Northern Petroleum is shortly to commence drilling the Markwells Wood -1 well to test a target with a mean potential independently assessed at 35.0 million barrels of oil in place, with an upside potential of 61.4 million barrels with a ten percent probability. The drilling equipment is currently moving onto the site.
The location is between the Horndean and Singleton producing oil fields and is assessed to be an extension of the former. The final measured depth will be 6009 ft (1831m) at a true vertical depth of 4528 ft (1380m). Electric logs will be run to evaluate their well potential.
Northern is committed to be a good neighbour to the local community and conducting its operations to very high standards of safety, health and reduction of environmental impact.
Derek Musgrove, Managing Director, commented "The commercial case for drilling Markwells Wood -1 is compelling when the price level of oil is above $80 per barrel for Brent crude oil. The independent consultants RPS Energy report in February 2010 assessed the Markwells Wood recoverable Proven plus Probable oil reserves at 5.7 million barrels and stated a value of 24.75m based on an $80 oil price for our 50% interest in Markwells Wood.
Whilst we see greater potential in Italy and The Netherlands, it is important that we are pursuing and realising shareholder value for the oil discoveries at Markwells Wood, Baxters' Copse and Hedge End. If we are not offered the value of the UK assets through a sale, then we will realise the value by drilling and producing the assets."The Licence Partners in the Markwells Wood well are Northern Petroleum (GB) Limited 50%; Magellan Petroleum (UK) Limited 40% and Egdon Resources U.K. Limited with 10%
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