Northern Petroleum PLC Winter Work Programme and Cash & Production Update (6655V)
February 01 2017 - 1:00AM
UK Regulatory
TIDMNOP
RNS Number : 6655V
Northern Petroleum PLC
01 February 2017
Northern Petroleum Plc
("Northern Petroleum" or "the Company")
Canadian winter work programme
Cash and production update
Northern Petroleum (AIM: NOP), the AIM quoted oil company
focusing on production led growth, announces that the winter work
programme in Canada has now started.
Winter work programme
-- Approximately 20 wells that have been shut in for up to 18
years will be returned to production
-- The programme is expected to take two months and cost
approximately US$2.5 million gross (the Company has a 75 per cent.
working interest)
-- The intervention work is focused on straightforward well
operations, including the replacement of downhole pumps and rods,
tubing upgrades and the re-perforation of existing zones
-- Two further wells have been chosen as recompletion candidates
for the reinjection of produced water
-- Well stimulation using Blue Spark Energy WASP(c) technology
to improve production rates will be performed on selected wells
-- The work programme is expected to add more than 300 barrels
of oil per day ("bopd") gross of production
-- The work programme may also be expanded, depending on the
timing of the arrival of warmer weather
Production
-- Average production last year more than doubled following the
2016 winter work programme:
- average production during the last quarter of 2015 was approximately 150 bopd
- average production from March to December 2016, following
investment was approximately 310 bopd
-- Current production is approximately 325 bopd gross with five
wells shut in for maintenance
Cash
-- The Company's cash balance as at 31 January 2017 was US$8.1
million
-- Following regulatory approval of the sale of 10 per cent. of
the Company's southern Adriatic permits to High Power Petroleum
("H2P"), expected in the second quarter this year, an additional
US$0.5 million will be paid to the Company
Keith Bush, Chief Executive Officer of Northern Petroleum,
commented:
"The winter work programme, the first of this year's planned
capital investments, is designed to increase production and
cashflow in Canada to a more material level. In line with our
production led growth strategy, the work adds production that
reduces the overall production cost per barrel while minimising the
capital outlay through simple operations.
"Evaluating the performance of the Blue Spark technology will
allow us to understand how it can benefit our asset portfolio. In
conjunction with our new partner H2P, the work we have planned in
both Canada and across the Company should provide for a significant
improvement in Company performance and makes for an exciting
2017."
Blue Spark Energy
In December 2016 H2P, a subsidiary of I-Pulse Inc. acquired 25%
of Northern Petroleum's assets in Alberta, Canada. As part of the
acquisition consideration, US$0.25 million of well stimulation
services from Blue Spark Energy Inc, also a subsidiary of I-Pulse
Inc., were committed by H2P. The Company consider that the Rainbow
and Virgo assets may provide an excellent opportunity to show the
benefit in production that WASP(c) technology can provide. This
work will be included as part of the winter work programme. More
information on the technology can be found on the Blue Spark Energy
Inc. website www.bluesparkenergy.net/wasp/
-Ends-
For further information please contact:
Northern Petroleum Plc Tel: +44 (0)20 7469 2900
Keith Bush, Chief Executive Officer
Nick Morgan, Finance Director
Stockdale Securities Limited (Nomad and Joint Broker) Tel: +44
(0)20 7601 6100
Antonio Bossi
David Coaten
FirstEnergy Capital LLP (Joint Broker) Tel: +44 (0)20 7448
0200
Jonathan Wright
Note to Editors:
Northern Petroleum is an oil and gas company focused on
production led growth. The Company is undertaking a redevelopment
and production project in north west Alberta and has a broader
portfolio of exploration and appraisal opportunities in countries
of relatively low political risk, primarily Italy. Comprehensive
information on Northern Petroleum and its oil and gas operations,
including press releases, annual reports and interim reports are
available from Northern Petroleum's website:
www.northernpetroleum.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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