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...
www.oilbarrel.com
UK-Analyst.com
23 April 2007
Shares in Northern Petroleum* (NOP) surged by 20p to 143.5p after selling 25% of its Dutch operations for 40 million Euro. Analysts at Investec reckon that this deal underpins a valuation of 217p per Northern Share. Small Cap Shares magazine tipped Northern just 2 months ago and its readers are already sitting on a gain of 59%.
*This company is a corporate client of RSH, the ultimate owner of UK-Analyst.com
Northern Makes Early Profit On The Waalwijk Deal As Providence And EnCore Also Join Forces With Star Energy On Gas Storage Opportunities
3 April 2007
Last week we reported how Northern Petroleum had acquired a gas field and gas storage opportunities in the Netherlands for €450,000. This week, to the delight of shareholders, the AIM-quoted firm revealed it had already made a profit on the assets, selling a 50 per cent interest in the project to Star Energy for €970,000.
What’s more Star, which has positioned itself as a gas storage business in the UK, will take control of that side of the project. Star will pay Northern’s share of the costs, including the FEED study, for each possible gas storage project on the Waalwijk licence. The FEED for the main producing field, Waalwijk North, carries an estimated price tag of €2 milllion. Star has also agreed to pay €2.25 million of €4.5 million Northern is committed to paying to the orginial operator, Wintershall, should the gas storage project go ahead.
The Waalwijk field produces some 7.5 million cubic feet per day from six wells draining the Bunter sandstones. There is one main accumulation and two separate closures. Northern’s share is 1.8 million cubic feet of gas per day, the equivalent of 330 barrels of oil per day, adding immediate production to Northern’s balance sheet. Northern plans to increase the residual recoverable gas in the North field from 2 billion cubic feet to 22 bcf (3.8 bcf net to Northern), with a further 7 bcf net to Northern if drainage in the southern closure is improved...
www.oilbarrel.com
t1ps.com
1 March 2007
Investec on Northern Petroleum*
Investec is house broker to Northern Petroleum* (NOP) and I have just stumbled across this note from analyst Tony Eccles from February 16th. I reproduce his words below. I note that Eccles is forecasting a small loss for calendar 2007 bjut earnings per share of 26.8p for 2008. That makes you think. My own stance remains "buy" at up to 145p. Eccles writes:
Northern Petroleum has issued a trading update, firming up the timing ofdrilling in Holland, initial production rates from the assets and its longer-term development plans. Given the persistent speculation over delays surrounding the drilling in Holland this operational update is timely. While a delay to the Ottoalnd drilling has been announced, Brakel has been accelerated and a definitive statement relating to both timing and the upgraded production target (2300b/d by March ’08) should now give investors a firm framework for newsflow over the next 12 months. As a result of the delays, we have trimmed our NAV to 225p and now assume material earnings will not be delivered until 2008.
Our 225p NAV is based on a conservative timetable for both near and medium-term developments. Despite this reduction, we believe a more transparent operating plan and the likelihood of a busy run of near-term newsflow should see the 60% discount to our NAV estimate at which theshares currently trade start to narrow over time. We retain our Buy stance on the stock but trim the price target to 225p, in line with our NAV. Ends. TW: The previous NAV was 245p per share.
*Northern Petroleum is a corporate client of Bishopsgate Communications which is owned by RSH the owner of t1ps.com Ltd, the owner of smallcapshares.co.uk.
Oil & Gas Journal
1 March 2007
Italy awards Northern Petroleum three licenses
...Northern Petroleum said its expanded acreage, spanning 4,370 sq km, holds significant petroleum potential. Its previous licenses hold many prospects that individually could contain reserves of 1 billion bbl of oil, according to its seismic survey. Northern Petroleum's subsidiary, Northern Petroleum UK (NPUK) will operate the new licenses and will work on a 50-50 basis with Oil PLC...
www.ogi.com
smallcapshares
19 February 2007
NORTHERN PETROLEUM*
NOP £66m 93p BUY
Development Update: Netherlands
Northern Petroleum* has revealed new development plans for six oil and gas
fields in the Netherlands. First production has been delayed and is now targeted
to come on-stream in stages during the first quarter of calendar 2008. However,
the good news is that forecast production levels have been hiked through the
concentration of efforts in three fields.
The company now targets initial gross production to reach 2,300 bopd and 10
Mw of electrical generating capacity by the end of March 2008. The three fields
are projected to yield a total oil and gas income at a rate ahead of previous
projections. The Brakel well has been scheduled to be re-perforated early next
month, with testing due for completion by the month-end. Meanwhile, the
Ottoland oil field lateral well has been schedule to commence in early April.
Much of the pre-engineering design work on the fields has been completed to
make the final planning and construction period as short as possible.
COMMENT
Northern's development plans have been significantly redesigned and improved.
Efforts can now be focused on maximising the potential of the projects where
regulatory approvals are already in place or expected imminently - namely
Brakel, Ottoland and Papekop. Significantly, the oil estimates have risen by
130% from a target of 1,000 bopd originally, so we expect a higher profit margin
as a result. This, coupled with the fact that oil, gas and electricity prices are well
ahead of Northern's original expectations, vastly increases the potential upside.
We recently tipped Northern at 88.5p and we have made a 5% gain on the
month. With a target price of 200p, our stance is unchanged. BUY.
www.smallcapshares.co.uk
*Northern Petroleum is a corporate client of Bishopsgate Communications which is owned by RSH the owner of t1ps.com Ltd, the owner of smallcapshares.co.uk.
oilbarrel.com
16 February 2007
Northern Petroleum’s Update On Its Holland Assets Suggests Although First Production Is Delayed, Target Exit 2007 Levels Are Increased
...Now Northern has further updated the plans for development and the gist is that although first production is delayed, targeted year-end 2007 production will be increased.
Broadly the six fields divide into what you might call three “Big Gas” fields - Andel VI, Geesburuq and Grolloo - with one smaller gas field, Brakel, and two oil and gas fields Ottoland and Papekop. By concentrating on these three latter fields initially, Northern reckons by the end of March 2008 there could be production of 2,300 bpd, and 10Mw of electrical generating capacity, through the onsite gas-to-power programme. This compares with the original phase one production targets of 1,000 bpd and 40Mw of electrical generating capacity by the end of 2007.
On site work has started and Brakel, which will be a makeover, and should start drilling in March, will be followed by Ottoland which could commence drilling in April...
www.oilbarrel.com
The Times Online
29 January 2007
...Nearly 90 exploration and production groups are sitting on the junior market after the “black gold rush” of two years ago. Industry experts believe that half could disappear over the next 12 to 18 months. Some will run out of cash but most will either be taken out by a predator or merge with a rival...
...Survivors, predators: Northern Petroleum...
t1ps.com
29 January 2007
...Well plus ca change. Northern is now valued at £60 million. It has £20 million in cash. It has UK
assets worth £5-10 million and Italian assets worth (based on Plus markets valuations) £25
million. So its Dutch assets which I reckon are - on a heavily risked basis - worth up to 100p a
share are basically in there for more or less nothing. If you wish to sell go ahead. You would be
quite certifiable if you did...
*Northern Petroleum is a corporate client of Bishopsgate Communications which is owned by RSH the owner of t1ps.com Ltd.
t1ps.com
22 January 2007
...In the end, of course, fundamentals will always out. If a company has no immediate need to raise fresh equity it can be relaxed about its share price. Share prices can be manipulated. I hear, for example, last week that professional shorters were calling up the press with a story that Northern Petroleum was running out of cash and was thus planning a rights issue at 90p a share. That is why Northern's shares eased back. Since both stories are patently absurd (Northern has net cash of £20 million) the long term investor can afford to ignore such nonsense...
*Northern Petroleum is a corporate client of Bishopsgate Communications which is owned by RSH the owner of t1ps.com Ltd.
t1ps.com
17 January 2007
Northern Petroleum* - Dutch News
Northern Petroleum* (NOP) has announced that it has signed a contract to use a
drilling rig to drill an appraisal and development well on the Ottoland prospect,
one of its six Dutch targets. It has brought forward its drilling plans by almost a
year. Ottoland tested oil in 1987 and so looks to be a decent prospect. The
market seems unexcited. For that I blame the sector. My valuation of Northern
remains at over 200p a share and at 100.5p the stance is "buy" at up to 145p.
*Northern Petroleum is a corporate client of Bishopsgate Communications which is owned by RSH the owner of t1ps.com Ltd.
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