Northern Petroleum announces interim results for six months ended 30 June 2014
First two wells of current three well programme in Canada drilled to target depth with liner cemented across reservoir sections. Successful proof of redevelopment concept in the Virgo field, Alberta, leading to the start up of Canadian production. Total oil production for the first six months of the year of 13,629 barrels generating revenue of $1.1 million (2013: $0.4 million).
Northern Petroleum provides the following update on drilling in Canada and announces its unaudited interim results for the six months ended 30 June 2014.
■ First two wells of current three well programme in Canada drilled to target depth with liner cemented across reservoir sections ■ Drilling rig will now move to third well and spud towards the end of the month ■ Service rig expected on site at the first well shortly to perforate and test ■ All three wells will be perforated and tested in succession by the service rig ■ Production test results expected for all three wells in the second half of October
■ Successful proof of redevelopment concept in the Virgo field, Alberta, leading to the start up of Canadian production ■ Increase of mineral lease acreage for the Keg River formation in north west Alberta from 9,300 to over 30,000 acres ■ Virgo field redevelopment programme initiated with two new wells and a well re-entry ■ All three wells brought into production by May ■ Follow up three well campaign started in August
■ Two new permits awarded in Italy; one onshore in eastern Piedmont and one adjacent to an existing permit in the Sicily channel ■ Political changes are providing an improved business environment in Italy giving more confidence that the Group will be able to make progress with the southern Adriatic permits within 2014 ■ Sale of UK assets to UK Oil & Gas Investments PLC announced in July
■ Total oil production for the first six months of the year of 13,629 barrels generating revenue of $1.1 million (2013: $0.4 million) ■ Cash of $22.0m as at 30 June 2014 (31 December 2013: $35.8m) - the reduction mainly reflecting investment in Canada ■ Following the development in Alberta and subsequent to sale of The Netherlands, the Group's functional and reporting currency has been changed to US dollars
■ Board strengthened with the appointment of Iain Lanaghan as Non-executive Director and Audit Committee chair ■ Graham Heard, Exploration and Technical Director, to retire at the end of the year and Paul Lafferty appointed to the senior management team as Chief Operating Officer
Keith Bush, Chief Executive Officer, commented:
"The Company has made considerable progress over the first half of the year during which the strategy of production led growth has been actively pursued. The three wells currently being drilled in Alberta will add to the production potential of the field and give us further confidence in our Keg River redevelopment play."
Drilling Update & Interim Results RNS Number : 8451R Northern Petroleum PLC, 17 September 2014 Auszug --> Summary and outlook
With the operational achievements in Canada, the business has successfully moved to a production led growth strategy during the first six months of 2014. The importance given to cash conservation has led to a reduction of the cost base and with the sale of the UK assets, the business is continuing to focus more on assets which support the strategy of maximising value in an appropriate timeframe and with an appropriate level of risk. The potential for progress in Italy in the second half of the year is encouraging and should enhance investor interest in the Group with opportunity for considerable upside in addition to the lower risk growth in Canadian production and development.
Northern Petroleum Plc ("Northern Petroleum" or "the Company")
Subscription to raise £1.2 million Production and reserves acquisition in Canada Open Offer Operations update
Northern Petroleum, the AIM quoted oil company focusing on production led growth, announces subject to shareholder approval, a proposed direct subscription of 40,000,000 new ordinary shares at three pence per share, to raise gross proceeds of £1.2 million ("the Subscription") and an acquisition of assets in northwest Alberta with production and reserves ("the Acquisition"), which is conditional upon financing. The Company also announces that a proposed open offer for up to a further 40,000,000 new ordinary shares at three pence per share will be made shortly to existing qualifying shareholders ("the Open Offer").
§ Non-brokered subscription of 40,000,000 ordinary shares at a price of three pence per share to be taken up by two existing shareholders, raising proceeds of £1.2 million, before expenses
§ Funds raised pursuant to the Subscription to be used primarily to fund the consideration for the Acquisition, which will allow the Company to:
- acquire assets near to existing Canadian operations, including wells and facilities, with current production of approximately 211 barrels of oil equivalent per day ("boe/d"), of which approximately 80 per cent. is oil, and proved and probable reserves of 1.185 million barrels of oil equivalent ("boe")
- execute an identified work programme of well and facility reinstatement, expected to double production over the next 12 months
§ Open Offer to be made to enable all qualifying shareholders to participate in the fundraising at the same issue price as the Subscription
§ Net cashflow from the Acquisition and the Company's existing assets forecast to broadly cover all of the Company's general and administrative cost using an oil price of US$47 per barrel through 2016
§ Processing and pipeline tie-in facilities included in the Acquisition are forecast to result in operating cost synergies for existing Virgo operations
§ The Subscription and Open Offer are subject to shareholder approval in a general meeting