Operational highlights - 2006:

• Netherlands oil and gas field development projects progressing on a fully funded basis and with key personnel in place;

• Italian activities accelerated through a two licence farmout in the Po Valley and offshore Sicily seismic survey during November. Interests in Italy now cover in excess of 12,000 square kilometres.

Operational highlights - 2007:

• Netherlands attributable production of 260.7 million cubic feet of gas and 216 metric tons of condensate for Q1 2007, up on forecast of 240 mcf;

• Development operations have commenced at Ottoland and Brakel;

• A cost free move into assessing 30 Bcf working volume underground gas storage project at Waalwijk alongside two operators of gas storage facilities in Essent B.V. and Star Energy Group Plc; the licence is believed to also contain substantial upside with tested oil in two zones;

• Partial sale of Netherlands onshore assets to Dyas B.V.;

• Strategic Alliance with Dyas B.V. targeting new assets and corporate acquisitions in selected EU countries and elsewhere.

Financial highlights:

• Increase in net assets at year end to £24.1 million (2005: £6.1 million) following £20 million placing; 

• Cash in hand at year end of £16 million (2005: £1.9 million) plus Standard Bank credit committee approval for project finance and working capital facilities of up to €40 million;

• Attributable revenues with effect from 1 January from Waalwijk and P12 gas fields;

• Profitable sale of Waalwijk underground gas storage rights to Star Energy Group Plc;

• Partial sale at a profit of Netherlands onshore assets to Dyas B.V. realising €18 million cash, already in hand, plus producing and development assets;

• Strategic Alliance entered into with Dyas B.V., with Northern to receive €14m by 30 April 2010, with first payment in hand;

• Cash in hand at 15 May 2007 of £26 million;

• Proposals at Annual General Meeting to transfer balance standing to Share Premium Account (£18.5 million) to distributable reserves and to make market purchases of up to a maximum of 3.5 million of the Company’s own shares.

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For further information please contact:

Northern Petroleum Plc
Derek Musgrove, Managing Director
Chris Foss, Finance Director
Graham Heard, Exploration and Technical Director
Tel: +44(0) 20 7743 6080

Bishopsgate Communications Limited
Maxine Barnes / Fran Read
Tel: +44 (0) 20 7562 3350