Northern is pleased to advise shareholders that the High Court of Justice, Chancery Division confirmed the cancellation of both the Deferred Shares and the amount standing to the credit of the share premium account of the Company as at 31 December 2004, being £9,332,685. The registration date at Companies House of the Order of Court has today been confirmed to be 31 October 2005, at which date an undistributable reserve is required to be created to protect the creditors of the Company as at the registration date. This reserve is reduced upon settlement of those creditors. These cancellations were approved by shareholders following the passing of Special Resolutions at the Annual General Meeting, as reported on 5 August.

The effect of the reorganisation on the capital structure of the Group once all creditors of the Company, as at the effective date, have been paid is demonstrated by the proforma 30 June 2005 capital and reserves summary below:

For further details please contact:

Derek Musgrove
Northern Petroleum Plc
020 7743 6080

Chris Roberts/Ben Simons
Hansard Communications
020 7245 1100