Independent South of England Asset Evaluation
VALUATION ATTRIBUTES £51.6 MILLION TO NORTHERN PETROLEUM PROVEN AND PROBABLE RESERVES IN ISLE OF WIGHT, HAMPSHIRE AND WEST SUSSEX
Northern Petroleum Plc (“Northern”) announces that it has received an independent evaluation of oil and gas properties in the Isle of Wight, Hampshire and West Sussex, held under licence by the Northern Group of companies, from Exploration Consultants Limited (“ECL”).
The ECL report makes the judgement that previous drilling and testing of wells in the area has proven the existence of three oilfields to which reserves, net to Northern, have been attributed in the proven category as defined by The Society of Petroleum Engineers and compliant with the UK Listing Authority guidelines. A further seven discovered oilfields have been attributed reserves in the probable and possible categories. All fields have undergone a full reserves evaluation using standard industry techniques in the proven, probable and possible categories as defined by The Society of Petroleum Engineers and are summarised below.
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Net Northern Reserves (Million barrels) |
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Reserve Category |
Wessex Channel | Weald | Total |
| Proven | 0 | 1.27 | 1.27 |
| Proven + Probable | 6.64 | 3.6 | 10.24 |
| Proven + Probable + Possible | 28.7 | 26.5 | 55.2 |
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Net Northern NPV10* (£ Millions) |
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Reserve Category |
Wessex Channel | Weald | Total |
| Proven | 0 | 4.65 | 4.65 |
| Proven + Probable | 35.7 | 15.9 | 51.6 |
| Proven + Probable + Possible | 151.2 | 122.2 | 273.4 |
| *calculated using a discount rate of 10% |
In addition, ECL has evaluated the prospective reserves (i.e. for defined exploration prospects) and the contingent reserves applicable in the event of higher recovery factors in oolite reservoirs, to be achieved mainly from the successful implementation of multi-lateral drilling techniques. In part this may be dependent on application of new technology.
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Net Northern Additional Reserves (Million barrels) |
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Reserve Category |
Wessex Channel | Weald | Total |
| Contingent | 9.7 | 5.5 | 15.2 |
| Prospective | 53.3 | 2.9 | 56.2 |
The value attributed to the combined contingent reserves on an unrisked basis at NPV10 is £83million. On a risked and full cost development scenario basis the prospective resources have been assigned a significant value.
The report does not cover all the leads and prospects that Northern is working on, nor does its scope encompass Licences PEDL 151, PEDL 152, PEDL 089 (B), P1153 (Blocks 98/7b & 98/8a) in the Wessex Channel Basin, PEDL 154 in the Weald Basin and two licences held in Kent as work is currently in progress.
Derek Musgrove, Managing Director of Northern, stated, “I believe that this is the first time that we have been able to demonstrate the value resulting from our extensive work and holdings in these two basins in the South of England. I am delighted that an independent report so clearly demonstrates the under appreciation of our assets in this region. Furthermore, this should not distract from Northern’s other assets in Italy, Spain, and Guyane.
Our drilling programme is shortly to commence with two wells on the Isle of Wight in the Wessex-Channel Basin and we will move to obtain drilling locations and planning consents in the Weald Basin once the May 5th 2005 election activities have passed.”
The valuation reports are available to download in PDF format:
- Weald Basin (315K)
- Isle of Wight (267K)
For further information please contact:
Derek Musgrove, Managing Director
Northern Petroleum
Tel. 020 7743 6080
Ben Simons/Chris Roberts
Hansard Communications
Tel. 020 7245 1100