23 August 2006
Farmout Agreement
Wholly owned subsidiaries of Northern Petroleum Plc and ATI Oil Plc (“ATI”) have concluded a farmout agreement with Stratic Energy Corporation (“Stratic”) covering the Longastrino and Savio licences in the Po Basin in Italy, subject to the usual governmental and regulatory approvals.
Under the terms of the agreement, Stratic has committed to fund the acquisition of seismic data together with related technical interpretation work up to a maximum of Euro 1 million in exchange for the options to drill a single well on each permit to earn a 50% working interest in both permits. Stratic’s total commitment, if the options on both permits are exercised, is Euro 9.05 million. At this time, both Northern Petroleum and ATI Oil, who currently each hold 50% of the licences, will have their interest decreased by 25% respectively, with Northern Petroleum (UK) Ltd retaining operatorship.
The Longastrino and Savio licences are located in the prolific Po Valley area near the eastern coast of northern Italy, adjacent to Grove Energy’s San Marco acreage upon which the Abbadesse gas discovery has recently been made. Furthermore, in 2002, the Agosta gas field was discovered by ENI on a licence adjacent to Longastrino. Nine stratigraphic leads in the acreage have been identified and further seismic data over the next six months will be acquired to enable these leads to be firmed up for drilling in 2007.
Derek Musgrove, Managing Director or Northern, commented,
“We are delighted to welcome Stratic as partners to two of our Italian licences. The Directors’ past experience of success in Italy, with Enterprise Oil, which was taken over by Shell, is certain to make a valuable contribution to our combined efforts.”
For further information please contact:
Northern Petroleum Plc
Derek Musgrove, Managing Director
Graham Heard, Exploration Director
Tel: +44(0) 20 7743 6080
Investec
Michael Ansell
Tel: +44(0)20 7597 5000
Panmure Gordon & Co
Katherine Roe
Tel: +44(0)20 7459 3600
Hansard Communications
Chris Roberts
Ben Simons
Tel. +44(0) 20 7245 1100
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