Northern Petroleum starts drilling of three new wells

7th Aug 2014 17:39

Northern Petroleum said on Thursday it will start this week the drilling of the first of three new wells at the Virgo redevelopment project in Canada.All wells will be completely drilled by the end of October, with a total cost of $6m. The sales prices were at $90 per barrel after pipeline tariffs.The company's unaudited cash balance as at 30 June 2014 was $22m.UK Oil & Gas investments is set to acquire Northern Petroleum's interests in the UK for $2.5m in cash before the end of the year.Northern Petroleum's chief executive, Keith Bush, said: "The priority of these three wells is to continue to build production and reinforce the attractive economic and development assumptions of the Virgo redevelopment. Upon success, the field will deliver material oil production and cash-flow for the business by the fourth quarter of this year, in-line with the Company's production led growth strategy."Shares were up 3.58% to 21.1p on Thursday at 4:21.JF