Investors Chronicle
11 December 2008
The Outlook for Mining and Oil and Gas Juniors
...Without access to debt and equity, companies might be tempted to employ their hydrocarbon wealth too early, thereby eroding value. Look for companies such as ... Northern Petroleum that have good records of negotiating favourable farm-in deals that demonstrate underlying asset value...
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Proactive Investors
4 December 2008
Edison, Blue Oar upbeat on Northern Petroleum after Shell farm-out deal news
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Energy Current
4 December 2008
Northern Petroleum subsidiary Northern Petroleum (UK) Ltd. farmed out six of its Sicily Channel licences offshore Italy. A 55 percent interest in licenses GR17-NP, GR18-NP and GR19-NP and a 70 percent interest in licenses GR20-NP, GR21-NP and GR22-NP were bought by Shell Italia E&P S.p.A. The transaction is subject to approval by the government and regulatory ministries of Italy.
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RTT News
4 December 2008
Northern Petroleum Plc announced that it has signed a binding heads of agreement with ATI Oil Plc. Northern currently has a 37.05% shareholding in ATI...
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Scandanavian Oil & Gas Magazine
4 December 2008
The stock price of Northern Petroleum soared 11 percent on Thursday after the company disclosed it had brought Shell in as a partner on six of its Italian licenses...
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SmallCapNews
4 December 2008
Oil and gas company Northern Petroleum has agreed a deal with EBN, the Netherlands state-backed energy group, which will see a 40% participation by EBN in the Andel III production licence...
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Sharecast
4 December 2008
Northern Petroleum has farmed out six of its offshore Sicily Channel licences in Italy to Shell. Under the terms of the farm-out agreement Shell will earn 55% in GR17-NP, GR18-NP and GR19-NP; and 70% in GR20-NP, GR21-NP and GR22-NP...
Offshore
4 December 2008
Northern Petroleum (UK) has farmed out six of its offshore Sicily Channel licenses in Italy (GR17-NP, GR18-NP, GR19-NP, GR20-NP, GR21-NP, GR22-NP) to Shell Italia E&P...
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thisismoney.co.uk
29 September 2008
Oil companies up for grabs
...Six that are attracting interest...
Northern Petroleum - Drilling along in the south coast of England. Reserves are respected but investors are spooked by high-profile sellers of the stock.
Interactive Investor
19 May 2008
Buy Northern Petroleum
Northern Petroleum (NOP), the oil and gas production, development and exploration company listed on AIM, has released its unaudited preliminary results for the year ended 31 December 2007. Revenue came in at £4.1 million - up from £0.3 million in 2006 and thanks to the 880 million cubic feet of gas produced from its Waalwijk field in the Netherlands, which exceeded forecasts by 7%. Net profit after tax increased from a net loss in 2006 of £1.7 million to a net profit of £14.9 million in 2007 thanks to the £19.7 million profit booked on the sale of sale of a 25% interest in six onshore Dutch oil and gas discoveries to Dyas B.V. Basic and diluted earnings-per-share turned positive at 21.2p and 19.7p respectively compared to 2006's results of a negative 2.7p for both measures. Net cash stood at around £22 million at the balance sheet date, but with approximately £4.6 million due from the strategic alliance fee agreed with Dyas in April 2008, current net cash reserves are believed to be around £26 million. Net assets jumped to £41.0 million, up from £23.9 million, as booked P2 reserves increased by almost 27% over the year.
In the Netherlands, although the planning and regulatory authorities slowed progress, the re-drilling of the Ottoland well is far advanced and will deliver faster production rates in the next few months. Planning is moving forward at the Papekop and Brakel sites in the south, while the restructured Geesbrug and Grolloo gas fields in the north aim to take advantage of newly available processing capacity at a nearby facility. At Waalwijk, Northern hopes to increase late phase gas production and advance plans to develop a 30 bcf underground gas storage facility.
Exciting developments in Italy has seen the company produce large gains of reserves in the Durres basin. The Giove and Rovesti fields show P2 reserves of 53.23 million barrels of oil with each project's production potential assessed at over 20,000 bopd. Further prospects in the Adriatic Sea and around Sicily have great potential with the former showing P10 reserves of 6.03 billion barrels of oil and the latter seeking farm out licences for development of the site.
UK plans
Closer to home, drilling sites and planning approvals are being sought at Markwells Wood, Hedge End and PEDL 099/155 in the UK. The Avington site is awaiting planning permission from the local council authority, which - once granted - will prompt the commencement of a long term production strategy.
Overall, barrels of oil equivalent in reserves jumped from 60.53 million to 76.55 million in 2007. Acquisitions at the Waalwijk site in the Netherlands boosted gas holdings by 20.21 bcf, while 26.61 million bbl oil was discovered at the company's Italian projects. Production of 0.88 bcf gas (Netherlands) and 0.01 million bbl oil (UK), together with the disposal of 25% of the company's interest in the oil and gas discoveries in the Netherlands reduced oil and gas reserves by 3.45 million bbl and 60.65 bcf respectively.
The first significant sale of gas from the Netherlands marks an exciting development in the company's history. Despite the number of well advanced projects in Northern's portfolio, there is always a relief when the first sale is made. The company's projects in the Netherlands and UK are expected to produce steady cashflow during 2008, however it is Italy and the Dutch gas storage scheme where the real upside is to be found We forecast revenue to remain flat in 2008, but with a major jump in 2009 as further production sites in the Netherlands come on line. Our sum of the parts derived valuation remains at 321p and our recommendation remains buy.
oilbarrel.com
29 January 2008
Dutch Production And Italian Reserves Buoy Northern Petroleum As 2008 Gets Underway
...Italy is another undervalued resource in the Northern portfolio. In recent years, the AIM company has quietly built an impressive but as yet undervalued footprint in Italy, where it operates 24 oil and gas licences spanning some 13,000 sq km across three core areas: the gas-rich Po Valley, offshore Sicily and the oil-prone Southern Adriatic. Edison values the company’s Italian assets at £194.4 million.
Perhaps the most interesting assets here are the Adriatic licences. At the end of 2007 Northern released details of petroleum engineering reports covering just two of its four licences in the Southern Adriatic. The reports, compiled by Blackwatch Petroleum Services, cover two known discoveries and six drill-ready prospects with the potential to hold up to 6 billion barrels of oil in place. That’s six billion, not six million. This, if proven by the drillbit, is real company-making stuff.
The Rovesti discovery is reckoned to hold 33.56 million barrels of probable recoverable reserves with an API number of between 25 and 30 degrees with the heavier Giove oil discovery (around 16-egree API) holding a probable 19.67 million barrels. Northern holds 50 per cent of the licences alongside ATI Oil plc, in which it has a 37 per cent stake. This gives Northern a 68.5 per cent net beneficial interest in the discoveries. The Blackwatch report, assuming a US$70 oil price, values Northern’s interest in these two fields at US$411 million.
The six prospects, which lie in licences F.R39.NP and F.R40.NP, could hold between 1.26 billion barrels and 6 billion barrels of oil in place (the latter number is a 10 per cent chance). In-house calculations by Northern and the previous operator Enterprise Oil suggest the upside potential could be around 3.5 billion barrels of probable reserves. Enterprise held the acreage for the 12 years up until its acquisition by Shell, which allowed the licences to lapse in 2000 as this was a time of low oil prices and the resource was considered immaterial to the Anglo-Dutch supermajor...
www.oilbarrel.com
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