbonate, but was never tested.

The unaudited estimate of the Gas Initially in Place (GIIP) of the two fields is a combined 107 Bscf (billion standard cubic feet) with expected recovery factors of the order of 60%.

After 40% participation by Dutch state owned Energie Beheer Nederland B.V. (EBN), NPN's working interest is 44.34%. The transfers are subject to the usual government consent.

NPN will develop each field according to previously signed separate agreements and  will receive a 100% payback of its costs from production cash flow plus an uplift. Following payback, operating cash flow will be split between NPN, NAM and Dyas.

“Northern is delighted with the announcement of the award of this licence with the acquisition of two further field development projects. This represents the results of much ground work by Northern and is a very welcome increase to Northern's growth plans for the onshore Netherlands adding to the two gas fields placed on production in 2009,and the current developments of the Brakel, Ottoland, Papekop and Wijk and Aalburg fields. It is an endorsement of our strategy,” said Managing Director of Northern Petroleum Derek Musgrove.

NAM is a 50/50 JV (joint venture) between Royal Dutch Shell (LSE: RDSB) and ExxonMobil (NYSE: XOM).

Broker Astaire Securities issued a note following the update, saying Oppenhuizen and Woudsend add two further gas developments to Northern's Dutch portfolio, helping to consolidate the company's position as an operator in the Netherlands where production is already ramping up. 

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