Northern Petroleum Sells Dutch Assets

Junior oil and gas firm Northern Petroleum reported Tuesday that it has agreed to sell its Netherlands subsidiary to Vermilion Energy for $26.7 million.

The deal will also see Northern receive a 20-percent interest in any net profit generated from the Papekop oil and gas discovery, onshore Netherlands, if it is developed and brought into production. The firm will also receive a 10-percent net profit interest over any future production from unconventional reservoirs that lie primarily in the Posidonia shale sequence.

Northern said its rationale for the sale was based on the cost of developing and increasing production of its Netherlands portfolio to more material levels. This portfolio currently consists of five producing gas fields onshore and one offshore gas field. Average production from these fields during the six months to June 30 was 851 barrels of oil equivalent per day.

Northern said that the required investment to develop the fields further is currently beyond its capacity.

Northern CEO Keith Bush commented in a company statement:

"The assets in the Netherlands have served the group well in providing cash inflow over the last six years, but the time is now right to conclude a sale. The completion of the sale will represent the achievement of the first of three key objectives we set ourselves in August this year. Our attention will now turn to realizing some of the significant latent value held within the company's Southern Adriatic licenses and the testing of our redevelopment play in Canada."

Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  GLA is 'Single Accumulation', Largest ... (Mar 27)
 -  Software Developer Mltech Completes Fi... (Mar 27)
 -  Aberdeen City Council Lifts Finance Ba... (Mar 27)
 -  Total-Borealis-Nova JV to Build Ethane... (Mar 27)
 -  Shell to Sell Gabon Onshore Assets for... (Mar 24)

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager, USA
Expertise: Project Management
Location: United States
Financial Analyst - Finance and Investor Relations
Expertise: Accounting|Financial Analyst|Legal
Location: Dallas, TX
Regional Project Controls Supervisor Job
Expertise: Project Controls|Project Management
Location: Amarillo, TX
search for more jobs

Brent Crude Oil : $50.75/BBL 0.09%
Light Crude Oil : $47.73/BBL 0.50%
Natural Gas : $3.05/MMBtu 0.97%
Updated in last 24 hours