Northern Petroleum is pleased to announce that its wholly owned subsidiary, Northern Petroleum (GB) Limited, has entered into an agreement whereby Hereward Ventures plc will acquire a ten per cent. interest in the onshore oil and gas exploration licence PEDL 089 Area (A) covering parts of Hampshire and the Isle of Wight.

The interest in the licence by Hereward will be earned by the payment of thirty per cent. of all costs as incurred by Northern to the completion of an earn-in well. In addition, a payment of £45,000 to Northern will be made as a contribution to past expenses which have been invested in well log analysis, seismic interpretation and mapping of prospects.

Northern has identified prospects in both the Triassic Sherwood Sandstone formation and Jurassic Great Oolite formation, which will be drilled and tested in one well.

Derek Musgrove, Managing Director, commented,

“We are delighted that Hereward Ventures Plc has identified the strong potential that lies in this onshore licence in the south of England and in doing so endorses Northern’s analysis and interpretation of the potential of this licence.

Northern has taken the necessary actions to drill these substantial prospects as soon as practicable.”

For further information please contact:

Derek Musgrove, Managing Director
Northern Petroleum Plc, tel. 020 7743 6080.

Chris Roberts / Ben Simons
Hansard Communications, tel. 020 7245 1100