oilbarrel.com
24 April 2007
Northern Petroleum Impresses With New Dutch Production Deal
Shares in Northern Petroleum jumped 20 pence on Monday as the AIM-quoted company released details of yet another portfolio-enhancing deal in the Netherlands. It is the second gas production purchase for Northern in less than two months. The company made its debut in the country just two years ago, a move which now looks increasingly astute.
Yesterday Northern announced it had agreed to sell a 25 per cent stake in six oil and gas discoveries and three exploration wells in the Netherlands to Dyas, a Dutch oil and gas company, for €18 million in cash. Northern will also receive a 23.6 per cent interest in a producing gas field in block P12, a 30.4 per cent interest in two gas discoveries in the Zuid Friesland permit and retain a 5 per cent royalty over 6 million barrels in the Papekop oilfield and 4.6 million barrels in the Ottoland field. Shares in the company gained more than 16 per cent to close at 143.5 pence...
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t1ps.com
31 December 2006
Northern Petroleum* (NOP) at 103.55p
I expect corporate action on all fronts in 2007 which prove up the value of Northern. Its UK assets could well be sold and are worth at least £5-10 million. Add in cash of £20 million and the value of its Italian assets as implied by the Plus markets price of ATI (i.e. £24 million) and you have a valuation of £49 million to £54 million. The current market valuation of Northern is £73 million. So the company's Dutch assets are being valued at £20-25 million when independent experts reports value them at 4 or 5 times as much and recent corporate deals in the Netherlands imply an even greater valuation. There will be drilling in Holland and Italy and in the UK and possibly corporate action in all three areas as well. This stock is not worth a penny less than 200p.
*Northern Petroleum is a corporate client of Bishopsgate Communications which is owned by RSH the owner of t1ps.com Ltd.
t1ps.com
19 December 2006
Northern Petroleum* - Share Price Comment
I am asked on a daily basis what is going on at Northern Petroleum* (NOP) in that the shares are off by 20% over the past month and seem just to drift each day. The answer is that nothing is amiss. Everything is on track and my valuation of 200p plus remains unchanged. Treat a 101p share price as a buying opportunity. And, yes, I have made enquiries with the company before writing this. My suspicion is that there are some idiot fund managers out there who are overweight in resource stocks having hoovered up a bucketful of low grade IPOs over the past 2 years. Those low grade IPOs are illiquid stocks. So to reduce their sector weighting they are trimming holdings of liquid resource plays. Inevitably this means they are actually selling good investments not bad. It is monumental stupidity but that is not your problem. The fundamentals are unchanged. Buy.
*Northern Petroleum is a corporate client of Bishopsgate Communications which is owned by RSH the owner of t1ps.com Ltd.
t1ps.com
28 November 2006
Northern Petroleum* - Sicily project update
This morning's seismic survey details from the offshore Sicily prospects certainly
enhances the potential value of the projects. A seismic program has now been
completed, spreading across a 1500km 2D area across the offshore Sicily blocks
(C.R146.NP, C.R147.NP, G.R17.NP, G.R18.NP and G.R19.NP) operated by
Northern Petroleum* (NOP) . This program fulfils all seismic commitments on these
permits. The completion of the survey ahead of schedule is obviously very pleasing,
and I expect it will come in under budget to boot.
Musgrove and his cronies have said that the early results look very promising, and
crucially appear to confirm the predicted potential of these licences. The data will now
be used to demonstrate the prospectivity of these permits at various UK and
international industry prospect fairs in the next three months, with a view to farming
out at an early date and with intent to drill in 2007 and 2008. Northern has a 50%
stake in these blocks with the other 50% owned by ATI, the Ofex listed company in
which Northern has a 38% stake. At 108.5p the stance, at up to 142p, remains "buy".
* ATI is a corporate client of GE&CR which is owned by t1ps.com Ltd.
t1ps.com
23 August 2006
Northern Petroleum - Provision of Finance Facility
Apologies for this slightly tardy update. Northern (NOP) has announces that it has signed a Heads of Agreement with ATI Oil such that Northern shall provide a finance facility of up to £1,750,000 secured over certain of ATI's assets. All funds drawn down under the terms of the facility will be repayable to Northern in full on 30th November next year. In return for providing this facility, Northern, in addition to receiving fees and interest, has been granted options to farm into, and thereby earn an additional interest in up to seven offshore blocks in which ATI has a 50% interest (Northern already has a 50% stake in those blocks). These options expire three months after the cancellation of the facility by either party.
This is great news for ATI, in which Northern has a 38% interest. The facility provides ATI with the additional working capital and sufficient funds to further exploit the significant potential of its Italian oil and gas assets. The facility will enable an offshore seismic survey to commence later this month. This survey is essential to advance ATI's exploration efforts in a timely manner and enhance the value of Northern's joint interest in five licences. ATI now has the ammunition to advance its joint projects with Northern in Italy where there are significant opportunities to enhance the value of its assets. At 119p the stance is "buy" at up to 146p.
* ATI is a corporate client of GE&CR which is owned by t1ps.com Ltd.
oilbarrel.com
2 October 2006
Interim Results Reveal Progress Being Made By Northern Petroleum...
... October will see the drilling of Northern Petroleum’s first well on its promising asset base in the Netherlands. The Steenwijk-1 exploration well will target a 150-240 billion cubic feet gas prospect. The Steenwijk prospect lies near the Eesween and Wanneperveen gas fields. In the meantime the company, which on Friday posted a reduced loss of £941,000 for the first six months of the year, is accelerating work on its development projects in the country, with drilling on the Ottoland oilfield brought forward to early 2007 (Northern originally envisaged this work taking place in late 2008). The London-listed company has the funds to finance these projects, which have the potential to move the company up a gear, as it has cash in hand of more than £20 million plus project finance and working capital facilities of up to €40 million. Northern is also making tracks in Italy. This winter it plans a 1,500 km seismic survey over its licences to the west of Sicily, where the company hopes to delineate prospects and find partners to share the costs and risks of drilling. The first offshore well is planned for licence C.R146.NP, where Northern has identified a look-alike of the large Vega oilfield. Other wells on the horizon include an appraisal to the east of the Horndean oilfield in the South Weald Basin of the UK plus the drilling of the supersized Matamata structure offshore Guyane in South America, which new operator Tullow Oil plans to drill in the third quarter of 2007...
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t1ps.com
23 August 2006
News from Northern Petroleum (NOP) this morning was the news I had been expecting for quite some time. Wholly owned subsidiaries of Northern Petroleum and OFEX traded ATI Oil* (in which Northern has a 38% stake), have concluded a farmout agreement with Stratic Energy Corporation. The deal covers 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 retaining operatorship.
I have detailed the potential prospects of both the Longastrino and Savio licences in previous updates so will add nothing new here, suffice to say that early signs are very encouraging. The 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. Clearly today's news is very welcome and I am encouraged that Stratic will partner two of the key Italian licences. The directors' past experience of success in Italy, with Enterprise Oil, which was later taken over by Shell, is a useful enhancement to the combined efforts. Northern remains an asset play. Indeed, a conservative valuation of 200p per share continues to make the shares a "buy" at 133p and at up to 145p.
www.t1ps.com
*ATI is a corporate client of GE&CR which is owned by t1ps.com Ltd
oilbarrel.com
12 June 2006
...investors have long been of the view that the package of Dutch assets bought last summer from NAM was the best prospect in the company’s portfolio. This view was enhanced by a major reserves upgrade in March 2006 of the Andel, Brakel, Geesbrug, Grolloo and Ottoland fields. The news that Papekop, discovered in 1986 by NAM, is also larger than first thought will only strengthen this view.
Investors are keen to see the AIM-quoted firm, backed by a recent share placing which raised £20 million and a project finance facility of up to €40 million, get after the potential in the Netherlands. It plans to develop the Andel, Geesbrug, Brakel and Grolloo fields as gas fields with the gas being converted into electric power on site. The Papekop and Ottoland discoveries will be developed as oilfields with the associated gas converted to electric power on site. Papekop will require the drilling of a sidetrack but the other fields can be produced initially from the existing wells.
The company hopes to achieve first production in the first quarter of 2007...
www.oilbarrel.com
oilbarrel.com
27 March 2006
...RPS credited the Andel, Brakel, Geesbrug, Grolloo and Ottoland fields with total proved reserve base of 6.3 million barrels of oil and 210 billion cubic feet of gas. The 2P (proved and probable) number is 11.6 million barrels and almost 365 bcf with the proved, probable and possible reserves standing at 19 million barrels and almost 545 bcf of gas. This is a significant upgrade: Northern had previously attributed the fields with a 2P number of 85 bcf of gas and 8 million barrels of oil. What’s more there’s more to come: RPS’s remit didn’t cover the Papekop oilfield, discovered in 1986 by NAM and for which Northern has now applied for a production licence. Papekop is thought to hold proven plus probable recoverable reserves of more than 20 bcf and 10 million barrels of oil...
www.oilbarrel.com
UK-Analyst.com
24 March 2006
...Northern Petroleum shares zoomed ahead by 46.5p to 141p after the company upped its oil reserves. Northern said that proved and probable oil reserves estimates for 5 of its fields in the Netherlands had been upgraded to 11.6 million stock tank barrels from 8 million barrels. The 2P gas reserves were also bumped up to 364.9 billion standard cubic feet from 85 billion. The upgrade arrived on the back of better technology, which in turn aided a better understanding, as recent rises in commodity prices improved the economics, allowing more reserves to be extracted profitably. Tom Winnifrith of of top share tipping site t1ps.com, who first tipped the shares at the equivalent of 13.75p, reckons that 200p is now on the cards ...
www.uk-analyst.com
Money AM
24 March 2006
...Northern Petroleum said proved and probable oil reserves estimates for five of its fields in the Netherlands have been upgraded to 11.6 million stock tank barrels from 8 million. ...
UK-Analyst.com
14 March 2006
...The recent share price progress in Northern Petroleum continued after the company announced a 40-million-euro finance facility had been agreed with Standard Bank. The facility has been agreed to fund Northern's subsidiary NP Netherlands. It said 35 million euro will be made available to fund the cost, including a contingency for overruns, of bringing the unit's 6 onshore oil and gas properties in the Netherlands into production. A further 5 million euro will be made available once output starts. Shares in Northern rocketed to more than 100p early in the session, although profit takers wiped out much of the earlier gains. The shares finished 1p higher at 96p. The shares were first tipped at the equivalent of 13.75p by Tom Winnifrith of tips.com, who now rates the shares as a "strong hold." ...
www.uk-analyst.com
UK-Analyst.com
13 March 2006
...Northern Petroleum shares rose 13p to 95p after the group said it had been informed by Star Energy, the operator of the Avington-3 appraisal well in which Northern Petroleum holds a 5% interest, that drilling has reached Target Depth. The shares were first tipped at the equivalent of 13.75p by Tom Winnifrith of tips.com, who rated the shares as a "strong hold."...
www.uk-analyst.com
oilbarrel.com
8 March 2006
...Northern Petroleum spin-off ATI Oil [is] busy in Italy ... The Med has seen little activity in recent decades but that appears to be changing: new seismic and drilling techniques could unlock previously neglected deposits while high oil prices and easy access to energy-hungry markets make this an attractive place to operate. The onshore opportunities, particularly in proven plays such as Italy’s Po Valley or Algeria’s prolific Berkine Basin, can hold projects with company-making potential...
www.oilbarrel.com
UK-Analyst.com
6 March 2006
"...Shares in Northern Petroleum rose 4p to 72.5p after Investec said that it believed the shares offered a clear value opportunity relative to its 211p/share total net asset value. The broker said that disappointment in the group's UK drilling had to an extent masked a deep well of value lying within its Dutch assets the group awaiting formal receipt of six production licences. The shares were rated a "buy."..."
www.uk-analyst.com
oilbarrel.com
21 February 2006
"...Northern Petroleum has long been a fan of Italy, a country with the fourth largest oil and gas reserves in the EU and an industrialized, energy-hungry economy. London-listed Northern, which uses modern seismic and drilling techniques to revisit neglected acreage, has now added to its holdings there with the preliminary award of six offshore licences, including existing oil and gas discoveries, in the Sicily Channel, Southern Adriatic and offshore Calabria. The full award of the licences will follow the submission and approval of the necessary environmental impact studies..."
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UK-Analyst.com
20 January 2006
"..Ofex-listed ATI Oil revealed that it had been granted further licences in Italy in its joint venture with Aim-listed Northern Petroleum. Note Northern also owns 38% of ATI. ATI announced the final decree of the Longastrino licence in the Po Valley and the preliminary award of a further 3 licences in which Northern also has a 50% interest - Gattinara in the Western Po Valley, and offshore west of Sicily, d347C.R-.NP and d21G.R-.NP. ATI shares rose 0.5p to 9p and Northern Petroleum stock added 3p to 62.5p..."
www.uk-analyst.com
UK-Analyst.com
3 January 2006
"...Investors rushed into a number of newspaper "tips for 2006," sending some stock sharply higher. Some of the major winners were Northern Petroleum, which saw its shares rise 8p to 66.5p after being tipped by the Mail on Sunday..."
www.uk-analyst.com
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