Northern Petroleum Plc. announces that its wholly owned subsidiary, Northern Petroleum (UK) Limited (“Northern”) has succeeded in putting all pre-drilling approvals in place, signed a drilling rig contract and commenced site construction works. This is the start of a more active period of operational activities in Italy.

The Savio-1X well will be Northern’s first well drilled in Italy under company management. It is located in the Regione of Emilia-Romagna in the main onshore area of the Po Basin biogenic gas play. The prognosis is that the well will reach the primary target at 3200metres sub-surface with estimated mean gas in place of 222 bcf. On the drill path to the primary target it is anticipated to pass through a secondary in sub-optimum position which has been estimated to have the mean potential of entrapment of 110 bcf of gas. This is a combined mean un-risked Prospective resource of 332 bcf. as previously announced.

Northern’s mapping has had the benefit of access to a seismic survey tie into the Stratic Energy/Eni recently discovered gas field at Longanesi.

As announced on 24th October 2008, for the onshore Savio licence Northern has reduced its business risks and call upon cash balances through a farmout agreement with Avobone Italy S.r.l, a member of the Indofin Group. Avobone will be paying 40% of the well costs. Following completion of that agreement the licence interests will be:

(ATI Oil Plc has a commercial interest equal to half that of Northern).

Derek Musgrove, Managing Director, Northern Petroleum Plc. stated:

“We are increasing our activity level in Italy. This is a milestone in progressing our very large Italian project. The odds of success have been assessed as reasonable, but nevertheless it is an exploration well. The structure is of higher than average potential for the region.

“Any discovery will benefit from the availability of an extensive infrastructure of gas pipelines and gas fired power stations throughout the region which has one of Europe’s highest GDPs”.

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

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