Northern Petroleum PLC Italian onshore production acquisition (4693H)
08 June 2017 - 4:00PM
UK Regulatory
TIDMNOP
RNS Number : 4693H
Northern Petroleum PLC
08 June 2017
Northern Petroleum Plc
("Northern Petroleum" or "the Company")
Italian onshore production acquisition
Northern Petroleum (AIM:NOP), the AIM quoted oil and gas company
focusing on production led growth, announces the acquisition of
onshore production and development gas assets (the "Acqusition
Assets") in Italy from Rockhopper Mediterranean Limited, a wholly
owned subsidiary of Rockhopper Exploration Plc ("Rockhopper").
The Acquisition Assets comprise a 100 per cent. interest in the
Aglavizza production concession, which contains the producing
Civita gas field and associated processing facilities and pipeline
("Civita"), a local operations base, and the following production
concessions, containing suspended wells, and an exploration
permit:
-- Scanzano Concession (100% interest)
-- Torrente Celone Concession (50% interest)
-- Monte Verdese Concession (60% interest)
-- San Basile Concession (85% interest)
-- Civita Permit (100% interest)
Civita, which is tied into the national gas network, was
commissioned in late 2015 and averaged gas production of 130
barrels of oil equivalent per day during 2016. The field is
estimated to contain approximately 1 bcf of recoverable gas
according to internal estimates.
The Company is reviewing the potential for the redevelopment of
the Cupoloni field in the Scanzano Concession and the further
subsurface potential of the Vigna Nocelli field in the Torrente
Celone concession.
Northern Petroleum will assume the abandonment liabilities of
the production concessions, which, excluding Aglavizza and the two
fields with redevelopment potential, are estimated to be
approximately EUR3 million and forecast to be incurred over the
next ten years. Rockhopper will pay Northern Petroleum US$1.6
million on completion of the acquisition. This is subject to inter
alia Italian regulatory approval and is expected to occur later in
the year. The acquisition has an economic effective date of 1
January 2017.
Revenue and operating profit, excluding intra-group recharges,
depreciation and impairment charges, attributable to the
Acquisition Assets for the 12 months ended 31 December 2016 was
EUR1.1 million and EUR0.7 million respectively. The operating
profit from the Civita gas field was EUR0.9 million.
Keith Bush, Chief Executive Officer of Northern Petroleum,
commented:
"This acquisition is the Company's first step into the valuable
gas production market in Italy and complements our oil production
in Canada. The deal is directly in line with our production led
growth stategy, allows us to utilise our Italian tax position
efficiently and demonstrates our ability to continue to grow
production at little or no cost.
"We consider Italy to have further acquisition opportunities for
growth and will continue to evaluate additional assets to
supplement those acquired today, as we look to build an Italian
production and development business."
Prior to publication, certain information contained within this
announcement was deemed to constitute inside information for the
purposes of Article 7 of EU Regulation 596/2014. Upon publication
of this announcement, this information is now considered to be in
the public domain.
-Ends-
For further information please contact:
Northern Petroleum Plc Tel: +44 (0)20 7469 2900
Keith Bush, Chief Executive Officer
Nick Morgan, Finance Director
Stockdale Securities Limited (Nomad and Joint Broker) Tel: +44 (0)20 7601 6100
Antonio Bossi
David Coaten
FirstEnergy Capital LLP (Joint Broker) Tel: +44 (0)20 7448
0200
Jonathan Wright
FTI Consulting Tel: +44 (0)20 3727 1000
Edward Westropp
Note to Editors:
Northern Petroleum is an oil and gas company focused on
production led growth. The Company is undertaking a redevelopment
and production project in north west Alberta and has a broader
portfolio of exploration and appraisal opportunities in countries
of relatively low political risk, primarily Italy. Comprehensive
information on Northern Petroleum and its oil and gas operations,
including press releases, annual reports and interim reports are
available from Northern Petroleum's website:
www.northernpetroleum.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQBLGDLUBGBGRR
(END) Dow Jones Newswires
June 08, 2017 02:00 ET (06:00 GMT)
Cabot Energy (LSE:CAB)
Historical Stock Chart
From Apr 2024 to May 2024
Cabot Energy (LSE:CAB)
Historical Stock Chart
From May 2023 to May 2024