The new Drenthe III and IV licenses contain the Geesbrug and Grolloo gas discoveries respectively that Northern has secured under the terms of its previously disclosed agreements with NAM. NPN also has a commitment to NAM to drill two exploration wells on the Drenthe III license.
Derek Musgrove, Managing Director of Northern, stated:
"Northern is delighted to have received the approval for the last of the transfers related to the agreements made with NAM in August 2005. This is another milestone and with the imminent completion of the Waalwijk License transfer, Northern can now progress its gas operations in the Netherlands. The Ottoland oil field development is underway and there are the five other field developments in the pipeline. Add to those the implementation of plans for Waalwijk with an exploration program on four licenses it an exciting period ahead for Northern."
Based upon the 2006 report carried out by RPS Energy ('RPS'), a leading independent reservoir engineering consultancy group, the gross field reserves of the Geesbrug and Grolloo fields has been estimated as:
Proved Proved + Probable Proved + Probable + Possible Liquids 0.7 million bbls 1.8 million bbls 3.3 million bbls Gas 181 bscf 324 bscf 489 bscf
The license interests are subject to the participation of Energie Beheer Nederland B.V. ('EBN'), a State owned company, at a 40% level in the field developments in return for a pro-rata share of Northern sunk costs and a pro-rata share of all future costs of the joint ventures. In accordance with the April 2007 Heads of Agreement with Dyas BV ('Dyas'), NPN has agreed to transfer 25% of its post-EBN interest in these licenses to Dyas.
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