Embargoed for release: 1015 on 30 June 2010
Northern Petroleum Plc
("Northern", "the Group" or "the Company")
AGM Statement
Northern Petroleum Plc (AIM:NOP), the independent oil and gas exploration,
development and production company announces that at the Annual General Meeting
("AGM") held today, the Chairman of the meeting, Richard Latham will make the
following statement:
"We have initiated a change of strategy to increase activity and greater
progress in realising the potential of our assets. An emphasis is placed upon
drilling prospects in The Netherlands and undertaking a large offshore seismic
survey in Italy to de-risk the very high potential value of the licences,
making them more attractive for major oil industry players to farmin and
thereby bringing forward the drilling activities. The Company will also
participate alongside Tullow, Shell and Total in drilling of one or more wells
in an exploration licence offshore Guyane (Northern:1.25% interest).
"Northern has implemented a three phased programme to increase funds for these
initiatives:
* A £10 million placing of new shares;
* A Netherlands production based loan facility ring fenced to the country;
and
* The sale of UK assets, including 6.82 million barrels of Proven and
probable oil reserves, now considered non-core.
"Northern has instructed Envoi Limited to realise the value of its non-core UK
assets. In the meantime, three wells are being planned in the UK, with
construction of the Havant and Markwells Wood well sites now completed and
ready to drill.
"Discussions have been in progress towards the granting of a loan facility to
enable the faster development of The Netherlands reserves based upon the
security of the local asset base and new production revenues. We are optimistic
as to a successful conclusion. In June this year, we successfully placed of
11,764,706 new Ordinary Shares of 5 pence each at 85p per new Ordinary Share
raising £10 million of gross proceeds. .
"In summary your Company is well capitalised with approximately EUR23 million
of cash, and has the prospect of a Netherlands loan facility and potential
funds from the sale of UK assets.
"With our large asset base with over 100 million barrels of independently
assessed reserves and new production on-stream in The Netherlands, I would like
every shareholder to leave this meeting knowing that their Company has embarked
upon an exciting new phase of accelerated growth."
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 35 years experience as a petroleum geologist.
- ENDS -
For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7469 2900
Derek Musgrove, Managing Director
Chris Foss, Director of Legal & Corporate Affairs
Graham Heard, Exploration & Technical Director
Nigel Wright, Finance Director
Sophie Hull, Head of Corporate Communications
Cenkos Securities (NOMAD and Joint Broker)
Jon Fitzpatrick Tel: +44 (0) 20 7397 8900
Jefferies International (Joint Broker) Tel: +44 (0) 20 7029 8000
Chris Snoxall
Financial Dynamics Tel: +44 (0) 20 7831 3113
Billy Clegg / Edward Westropp
Bishopsgate Communications Tel: +44 (0) 20 7562 3350
Nick Rome / Michael Kinirons
About Northern
Northern Petroleum Plc is an independent oil and gas Exploration Company listed
on the AIM market in London focused on the European Union and nearby areas.
Comprehensive information on Northern and its oil and gas operations, including
all press releases, annual reports and interim reports are available from
Northern's website at www.northpet.com.