Northern Starts Extended Well Test at Markwells Wood

Northern Petroleum has started operations for an extended well test of the Markwells Wood oil discovery in West Sussex. The test will enable Northern Petroleum and its joint venture partners - Magellan Petroleum (UK) Limited and Egdon Resources U.K. Limited - to evaluate the potential and scheme for future development of the Markwells Wood oil accumulation.

The Workover rig arrived on site on Tuesday, September 6, 2011. The production string is being installed prior to the installation of testing facilities to enable testing operations to begin in early October 2011.

Production testing may take 40 days and will utilize a Linear Reciprocal Pump that has a lower height profile, lower noise emission and a smaller footprint than the more traditional 'Nodding Donkey' pump.

Depending on the results of those initial tests, acid stimulation may be applied to the reservoir formation.

Interests in License 126 are as follows:

• Northern Petroleum (GB) Limited 50%
• Magellan Petroleum (UK) Limited 40%
• Egdon Resources U.K. Limited 10%

Derek Musgrove, the Managing Director of Northern Petroleum stated, "Oil was encountered during the drilling of Markwells Wood towards the end of 2010. A core sample in the Great Oolite reservoir formation was successfully recovered and subsequently subjected to many laboratory tests. These established petrophysical characteristics of the formation and preferred stimulation treatments if required. Following completion of this work, the current program was designed and contracts issued."