Northern and its partners announce the start of production from the Geesbrug gas field. This brings into production reserves independently assessed at 165 Proven plus 142 Probable billion cubic feet ("bcf"). Geesbrug is the second of four gas and two oil fields in the onshore development program being undertaken by Northern and its partners. The gas from Geesbrug is being delivered via a dedicated pipeline to the NAM operated Coevorden-17 facilities.
Over the next few months gas production from Geesbrug initially will be 200,000 normal cubic metres (Nm³) a day (7.4million cubic feet per day (mmscfd)). After this initial evaluation period Northern expects to be able to significantly increase the production rate from the existing well and potentially drill several further production wells to efficiently produce the Geesbrug gas reserves. The detailed production and development plan will be determined after well pressure data from the initial production period has been analyzed. Until then the combined production net to Northern from Geesbrug and the recently commissioned Grolloo gas field, which came on-stream December 4, 2009, will be 6.7mmscfd (1150 boepd).
"Achieving production from the Geesbrug gas field is an important step forward for Northern. The Geesbrug Proven plus Probable reserves are 137bcf (23.8million boe) net to Northern. By way of comparison it is eleven to fifteen times the Grolloo reserves. This is the second new field to be brought into production following our highly successful 2008/9 fraccing programme. I am grateful to the on-site crews for their unstinting efforts in extreme weather conditions achieving this by year end.
"Northern's next critical milestone in The Netherlands is the installation of our own independent gas processing plants at Wijk en Aalburg and Brakel gas fields, south west Netherlands, as they are brought on-stream this summer.
"As we fully develop all six fields in our current Netherlands program, we intend to re-invest revenues in our portfolio of high impact exploration prospects in Italy and to re-drill and place into production three of the old discoveries in our large Utrecht licence in the southwest Netherlands. Combined, these discoveries are estimated at about 217 bcf (37.4million boe) in place, 60% to Northern. A local financial institution has modelled our Gasterra gas sales contract for us. The contract correlates strongly to Brent with a six month time lag. Given the strengthened Brent price in the last six months and the strong Brent futures price for the next six months, an average price of 0.24Nm³ for H1 2010 and 0.27Nm³ for H2 2010 would result. This is the start of a rewarding period of satisfying revenue growth for Northern," commented
Partners in the well are Northern Petroleum Nederland B.V. with 45%, EBN, the state oil company and Dyas B.V. with 40% and 15%, respectively.
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