RNS Number:2644N
Northern Petroleum PLC
08 July 2003


Embargoed 0700hrs Tuesday 8 July 2003


                             Northern Petroleum Plc


           Acquisition of UK Onshore Licence Interest in Weald Basin


Northern Petroleum (GB) Limited ("Northern") a wholly-owned subsidiary of
Northern Petroleum Plc is pleased to report that it has signed a farm-in
agreement with Sterling Resources (UK) Limited by which Northern will acquire a
5% interest in the onshore UK licence PEDL 070. The agreement covers costs
associated with the initial-stage drilling of the well Avington-2, which will
commence later this month. Northern will also earn an option to acquire a 5%
interest in adjacent licences PEDL 069 and PEDL 110.


The transaction is subject to the approval of the Department of Trade and
Industry.


Planning consent has been granted, and the construction of the Avington-2 site
close to Winchester is almost complete. The Operator, Pentex Oil UK Limited, has
assigned a rig and drilling will commence by mid-July.


The Avington prospect is a structure partly evaluated by the Avington-1 well,
drilled by Carless Exploration Limited in 1987. The well penetrated the Middle
Jurassic Great Oolite reservoir and log analysis, core and sidewall core data
indicate that a 32-metre oil column was encountered within the reservoir. Oil
shows were also seen within the overlying Cornbrash and Corallian sequences. The
well was not tested at the time.


The Avington-2 well will be drilled directionally across a fault from the
Avington-1 location into the crest of the prospect, approximately 40 metre-updip
of the Avington-1 well. The top of the Great Oolite is anticipated at a depth of
1,420 m. Given success a 600-metre horizontal section will be drilled and
completed for future production. The principal risk of the prospect is reservoir
productivity but fracturing can be expected to enhance permeability within this
part of the structure.


Derek Musgrove, Managing Director of Northern stated "This is the right
strategic opportunity for us. We will be involved in the drilling of a sizable
Great Oolite prospect and also benefit from an evaluation of the latest
drilling, completion and testing practices which will also be applicable to the
Sandhills prospect on Northern-operated PEDL 113 which we plan to drill in the
near future. We also gain an option to obtain an interest in two other licences
adjacent to our recently awarded 11th Round acreage PEDL 125 and PEDL 126 and
the Stockbridge oil field."


                                     -Ends-

For further information please contact,


Derek Musgrove, Managing Director
Northern Petroleum Plc
020 7743 6080


Graham Heard, Exploration Manager
Northern Petroleum Plc
020 7743 6080


Chris Roberts / Ben Simons
Hansard Communications
020 7245 1100 / 0771 309 0135






                      This information is provided by RNS
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