ERC Equipose (ERCE), the independent reservoir evaluation specialists, has largely completed its work ordered by Northern Petroleum Plc in November 2013 and has presented Northern with an interim report of its findings.
The findings relate to a resources review of the two permits held by the Company offshore Italy in the Southern Adriatic. The permits, F.R39.NP and F.R40.NP, contain the oil discoveries Rovesti and Giove respectively.
In advance of the full report, which is expected to be delivered in the New Year, ERCE has reported interim findings which indicate that the estimated recoverable oil attributable to the Adriatic Discoveries will be classified as 2C contingent resource, not 2P reserves.
Northern has historically booked 53.2 million barrels of 2P reserves to the Adriatic Discoveries, based on a report presented by Blackwatch Petroleum Services Limited in 2007. The total net 2C resources attributed to the Adriatic Discoveries by ERCE is 30.2 million barrels, with 25.8 million barrels attributed to the Giove discovery and 4.4 million barrels to the Rovesti discovery.
Northern has also been informed that the Italian Environmental Minister has requested further information from the Environment Ministry technical committee in relation to the proposed 3D seismic surveys over the Southern Adriatic permits.
Northern plans to continue to work with the Environment Ministry to obtain the approvals required to shoot the planned 3D seismic.
Keith Bush, Chief Executive Officer of Northern, commented:
“The Southern Adriatic permits have the potential for significant upside value to the Company in the short to medium term. Any work to further our understanding of the geological model or to successfully negotiate the Italian political environment will increase the chance of realising that upside for shareholders. Giove in particular, is a very interesting discovery which will demonstrate its worth through a credible development plan.”
Press Release, December 27, 2013