Northern Petroleum Initiates Strategy To Raise Activity, Funds

30th Jun 2010 10:25

LONDON (Dow Jones)--Northern Petroleum PLC (NOP.LN), an independent oil and gas exploration, development and production company, said Wednesday it has initiated a change of strategy to increase activity and greater progress in realizing the potential of its assets. MAIN FACTS: -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 licenses, making them more attractive for major oil industry players to farm-in and thereby bringing forward the drilling activities. -Company will also participate alongside Tullow Oil PLC (TLW.LN), Royal Dutch Shell PLC (RDSA) and Total S.A. (TOT) in drilling of one or more wells in an exploration license offshore Guyane (Northern:1.25% interest). -Northern has implemented a three phased program to increase funds for these initiatives: * A £10m placing of new shares * A Netherlands production based loan facility ring fenced to the country; and * The sale of U.K. assets, including 6.82m barrels of Proven and probable oil reserves, now considered non-core. -Northern has instructed Envoi Ltd. to realize the value of its non-core U.K. assets; In the meantime, three wells are being planned in the U.K., 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. -Company is well capitalized with EUR23m of cash, and has the prospect of a Netherlands loan facility and potential funds from the sale of U.K. assets. -Shares at 0920 GMT down 3 pence, or 2.9%, at 99 pence valuing the company at GBP90.89 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires June 30, 2010 05:25 ET (09:25 GMT)