NPN has been informed that there will be a 40% State participation in the license, with NPN the holder of the remaining 60%. Such participation will be on the basis of being a fully paying partner in all respects from license award, and payment of applicable back costs.
During the application process, further work has been undertaken and audited by RPS Energy resulting in an upward revision of gross proven plus probable recoverable reserves from those previously announced to 39.4 Bscf of gas and 12.2 million bbls of oil. (NPN's share is 23.7 Bscf and 7.3 million bbls of oil). This is an increase of 1.5 million bbls of oil and brings the total Netherlands reserves to 56 million boe. (14.2 million bbls and 242.6 Bscf).
Northern has also been advised that the Ministry has approved the transfer of the Papekop Production License from NPN, the original applicant, to the Company's wholly owned Dutch subsidiary, NP Netherlands B.V.
Derek Musgrove, MD of Northern, stated:
'It has been a process requiring a patient understanding of the Netherlands regulations and laws.
We now embark upon an intense period of work to bring the Papekop field on-stream. We can now confirm various contractual relationships which have awaited this event and thank those that have given their full support during what has often been a time of waiting.
We now go forward with financing in place from the recent placing of £20 million gross and the project finance facility of up to Euro 40 million approved by the Credit Committee of Standard Bank Plc.'
In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and signed off by the Exploration Manager of Northern, Mr. Graham Heard BSc (Hons), who has over 30 years experience as a petroleum geologist. The reserve estimates reported are based on the joint reserve and resource definitions of the Society of Petroleum Engineers, the World Petroleum Congress and the American Association of Petroleum Geologists.
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