Northern Petroleum Agrees Cascina Alberto Farm-Out with Shell
Junior explorer and producer Northern Petroleum announced Thursday that has agreed to farm out an 80-percent equity interest in the Cascina Alberto permit, in the Po Valley onshore Italy, to Royal Dutch Shell. In return, Shell will pay Northern $850,000.
Northern said that the deal will also see Shell pay for the costs of the exploration campaign on the permit, which will include a carry on the acquisition of any new seismic data up to a cost of $4 million and a carry on any exploration well until the well costs reach $50 million. Shell will also have a pre-emptive right over Northern's remaining interest in the Cascina Alberto permit in the event of any change in control at the asset or
Northern CEO Keith Bush commented in a company statement:
"This farm in demonstrates the value inherent in Northern's Italian asset portfolio. Northern will continue to progress its permits and applications with the Italian authorities and partner with companies with larger resources, where appropriate, to maximize their value.
"We look forward to working with Shell as we explore the potential of the Cascina Alberto permit."
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