Northern Petroleum says report identifies 15.06m barrels 3P oil reserve at Baxters Copse, Sussex

Northern Petroleum (AIM: NOP) said a report by RPS Energy for the Providence Resources PLC (AIM: PVR) operated Baxters Copse joint venture licence area (PEDL 233) in the Weald Basin attributes previously unreported gross 2P and 3P reserves of 5.36 million stock tank barrels (MMstb) and 15.06 MMstb respectively of undeveloped reserves.  The licence area has 1P reserves of 0.70 MMstb.

Of the reserves, 50 are attributed to NP Weald Ltd, a wholly owned Northern subsidiary.

The joint venture partners have agreed a work programme, targeting first oil in 2011. Baxter's Copse is located 5 kilometres northeast of Providence's 99.125%-owned Singleton oil field in West Sussex, which currently produces over 800 boepd.

"We are very pleased to announce the plans for Baxters Copse and its independently audited reserves”, Northern Petroleum MD Derek Musgrove commented. “The proximity of Baxters Copse to the Singleton production site means that the well can be drilled and produced without requirements for further Planning Consents. There are also plans to further evaluate the other prospects within PEDL233".

RPS Energy carried out a third party audit, including the reprocessing of the available 2D seismic data over Baxters Copse. According to Northern Petroleum, the data greatly improved subsurface imaging. Subsequent interpretation, depth conversion and mapping have indicated that Baxters Copse is a significantly larger oil accumulation than previously thought.

The partners agreed a work programme to advance Baxter's Copse into development, with the first potential horizontal production well expected to be drilled from the Singleton facilities in 2011.

"Our work programme on Baxter's Copse has dramatically upgraded the field's reserve potential and accelerated it towards development”, Providence chief executive Tony O'Reilly said. “The deployment of modern seismic processing technologies has been the key to understanding the potential of the Baxter's Copse discovery ... we look forward to working with our partner Northern Petroleum in the coming months to advance Baxter's Copse to first oil in 2011.”

Following the news, London-based stockbroker Astaire Securities commented that the report was an undoubtedly positive update, confirming its view of Northern as a solid E&P play, underpinned by both reserves and production.
Northern Petroleum operates in 5 main geographic areas, with projects in the Netherlands, the United Kingdom and Italy as well a small assets in Spain and Guyane.

Last month, Northern Petroleum Dutch subsidiary acquired the respective interests of Nederlandse Aardolie Maatschappij (NAM) and Dyas in the Zuid-Friesland III production license, and subsequently the company assumes operatorship of the license. Concurrently, the license had been granted to NAM and Dyas along with Total (NYSE: TOT) and Petro-Canada, Northern Petroleum’s interest was acquired as the result of a prior agreement between the parties.

The 25 year license covers 104.6 sq km (square kilometres) in the province of Friesland in the Netherlands and includes two gas fields, Oppenhuizen and Woudsend. The Oppenhuizen-1 well drilled in 1972 discovered gas in the Zechstein 2 carbonate and tested initial rates of 15 mmscf/d (million standard cubic feet per day) and is currently suspended. The Woudsend-1 well was drilled in 1987 and discovered gas in the Zechstein carbonate, but was never tested.

The unaudited estimate of the Gas Initially in Place (GIIP) of the two fields is a combined 107 Bscf (billion standard cubic feet) with expected recovery factors of the order of 60%. After 40% participation by Dutch state owned Energie Beheer Nederland B.V. (EBN), NPN's working interest is 44.34%. The transfers are subject to the usual government consent.

Elsewhere, in the Netherlands, Northern’s assets include a total of 8 licences, 5 on-shore producing, 1 off-shore producing and 2 on-shore exploration.

The company is currently advancing the development of four of its gas fields in the Netherlands - Grolloo, Geesbrug,  Wijk  en  Aalburg  and Brakel - which are expected to produce,  in aggregate, daily rate of up to 800,000 m³ per day (30 mmscfd) in 2010. In December 2009, Northern Petroleum brought the Grolloo field on-stream, which was subsequently followed by the Geesburg commencement in January 2010.

Also in March, Northern Petroleum also reported on its progress in Italy, where it completed the seismic operations in the offshore West Sicily thrust belt, which covers four licences. The licenses are being explored through a joint venture with Royal Dutch Shell (LSE: RDSB, RDSA) subsidiary, Shell Italia E&P SpA.

The seismic acquisition was funded by Shell, as part of the farm-in arrangement signed in December 2008, and it aimed to obtain a better quality, and more complete, definition of the encouraging structures identified by the two previous 2D seismic campaigns.

Northern Petroleum (AIM: NOP) said a report by RPS Energy for the Providence Resources PLC (AIM: PVR) operated Baxters Copse joint venture licence area (PEDL 233) in the Weald Basin attributes previously unreported gross 2P and 3P reserves of 5.36 million stock tank barrels (MMstb) and 15.06 MMstb respectively of undeveloped reserves. The licence area has 1P reserves of 0.70 MMstb. Of the reserves, 50 are attributed to NP Weald Ltd, a wholly owned Northern subsidiary. The joint venture partners have agreed a work programme, targeting first oil in 2011. Baxter's Copse is located 5 kilometres northeast of Providence's 99.125%-owned Singleton oil field in West Sussex, which currently produces over 800 boepd. "We are very pleased to announce the plans for Baxters Copse and its independently audited reserves”, Northern Petroleum MD Derek Musgrove commented. “The proximity of Baxters Copse to the Singleton production site means that the well can be drilled and produced without requirements for further Planning Consents. There are also plans to further evaluate the other prospects within PEDL233". RPS Energy carried out a third party audit, including the reprocessing of the available 2D seismic data over Baxters Copse. According to Northern Petroleum, the data greatly improved subsurface imaging. Subsequent interpretation, depth conversion and mapping have indicated that Baxters Copse is a significantly larger oil accumulation than previously thought. The partners agreed a work programme to advance Baxter's Copse into development, with the first potential horizontal production well expected to be drilled from the Singleton facilities in 2011. "Our work programme on Baxter's Copse has dramatically upgraded the field's reserve potential and accelerated it towards development”, Providence chief executive Tony O'Reilly said. “The deployment of modern seismic processing technologies has been the key to understanding the potential of the Baxter's Copse discovery ... we look forward to working with our partner Northern Petroleum in the coming months to advance Baxter's Copse to first oil in 2011.” Following the news, London-based stockbroker Astaire Securities commented that the report was an undoubtedly positive update, confirming its view of Northern as a solid E&P play, underpinned by both reserves and production. Northern Petroleum operates in 5 main geographic areas, with projects in the Netherlands, the United Kingdom and Italy as well a small assets in Spain and Guyane. Last month, Northern Petroleum Dutch subsidiary acquired the respective interests of Nederlandse Aardolie Maatschappij (NAM) and Dyas in the Zuid-Friesland III production license, and subsequently the company assumes operatorship of the license. Concurrently, the license had been granted to NAM and Dyas along with Total (NYSE: TOT) and Petro-Canada, Northern Petroleum’s interest was acquired as the result of a prior agreement between the parties. The 25 year license covers 104.6 sq km (square kilometres) in the province of Friesland in the Netherlands and includes two gas fields, Oppenhuizen and Woudsend. The Oppenhuizen-1 well drilled in 1972 discovered gas in the Zechstein 2 carbonate and tested initial rates of 15 mmscf/d (million standard cubic feet per day) and is currently suspended. The Woudsend-1 well was drilled in 1987 and discovered gas in the Zechstein carbonate, but was never tested. The unaudited estimate of the Gas Initially in Place (GIIP) of the two fields is a combined 107 Bscf (billion standard cubic feet) with expected recovery factors of the order of 60%. After 40% participation by Dutch state owned Energie Beheer Nederland B.V. (EBN), NPN's working interest is 44.34%. The transfers are subject to the usual government consent. Elsewhere, in the Netherlands, Northern’s assets include a total of 8 licences, 5 on-shore producing, 1 off-shore producing and 2 on-shore exploration. The company is currently advancing the development of four of its gas fields in the Netherlands - Grolloo, Geesbrug, Wijk en Aalburg and Brakel - which are expected to produce, in aggregate, daily rate of up to 800,000 m³ per day (30 mmscfd) in 2010. In December 2009, Northern Petroleum brought the Grolloo field on-stream, which was subsequently followed by the Geesburg commencement in January 2010. Also in March, Northern Petroleum also reported on its progress in Italy, where it completed the seismic operations in the offshore West Sicily thrust belt, which covers four licences. The licenses are being explored through a joint venture with Royal Dutch Shell (LSE: RDSB, RDSA) subsidiary, Shell Italia E&P SpA. The seismic acquisition was funded by Shell, as part of the farm-in arrangement signed in December 2008, and it aimed to obtain a better quality, and more complete, definition of the encouraging structures identified by the two previous 2D seismic campaigns.