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.
Northern Petroleum says it has the funds to meet Zaedyus exploration and development costs
Northern Petroleum (LON:NOP) chairman Richard Latham says the exploration and development costs of the Zaedyus field are well within its means.
The first Zaedyus well, which is still being drilled, revealed the world class potential of the prospect, which lies off the coast of Guyane.
It is operated by Tullow and the major shareholders are super-majors Total and Shell.
While Northern only has a 1.25 per cent stake, it is of huge financial importance to the oil and gas junior.
“Although already a success, together with our joint venture partners Tullow, Shell and Total the drilling of the Zaedyus well continues to explore deeper units in the fan systems,” Latham said this morning.
“It is important to emphasise the presence of many other mapped fans within the basin and the licence.
“Our net interest may seem small but is corporately significant considering the very considerable potential target sizes.
“Both exploration and eventual development costs are well within our means as a growing company of our size.”
His comments were made as the group unveiled its interim results.
They charted a strong financial performance as the group, which has production assets in the Netherlands, posted operating profits of 8.5 million euros, up from 3.5 million euros previously.
As at September 28 the company was sitting on 26.5 million euros of cash – enough to fund its exploration and development aspirations.
Northern says it is on target to hit its daily production target of 1,550 to 1,650 barrels a days, having beaten that it comfortably in the first half.
Separately, the oil discovery at Markwells Wood, in the South Downs, has been prepared for oil production testing.
In Italy, preparations for the drilling of the La Tosca prospect in the onshore Po Valley are underway.
Core to its ventures there is the high potential of the proven Durres oil and gas basin in the Southern Adriatic Sea.
Its first seismic surveys in the area are scheduled before the end of 2011.
“The surveys, prior to drilling, will better define not only the Rovesti and Giove oil discoveries, but also the two larger potential structures mapped from much older surveys,” Latham said.
“Our geologists and geophysicists have projected and mapped the presence of fan systems within the basin which the surveys may show to be very material sized drilling targets. Eight prospective petroleum play types have also been projected.”
