Adriatic Sea Licenses Get an Exploration Upgrade

Northern Petroleum announced a significant resource upgrade of six of its drilling prospects in the Adriatic Sea.

Following a comprehensive independent technical appraisal by Blackwatch Petroleum Services Limited, the combined potential of the prospects has increased from 2.29 billion barrels of oil in place at a P50 probability to a potential of 6.03 billion barrels at a P10 probability.

Northern has a 100% interest in each licence. ATI holds a 50% commercial interest in the projects. With a 37.05% shareholding in ATI, Northern's total net beneficial interest is 1.569 to 4.132 billion barrels of prospective oil in place.

All the prospects are within licences F.R39.NP and F.R40.NP, an area of 1470 km2. The report does not cover a total further area of 2011 km2 which is covered by three further preliminary licence awards.

Northern is working towards agreements with both downstream companies and marine service companies towards forming arrangements to move forward with field appraisal and developments for the Rovesti and Giove fields within current financial resources.

Derek Musgrove, Managing Director of Northern, said, "This is an upgrade to the announcement made last year adding over 1 billion barrels to the independent estimates by Blackwatch P50 estimates, closer to the 3.5 billion barrels oil in place P50 exploration potential calculated by Northern and previously by Enterprise Oil Plc.

"I feel that this provides further substantiation of our view of the very considerable resource potential of the five licences and preliminary awards in the southern Adriatic."