
Encouraging Gas Testing Operations
Northern Petroleum Plc announces that its wholly owned subsidiary, Northern Petroleum Nederland B.V. has been flaring gas as part of a programme of well remediation work-overs followed by hydraulic fracturing of the reservoir formation to confirm and possibly improve gas production flow rates. This has been reported in The Netherlands press and elsewhere.
The flares look impressive to onlookers. Coming to a reliable fully informed opinion takes a little time. The wells are first flowed to clean up residual liquids and solids from the fracture operations then flow test measurements taken at different pressures. The results are then analysed to provide better gas and condensate production rate forecasts for confirmation of development design and sales contracts.
The on-site works and flow tests have been completed at Wijk en Aalburg and at Brakel, where a second flare stack was installed to take the volume and reduce noise and heat radiation. Down-hole works have also been conducted at Grolloo to prepare the well for hydraulic fracturing operations.
Northern will announce a summary of the Wijk en Aalburg and Brakel results when the analyses are complete in order to avoid over optimistic interpretation of any flow rates from selected parts of the test period.
In early 2009 this five field programme of work will move on to the Geesbrug and Ottoland fields.
The programme is being undertaken to strengthen confidence in production forecasts prior to negotiating gas sales contracts. Production forecasts will only be increased once the required confidence levels are established.
Subject to finalising the EBN participation in all the licences, the interests in all five fields are:
| Northern Petroleum Nederland, (Operator) | 45% |
| EBN | 40% |
| Dyas | 15% |
Derek Musgrove, Managing Director, Northern, stated:
“We are pleased to be moving ahead now with the five fields with existing production wells and must look forward to the test results with a degree of optimism.
The process of obtaining permissions from numerous authorities has required patience from management and shareholders alike. It is not over, but it is satisfying to be conducting operations again.
We are endeavouring to be as informative and helpful as possible to our immediate neighbours in The Netherlands and will take into account any concerns and difficulties our operations might cause. This is important as we intend to be a good neighbour. We are grateful for their intelligent understanding of our operations.”
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
Tel: +44 (0) 20 7469 2900
Derek Musgrove, Managing Director
Chris Foss, Finance Director
Graham Heard, Exploration & Technical Director
Investec
Tel: +44 (0) 20 7597 5000
Michael Ansell / Patrick Robb
Blue Oar
Tel: +44 (0) 20 7448 4400
Jerry Keen / Toby Gibbs
Bishopsgate Communications (Press)
Tel: +44 (0) 20 7562 3350
Nick Rome / Maxine Barnes
Buchanan Communications (Analysts)
Tel: +44 (0) 20 7466 5000
Tim Thompson / Ben Romney