Northern Petroleum Enters 2nd Phase of Work to Prepare for Production

Northern announces that its wholly owned subsidiary, Northern Petroleum Nederland B.V. ('NPN') has commenced the second phase of downhole work programs to prepare the five existing wells for production. This phase will involve operations at the Ottoland oil field and the Geesbrug and Grolloo gas fields. During the same operations the wells will undergo programs of reservoir formation stimulation through hydraulic fraccing. This has been highly successful in the basin and in the first phase of the program at the Brakel and Wijk en Aalburg gas fields. NPN believes it should be possible to increase initial production rates beyond the 4670 barrel of oil equivalent currently forecast.

Conceptual fracture design modelling on the wells was conducted by specialists, Fracture Technologies Limited, who successfully designed the fracture programs on the Waalwijk wells prior to Northern acquiring the field. The detailed design and operations are being carried out by Pinnacle Technologies Delft and Schlumberger Oilfield Services.

For the Brakel and Wijk en Aalburg gas field developments two mechanical refrigeration gas treatment plants are being fabricated by Toromont Energy Systems of Calgary and contracts have been placed for the construction and tie in of the gas to the distribution grid.