Northern Petroleum Encouraged by Grolloo Gas Flow

A maximum gas flow rate of 16 million standard cubic feet per day (MMSCFD) has been measured by Northern Petroleum Nederland B.V. (NPN) at its Grolloo gas field in the Drenthe IV license.

"If we were to assume a flow rate of 10 MMSCFD that would, based on a forecast gas price of €0.20 per normal cubic meter, generate an annual revenue for Grolloo of approximately €8million (£6.9million) net to Northern. This figure is based on NPN's 45% interest and a sustained gas production level supported by a 3480 psi flowing pressure measurement. Grolloo is one of the smaller of the six fields of approximately 93.2 million proven and probable barrels of oil equivalence being developed in the Netherlands by NPN. This is the fourth of a total of five wells to be hydraulically fractured in a very successful enhancement program, in which results have considerably exceeded expectations.

"The bottom-hole recorders will be retrieved later this month enabling confirmation of the reservoir pressure and final determination of the gas production profile for sales. The field is scheduled to be put on-stream in the fourth quarter of this year.

"Currently the well at the Geesbrug field is being prepared for hydraulic fracturing of the reservoir which has to date been very successful on the first four wells. At the Ottoland field, equipment and permissions are being procured to conduct a longer production flow test of both oil and gas," commented Derek Musgrove, Managing Director of Northern Petroleum Plc.