Northern announces that the first phase of testing on Ottoland has now been completed.  Encouragingly the conclusion from the data is that the flow rates of up to 1447 bopd and 0.6 mmscf/d gas have been established from less than one half of the section interpreted as net pay in the 405 metre horizontal part of the well section.

A work-over of the well will be undertaken to further perforate the reservoir unit and a second phase of testing will be conducted to establish the full potential of the whole of the horizontal well thereby allowing the design of optimum production facilities.  These activities will require a workover rig and the availability of sufficient tank facilities during the test periods.

It is likely to be carried out in the near future in conjunction with other planned activities at Brakel or Papekop.

The applications and permits to allow continuous production from Ottoland will now be progressed without the need to await these further tests.

Northern Petroleum Nederland B.V. (“NPN”) currently holds an 85% interest in the Ottoland field, the other partner in the license is Dyas B.V., a 100% subsidiary of the privately owned SHV Holdings NV. The NPN interest will reduce to 45% if the Minister of Economic Affairs designates EBN B.V. (“EBN”), a State owned company, as a 40% participant in the field in return for a pro-rata share of sunk costs and a pro-rata share of all future costs of the joint ventures.

Derek Musgrove, Managing Director of Northern, stated:

“We have been pleased by the reservoir quality in this well. The work-over is needed to increase the well productivity so important in firming up our production and marketing plans.”

In accordance with the AIM Rules – Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and signed off by the Exploration and Technical Director of Northern, Mr Graham Heard CGeol FGS, who has over 30 years experience as a petroleum geologist.

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

Investec
Michael Ansell / Paul Brett
Tel: +44 (0)20 7597 5000

Panmure Gordon & Co
Katherine Roe / Ashton Clanfield
Tel: +44 (0)20 7459 3600

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