Northern Deems Ottoland a Success

Northern Petroleum Plc said that the Ottoland-1ST2 has successfully completed drilling operations. The well encountered 210 meters of Upper Bunter reservoir sandstone above the oil water contact in a near horizontal well section of 405 meters. This compares with the Ottoland-1 well drilled in 1987 which tested oil at a rate of 211 bopd over an interval of only 14 meters of Upper Bunter sandstone in a near vertical well.

Initial interpretations lead to an expectation of an increase in the hydrocarbon volumes in this part of the field.

The well is now being prepared for the running in hole of a slotted production liner following which the rig will be moved off site and the flow rate testing operations undertaken in the near future.

Derek Musgrove, Northern's Managing Director, stated:

"This was both a successful and challenging drilling operation. Though initial projections of increases to reserves should be treated with caution at this stage it is a great result for the patient shareholders and the Northern team alike."

The well reached a Total Measured Depth of 2993 meters (2176 meters True Vertical Depth) with an offset of 1300 meters from the surface location in a south-easterly direction. Drilling operations progressed successfully through horizontal to an angle of 97 degrees.

Northern Petroleum Nederland B.V. ('NPN') currently holds an 85% interest in the Ottoland field, the other partner in the license is Dyas B.V., a 100% subsidiary of the privately owned SHV Holdings NV. The NPN interest will reduce to 45% if the Minister of Economic Affairs designates Energie Beheer Nederland B.V. ('EBN'), a State owned company, as a 40% participant in the field in return for a pro-rata share of sunk costs and a pro-rata share of all future costs of the joint ventures.