Northern Drills First Wells in Current Program in Alberta

Junior producer Northern Petroleum reported Wednesday that the first two wells of its current three-well drilling program in Alberta, Canada have been drilled to target depth.

Northern said its drilling rig will now move to the location of the third well, which will spud towards the end of this month, while a service rig is expected on the site of the first well shortly in order to perforate the well and test it. Production test results are expected for all three wells during the second half of October.

The current drilling program follows the firm's successful proof-of-redevelopment concept at Alberta's Virgo field in May, which saw two new wells and a well re-entry brought into production.

Elsewhere, the company confirmed that it has been awarded two new permits in Italy where political changes and an improved business environment are "giving more confidence" that Northern will be able to make progress with its southern Adriatic permits during this year.

Northern also reported its first-half results Wednesday that shows its total oil production for the six months to June 30 amounted to 13,629 barrels – generating revenue for the firm of $1.1 million (1H 2013: $0.4 million).

Northern CEO Keith Bush commented in a company statement:

"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."

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