Northern Petroleum Granted UK Offshore Licence

Northern Petroleum has announced that it is among the successful applicants granted an offshore licence in the UK's 26th round of licencing, the company has announced.

The licence is given for part blocks 98/13 and 98/14, which are adjacent to an existing licence off the Isle of Wight, PEDL 240, held by Northern. Northern Petroleum subsidiary, NP Solent Ltd. will act as the operator for the new licence with a 62.5 per cent stake. Magellan Petroleum (UK) Ltd. (22.5 per cent), EnCore Oil Plc (7.5 per cent), Montrose Industries Ltd. (5 per cent) and Oil & Gas Investments Ltd. (2.5 per cent) hold the remaining stakes.

"We are very pleased to have been offered part blocks 98/13 and 98/14," Derek Musgrove, Managing Director of Northern said. "This allows the joint venture to evaluate the oil and gas potential of the mapped well defined prospect that extends from the Isle of Wight into the English Channel."

Mr. Musgrove also said that the companies involved would take every care to protect the environment of the offshore Isle of Wight area.

"This award is the result of competitive bids under the 26th Licensing Round. Northern recognises that the prospect is in an Area of Outstanding Natural Beauty (AONB) and a Heritage Coast," he said. "At Northern we well understand the attendant challenges that are posed in conducting field operations in an environmentally safe and responsible manner. To date, Northern has an exemplary track record for its drilling operations, the most recent of which was Markwells Wood-1, completed in January 2011, which is currently undergoing flow testing operations in West Sussex."

There is no obligation to drill under the terms of the licence.