Northern Petroleum Share Discussion Threads

[maxk] 27/5/2011 08:16

Naturally!

[soulsauce] 27/5/2011 08:15

Of course CC will have sold his too before todays news.

[maxk] 27/5/2011 08:14

Dog will be barking!

[skyship] 27/5/2011 08:13

Hmm - bought a few a week ago to snipe a few pennies, instead took a small loss when it dropped through 120p. Now look at them! Two things:

1. Musgrove must stand down surely

2. The FSA should investigate the selling over the past two weeks. Couldn't be a clearer case of a leak

If holding, I would continue to hold as this clearing of the desks might finally trigger a bid, though no idea from where....

[soulsauce] 27/5/2011 08:12

You know the worst thing is some got prior warning of this as is evidenced by the fall a few days ago - naughty naughty.

Now waiting patiently for Winnipants positive spin!!

[goldenshare888] 27/5/2011 08:10

That's oil shares.

Sticking with gold explorers,as atleast the gold does not run away!!!

Luckily only small gamble for me as it was heavily tipped by some weaner!!

Very wary of certain tipsters.

[soulsauce] 27/5/2011 08:09

Well if that doesn't ask for Musgrove to finally resign, all too late, nothing will. Sorry for your loss chaps.

[bookiebuster] 27/5/2011 07:55

A bad-news-friday special from the lads

- 2P reserves at Geesburg cut by 47%
- 2P reserves at Grolloo cut by 72%
- 2P reserves at Wijk en Aalburg cut by 48%
- Whopping net loss to be reported due to asset impairments
- Geesburg: delay until appropriate gas compressor is procured
- Geesburg production well planned for 2011 delayed until 2012
- Grolloo: plan to install equipment to aid production delayed
- Wijk en Aalburg: increasing water cut now affecting production levels
(if well intervention unsuccessful significant further impairment charges expected)

[failedqs] 27/5/2011 07:53

And the shareprice fall over the recent past is obviously as a result of this news leaking out and those "in the know" selling existing holdings and/or shorting.....
This should be investigated.
I've been a holder for about 5 years now, what a f#cking shambles of a company, really bad. I work for an oil and gas operator, and thought I knew a good prospect, but obviously not !!

[ohisay] 27/5/2011 07:50

Don't think I've ever seen reserves knocked down as much in any established oil company.

[failedqs] 27/5/2011 07:46

Absolutely shocking. The management should either walk (if they have any decency) or get sacked.
This company has consistently failed to deliver anything for years and years, its time that there was change.
Really, its a shocker, they are inept.....

[estienne] 27/5/2011 07:45

This was Tom Winnifirith's Tip if the year!

[ammons] 27/5/2011 07:42

Cripes!! This is terrible news. The story has leaked hence the update before the numbers are finalised. 2P down by about 50% 70 pence at open anyone?

[chriswatts] 27/5/2011 07:36

Fair bit of news in there - none of it good. Was this leaking responsible for the 10%+ drop over the last week?

I guess we'll get more today

[forcemode] 27/5/2011 07:35

No mention of Shell and shelling out more hard earned for Seismic! Jeez!

[estseon] 27/5/2011 07:27

This explains the recent weakness.

[valhalla3] 27/5/2011 07:20

TIDMNOP

Embargoed for release: 0700 on 27 May 2011

Northern Petroleum Plc

("Northern, "the Group" or "the Company")

Reserves and Production Operations Update

Northern (AIM:NOP) announces that it will be revising its 2011 production
forecasts and is making changes to reserve estimates in the Netherlands. The
adjustments concern three of the five gas fields operated by Northern.

The revisions to reserves follow an ongoing economic and technical evaluation.
Reprocessing of the 3D seismic data over Geesbrug and Wijk en Aalburg fields,
plus much of the rest of the Netherlands acreage has been underway for some
time. When it has been received and interpreted, the static and dynamic field
models will be updated with the production data later this year, it will then
be possible to make a further assessment of the reserves. Northern has not as
yet had the opportunity to review these reserve adjustments with joint venture
partners but believes it to be prudent to make a reserves revision now.

The revisions are as follows:

Fields Previous 1P Revised 1P Previous 2P Revised 2P

Gas (Bscf) Gas (Bscf)

Geesbrug 73.63 60.22 137.85 72.79

Grolloo 6.44 2.29 10.52 3.00

Wijk en Aalburg 3.82 0.36 5.49 2.83

The above revisions reduce the Group's 2P reserves by 75.24 Bscf, which is the
equivalent of 12.97 million barrels of oil equivalence. When the Company issued
its results for the six months ended 30th June 2010, it reported Group 2P
reserves of 102.67 million barrels of oil equivalence.

Following these changes to reserve estimates for Geesbrug, Grolloo and Wijk en
Aalburg, the Company now expects to report a loss after tax for the year ended
31st December 2010 as a consequence of the resulting additional non cash
depletion and impairment charges to the income statement.

Average production for 2010 was approximately 1,200 barrels oil equivalence per
day. The Company expects to report 2010 revenue of approximately EUR15 million,
broadly in line with market expectations.

Average production for the first four months of 2011 has been just over 1,900
barrels oil equivalence per day.

On average Dutch gas prices have increased by approximately 13% over the first
four months of 2011.

At Grolloo, which started commercial production in late 2009, the initial plan
had been to install compression and or other surface equipment to aid and
increase production once the pressure had stabilised and there was an
observable influx of supplementary gas flow from the lower permeability
reservoir matrix, allowing for the basis of design for the equipment. Until now
no such stabilisation has been observed.

Northern considers that it is not feasible to add compression in time to make a
material impact to 2011 gas production. In conjunction with preparation of the
Annual Report and Accounts for 2010 and for the purposes of production
projection and reserve assessment for the Grolloo gas field, Northern has taken
the decision to adopt what is considered to be the more conservative view that
pressure support from lower permeability reservoir matrix will not occur.

At Wijk en Aalburg, which came into commercial production in December 2010,
Northern has experienced the production of increasing quantities of oil,
followed by increasing quantities of water, which has now affected production
levels.

There are several possible explanations for such behaviour. A possibility could
be a near borehole build up of asphaltenes inhibiting flow. The well also has a
geological fault intersecting the base of the reservoir sequence which may be
acting as a conduit for the influx of liquids. It could also be a delay to
influx of lower permeability reservoir matrix gas, as at Grolloo. The issues
are being addressed and instruments were placed in the well on 25th May as a
first step in the determination of possible interventions. The carrying value
of the Wijk en Aalburg field as at 31st December 2010 is approximately EUR8
million. If the well interventions are ultimately unsuccessful, then Northern
would expect to see significant non cash depletion and impairment charges to
the income statement within the results for the year ending 31st December 2011,
the exact quantum of which would depend on, inter alia, future field
performance and gas prices.

At Geesbrug, a far larger gas field which was placed on-stream in December
2009, the production performance has been analysed in conjunction with the
disappointing results of the Tiendeveen-1 well five kilometres away. An updated
static reservoir model has been constructed that forms the current basis of the
revised reserves assessment prior to updating the dynamic model.

There has been a change to production decline interpreted as lower permeability
reservoir matrix feed, but there will be a delay before an appropriate
compressor can be procured given that further production data are required to
design the appropriate compressor. The Tiendeveen-1 well results also lead
Northern towards a new interpretation of reservoir distribution for the
Geesbrug field. Reprocessing of all applicable 3D seismic coverage was deemed
essential for placing future development wells and was initiated last year as
part of the development plan for the field. The planned 2011 Geesburg-2 new
production well will now most likely be delayed into early 2012 to utilise the
reprocessed 3D seismic data to determine the most appropriate location of the
well. This is designed to be a 3000-4000 foot lateral reservoir intersection
with multi-stage fracturing operations which are designed to result in a
greater ability for higher production rates than near vertical wells.

Equipment and services for the Ottoland long term oil test have been selected
and when all the permits are in place operations can commence. The test is
currently expected to be in the third quarter of this year.

The first Papekop oil development well is planned for later this year.
Reprocessed 3D seismic data will be available for planning the final well
trajectory which will include a horizontal hydraulically fractured intersection
of the reservoir.

At Markwells Wood in the UK, plans are well advanced for the production test to
commence this summer of the oil discovery made in December 2010. The test
design has been completed and the required equipment and services have been
selected. The test is planned to commence in late July/early August.

Progress continues to be made in Italy to move towards the drilling of some of
the high impact exploration prospects. In the Southern Adriatic plans are
advanced to acquire a 2D seismic survey over permits F.R39.NP and F.R40.NP that
contain the Giove and Rovesti discoveries and it is intended that in addition
two 3D seismic surveys will be acquired over these two oil fields and a number
of exploration prospects later this year. Blackwatch Petroleum Services in 2007
reported 2P Reserves of 53.16 million barrels for the two fields and assigned a
Post-Tax Net Present Value (NPV@10%) of GBP610 million at a $70 oil price based
on developing the fields independently, each with a new build FPSO. Northern
and our new partner Azimuth Limited (15% interest) will be seeking additional
partners to assist with the development of the fields and the drilling of
exploration wells. Northern has mapped prospects in the two permits with over
one billion barrels of oil equivalence prospective resource, split
approximately equally between oil and gas.

It is intended that a further update, including guidance on average 2011
production levels in light of the revisions to reserves, will be provided with
the announcement of the results for the full year ended 31st December 2010.

- Ends -

For further information please contact:

Northern Petroleum Plc
Graham Heard, Exploration & Technical Director Tel: [phone]

Cenkos Securities (NOMAD and Joint Broker)
Jon Fitzpatrick Tel: [phone]
Ken Fleming / Beth McKiernan Tel: [phone]

Financial Dynamics
Billy Clegg Tel: [phone]

Glossary

1P, 2P Proved/Proved and Probable

2D, 3D Two/three dimensional (in relation to seismic surveys)

Bscf Billion standard cubic feet

FPSO Floating Production Storage and Offloading vessel

MMstb Million stock tank barrels

Probable Probable reserves are those unproved reserves which analysis
of geological and engineering data suggests are more likely than not to be
recoverable in this context and when probabilistic methods are used, there
should be at least a 50 per cent probability that the quantities actually
recovered will equal or exceed the sum of estimated proved plus probable
reserves.

Proved Proved reserves are those quantities of petroleum which, by
analysis of geological and engineering data, can be estimated with reasonable
certainty to be commercially recoverable, from a given date forward, from known
reservoirs and under current economic conditions.

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. He has
compiled, read and approved the technical disclosure in this regulatory
announcement. The technical disclosure in this announcement complies with the
SPE/WPC standard.

Notes to Editors:

Northern is listed on the AIM market of the London Stock Exchange.
www.northpet.com



END

[bionicdog] 27/5/2011 00:15

It's those bloody MMs , shorters , masons etc etc.

[maxk] 26/5/2011 21:11

Slip sliding away ..... again.

[valhalla3] 26/5/2011 17:49

Dont think arnies up 4 it atm imp lol his got iligitimate kidz everyware me duk lol U=#

[imperial3] 26/5/2011 16:25

Shame that this is not reflected in the share price,which has been declining recently.Bargain for a predator inmho.

[charles clore] 26/5/2011 16:24

Double bottom? Hope so!

[azalea] 26/5/2011 12:29

Ch'man Interims 29/9/10. "NOP strong asset base has, and will continue to be, steadily transformed into production and asset sales income".