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<strong>Northern</strong> <strong>Petroleum</strong> <strong>Plc</strong><br />
AGM<br />
June 29 th 2012<br />
Slide 1
Activities During The Period Since Last AGM<br />
In parallel with the mid-2011 downward reserve adjustment an evaluation<br />
of production data to date and reprocessing and remapping of 3D<br />
seismic over all areas in The Netherlands.<br />
A summary so far is:<br />
- Installation of fluid lifting assistance at Wijk en Aalburg<br />
successful.<br />
- Installation of booster compression at Waalwijk successful.<br />
- Project for two new wells on existing pads at Geesbrug initiated.<br />
- Ottoland production test completed and in review.<br />
- Analysis of other fields in progress.<br />
- Some positive signs of reduction in pressure decline at Brakel<br />
and Grolloo.<br />
Slide 2
Activities During The Period Since Last AGM<br />
€3.2 million sale of <strong>Northern</strong>’s share of the Vinkega gas discovery and<br />
identification of the on-trend Diever West prospect on the adjacent<br />
Drenthe III licence.<br />
Southwest Netherlands shale oil project upgraded by consultants.<br />
Permissions gained in Italy for drilling La Tosca gas prospect and 2D<br />
seismic programme, now completed, in the highly prospective southern<br />
Adriatic Sea.<br />
Zaedyus oil discovery in the offshore of the French Department of<br />
Guyane, seen as a possible new oil province.<br />
Confirmation and production testing of the Markwells Wood oil<br />
discovery, suspended and now being assessed for further actions.<br />
Shell decision not to fund drilling of a well west of Sicily. Discussions<br />
with possible new partner.<br />
Slide 3
Corporate Overview<br />
2010<br />
Production (boe): 0.44<br />
Gross Revenue:<br />
€15.0 m<br />
Production Costs:<br />
€ 4.9 m<br />
Net Administration costs:<br />
€ 4.6 m<br />
Profit from Operations<br />
€ 1.5 m<br />
Profit € (1.2 m)<br />
Cash in hand at year end<br />
€21.4 m<br />
2011<br />
0.58<br />
€24.5 m +<br />
€ 5.3 m +<br />
€ 3.7 m -<br />
€11.0 m +<br />
€ 6.2 m +<br />
€29.8 m +<br />
Slide 4
Reserves<br />
Slide 5
Risk Management<br />
‣ Geographical and geological risks are reduced by the diversity by country<br />
and basin.<br />
‣ Risk is further reduced by mainly investing in basins with proven economic<br />
hydrocarbon production.<br />
‣ All activities are governed by the ratio of the risk of success and failure, and<br />
the ratio of expected reward to cost of the initial investment. These risks are<br />
managed by keeping a low project entry cost relative to the cash on hand<br />
and existing production revenues.<br />
‣ Deploy very high standards of technical and management expertise<br />
and integrity are recognised as essential.<br />
‣ Commitment to the highest standards of environmental and safety practice.<br />
Slide 6
The <strong>Northern</strong> <strong>Petroleum</strong> Business Model<br />
Slide 7
<strong>Northern</strong>’s Activities<br />
‣Interest in 2 producing oil<br />
fields<br />
‣Tested oil discovery<br />
‣Further oil discoveries<br />
and exploration prospects<br />
‣6 producing gas fields<br />
‣2 oil fields awaiting development<br />
‣2 currently planned exploration wells<br />
‣Shale oil potential<br />
‣4 core areas offshore<br />
‣Proven hydrocarbon systems<br />
‣La Tosca-1 onshore well<br />
planned for 2012<br />
‣2011 discovery of<br />
potential new oil province<br />
‣1.25% interest in the<br />
offshore licence operated<br />
by Shell. Tullow Oil and<br />
Total are partners.<br />
‣3-4 well appraisal and<br />
exploration programme<br />
2012/13<br />
Slide 8
<strong>Northern</strong> <strong>Petroleum</strong><br />
‣ Licences and Applications that are Material<br />
‣ Low cost Operator in Proven <strong>Petroleum</strong> Provinces<br />
‣ Focussed on adding value to Shareholders by a Clear Business Model<br />
‣ No Indebtedness<br />
‣ Exemplary Environmental and Safety Performance<br />
Slide 9
<strong>Northern</strong> <strong>Petroleum</strong><br />
Slide 10
The AGM resolutions<br />
Slide 11
Resolution 1 - Ordinary<br />
“To receive the report of the Directors and the audited accounts for<br />
the year ended 31 December 2011.”<br />
<strong>Northern</strong> <strong>Petroleum</strong> <strong>Plc</strong> – AGM Resolutions Slide 12
Resolution 2 - Ordinary<br />
“To re-appoint KPMG Audit <strong>Plc</strong> as auditors and to authorise the<br />
Directors to fix their remuneration.”<br />
<strong>Northern</strong> <strong>Petroleum</strong> <strong>Plc</strong> – AGM Resolutions Slide 13
Resolution 3 - Ordinary<br />
“To re-elect G L Heard (who retires from office in accordance with<br />
Article 108 of the Company's Articles) as a Director of the<br />
Company.”<br />
<strong>Northern</strong> <strong>Petroleum</strong> <strong>Plc</strong> – AGM Resolutions Slide 14
Resolution 4 - Ordinary<br />
“To elect Dr R W Gaisford (who retires from office in accordance<br />
with Article 113 of the Company's Articles) as a Director of the<br />
Company.”<br />
<strong>Northern</strong> <strong>Petroleum</strong> <strong>Plc</strong> – AGM Resolutions Slide 15
Resolution 5 - Ordinary<br />
“To elect M L Eaton (who retires from office in accordance with<br />
Article 113 of the Company's Articles) as a Director of the<br />
Company.”<br />
<strong>Northern</strong> <strong>Petroleum</strong> <strong>Plc</strong> – AGM Resolutions Slide 16
Resolution 6 - Ordinary<br />
“To authorise the Directors, pursuant to and in accordance with section 551 of<br />
the Companies Act 2006 (the “Act”) to exercise all powers of the Company to<br />
allot ordinary shares in the capital of the Company and grant rights to<br />
subscribe for or convert any security into ordinary shares up to a maximum<br />
aggregate nominal value of £1,192,075 (being approximately 25% of the<br />
Company’s issued share capital as at the date of this notice), provided that<br />
such authority shall expire at the conclusion of the next Annual General<br />
Meeting of the Company, except that the Directors may, before such expiry,<br />
make offers or agreements which would or might require ordinary shares to<br />
be allotted or rights to be granted after such expiry and allot ordinary shares<br />
or grant rights in pursuance of such offers or agreements.”<br />
<strong>Northern</strong> <strong>Petroleum</strong> <strong>Plc</strong> – AGM Resolutions Slide 17
Resolution 7 - Special<br />
“To authorise the Directors, pursuant to and in accordance with section 570<br />
and 573 of the Act, to allot equity securities (as defined in section 560 of the<br />
Act) for cash as if sub-section 561 of the Act did not apply to the allotment<br />
of equity securities pursuant to the authority conferred on them under<br />
section 551 of the Act up to the aggregate nominal value of £476,830 (being<br />
approximately 10% of the Company’s issued share capital as at the date of<br />
this notice), such power to expire on the earlier of the conclusion of the next<br />
Annual General Meeting of the Company and 15 months after the date of the<br />
resolution (but so as to enable the Company, before the expiry of such<br />
power, to make offers or agreements which would or might require equity<br />
securities to be allotted after such expiry and to enable them to allot equity<br />
securities for cash pursuant to such offers or agreements as if the power<br />
conferred thereby had not expired).”<br />
<strong>Northern</strong> <strong>Petroleum</strong> <strong>Plc</strong> – AGM Resolutions Slide 18
Resolution 8 - Special<br />
“To authorise the Company, generally and unconditionally, to make market<br />
purchases (within the meaning of section 693(4) of the Act) pursuant to and<br />
in accordance with section 701 of the Act of fully paid ordinary shares in the<br />
capital of the Company upon and subject to the following conditions but<br />
otherwise unconditionally:<br />
• maximum of 4,768,300 shares;<br />
• maximum price of 105% of the average of the middle market quotations for<br />
an ordinary share for the five business days immediately preceding the day<br />
on which such ordinary share is contracted to be purchased;<br />
• minimum price shall be the nominal value of such ordinary share; and<br />
• authority to expire earlier of i) next AGM or ii) 15 months.”<br />
<strong>Northern</strong> <strong>Petroleum</strong> <strong>Plc</strong> – AGM Resolutions Slide 19
The AGM is now closed<br />
Slide 20
Post AGM presentation<br />
Slide 21
The Netherlands<br />
Slide 22
The Netherlands<br />
‣6 producing gas fields<br />
‣2 oil fields to be developed<br />
‣2 development wells to be drilled<br />
‣2 exploration wells to be drilled<br />
‣Shale oil potential<br />
Slide 23
West Netherlands Basin - Shale Oil Potential<br />
20-30 billion of barrels of oil in place<br />
Rock characteristics compare very<br />
favourably with US analogues<br />
Eagle Ford<br />
Utica Shale<br />
Report Concludes:<br />
Good TOC<br />
Good porosity<br />
Good permeability<br />
Slide 24
The Netherlands – Seismic Reprocessing<br />
Drenthe III Licence & Oosterwolde<br />
Oosterwolde licence<br />
Seismic reprocessing project<br />
merging seven 3D surveys<br />
commenced in April 2011 with<br />
completion due September 2012<br />
Geesbrug fast track delivered<br />
November 2011<br />
Edited input area = 1250 sqkms<br />
Drenthe III licence<br />
PrSDM output area = 1060 sqkms<br />
Slide 25
Geesbrug field – two development wells planned<br />
Base Zechstein Depth Map<br />
Tiendeveen-1<br />
Geesbrug-3 well trajectory<br />
Geesbrug-1<br />
Geesbrug field outline<br />
Geesbrug-2 well trajectory<br />
Slide 26
Geesbrug-2 development well trajectory<br />
Well designed as a<br />
long reach 1,000<br />
metre inclined<br />
trajectory for<br />
planned multi-stage<br />
frac<br />
Slide 27
Drenthe III Production Licence<br />
Prospect inventory pre seismic reprocessing<br />
R8<br />
R7<br />
R5<br />
Eesveen North<br />
Eesveen<br />
R1<br />
0<br />
Diever West<br />
Diever East Boterveen West<br />
R6<br />
Eesveen East<br />
Eesveen SE<br />
R9<br />
R4<br />
R2 North<br />
R3<br />
R2<br />
R1<br />
Boterveen<br />
Lhee West<br />
Lhee South<br />
Gas field<br />
Upthrown prospect<br />
Downthrown prospect<br />
Lheebroek<br />
Lhee North<br />
Lhee<br />
NW<br />
NE<br />
26 prospects mapped<br />
SW<br />
0 5<br />
kms<br />
Base Zechstein Depth Structure<br />
SE<br />
Geesbrug<br />
Slide 28
Diever West prospect (30 Bcf potential) and relationship to<br />
Vinkega gas field<br />
VKG- 1<br />
A<br />
Vinkega<br />
R7<br />
Diever West<br />
B<br />
A<br />
Vinkega R7 Diever West<br />
B<br />
Slide 29
The Netherlands – 3D and 2D Seismic Reprocessing<br />
Papekop, Andel V, Utrecht and Engelen<br />
Seismic reprocessing project<br />
merging five 3D surveys plus<br />
reprocessing 960 km 2D<br />
seismic commenced in April<br />
2011 with completion due July<br />
2012<br />
Papekop fast track delivered<br />
July 2011<br />
Slide 30
The Netherlands – 2D to 3D seismic - uplift in data quality<br />
2D seismic section<br />
Slide 31
The Netherlands – 2D to 3D seismic - uplift in data quality<br />
3D seismic section<br />
Slide 32
1 km<br />
Papekop 3D – original processing in time<br />
TWO-WAY TIME (second)<br />
1 km<br />
Slide 33
DEPTH (metre)<br />
1 km<br />
Papekop 3D – fast track pre-stack depth migration processing<br />
Slide 34
DEPTH (metre)<br />
1 km<br />
Papekop 3D – fast track pre-stack depth migration processing<br />
TOP<br />
RESERVOIR<br />
Slide 35
Vlist structure – planned well on 47 bcf target<br />
B<br />
A<br />
B<br />
A<br />
• Southern extension of HST-2B tight gas discovery<br />
• Min. closure equivalent to gas water contact in HST-2B<br />
• Max closure to ~2300 m ss matches spill point from<br />
Ottoland and into Willeskop fault block<br />
Slide 36
United Kingdom<br />
Slide 37
United Kingdom<br />
‣ Interest in 2 producing<br />
oil fields<br />
‣ Tested oil discovery<br />
‣ Further exploration<br />
Slide 38
UK Operations<br />
Markwells Wood – Wellsite and access track<br />
Slide 39
Weald Basin<br />
1987 2D seismic – 1987 original processing N<br />
S<br />
STORRINGTON OILFIELD<br />
N<br />
Slide 40
Weald Basin<br />
1987 2D seismic - 2008 reprocessing giving improved resolution<br />
S<br />
STORRINGTON OILFIELD<br />
N<br />
Slide 41
P1916 & PEDL 240 – Isle of Wight<br />
Prospect – Sherwood sandstone target (reservoir at Wytch farm)<br />
Prospect target<br />
<br />
B<br />
A<br />
B<br />
A<br />
Sherwood sandstone depth map<br />
Sherwood target<br />
<strong>Northern</strong> <strong>Petroleum</strong> (GB) Ltd, PEDL 240: TCM & OCM, 9th December 2011<br />
Slide 42
Italy<br />
Slide 43
Italy<br />
‣4 core areas offshore<br />
‣Proven hydrocarbon systems<br />
‣La Tosca-1 onshore well<br />
planned for July/August 2012<br />
Slide 44
Longastrino permit – La Tosca prospect<br />
Slide 45
Longastrino permit– Schematic Geological Cross Section<br />
Projected Longastrino permit<br />
• Series of thrust anticlinal trends with backthrusts, truncations & onlaps<br />
• Alfonsine gas field (300 Bcf) only 2 Km to the south<br />
• Ravenna gas field (185 Bcf) 5 Km to the south-east<br />
• Plio-Pleistocene proven targets, Miocene probable targets<br />
Slide 46
La Tosca wellsite<br />
Rig contract in place and well spud planned for late July/August<br />
Orca Exploration to earn up to 75% by funding drilling and testing<br />
Slide 47
ITALY – Offshore Core Areas<br />
Large Reserve Potential<br />
1. West of Sicily<br />
Thrust Belt<br />
4<br />
2. Sicily Channel<br />
3. Biogenic and<br />
Thermogenic<br />
gas offshore<br />
Sicily and in the<br />
Taranto Gulf<br />
4. Southern<br />
Adriatic<br />
1<br />
3<br />
2<br />
Slide 48
ITALY – Offshore Core Areas<br />
Large Reserve Potential<br />
1. West of Sicily<br />
Thrust Belt<br />
4<br />
2. Sicily Channel<br />
3. Biogenic and<br />
Thermogenic<br />
gas offshore<br />
Sicily and in the<br />
Taranto Gulf<br />
4. Southern<br />
Adriatic<br />
1<br />
3<br />
2<br />
Slide 49
Southern Adriatic – Fields and Prospects<br />
53.16 million barrels of Probable Reserves<br />
in Rovesti and Giove discoveries<br />
Real potential in the exploration upside<br />
estimated at 8.5 billion barrels of oil in<br />
place and 10 TCF of gas in place<br />
Slide 50
2011 2D Seismic Acquisition campaign brief summary<br />
• Completed within timeframe (6 days)<br />
• Adherence to all Ministry (including environmental)<br />
prescriptions<br />
• No issues with fishing / shipping etc<br />
• Full QHSE compliance – 3 vessels - no incidents or<br />
accidents<br />
• Within budget<br />
• Achieved objectives – infill dataset and permit work<br />
commitment<br />
Slide 51
2011 2D seismic acquisition<br />
Area of operation / manoeuvre / constraints<br />
• 1 nautical mile safety<br />
exclusion zone for<br />
Aquila FPSO Betatank II<br />
• Eni Concession<br />
(green outline)<br />
•12 nautical miles from<br />
coast protected area<br />
•Italy–Albania border<br />
Slide 52
Rovesti – structural mapping incorporating 2011 2D seismic<br />
S<br />
A<br />
A’<br />
N<br />
11.725 km 2<br />
Areal extent<br />
based upon ODT<br />
A’<br />
Oil presence in<br />
Rovesti from<br />
2370m TVDSS<br />
10km<br />
A<br />
Spill points =<br />
2562m TVDSS,<br />
Oil Down To<br />
(ODT) = 2562m<br />
from log data<br />
Slide 53
Rovesti – 1994 2D seismic - reprocessed from paper copy<br />
S<br />
N<br />
5km<br />
Slide 54
Rovesti – improved resolution 2011 2D seismic<br />
S<br />
N<br />
Re-sedimented<br />
carbonate wedge<br />
or basin floor<br />
turbidites?<br />
5km<br />
Slide 55
Mercurio prospect– 1994 2D seismic reprocessed from paper copy<br />
SW<br />
A<br />
NE<br />
A’<br />
Mercurio<br />
A’<br />
5km<br />
A<br />
Slide 56
Mercurio prospect – 2011 improved resolution 2D seismic<br />
SW<br />
A<br />
NE<br />
A’<br />
Mercurio<br />
A’<br />
5km<br />
A<br />
Slide 57
Cygnus Prospect<br />
SW<br />
Medusa discovery<br />
Cygnus prospect – located<br />
down dip of platform margin –<br />
“toe of slope” location.<br />
Seismic character change<br />
beneath “Top Carbonate” and<br />
possible lateral extension<br />
basinwards<br />
NE<br />
A<br />
A’<br />
Top Pliocene<br />
A’<br />
Top Messinian<br />
Top Carbonate<br />
Cygnus<br />
Top Jurassic/ dolomites?<br />
Top Triassic?<br />
A<br />
Cygnus Prospect structural setting analogous to Brae fields, Viking Graben<br />
Slide 58
Cygnus prospect – improved resolution 2011 2D seismic<br />
S<br />
N<br />
A<br />
A’<br />
Top Messinian<br />
Top Carbonate<br />
Top Jurassic/ dolomites?<br />
A’<br />
Top Triassic?<br />
Cygnus prospect – located down dip<br />
of platform margin – “toe of slope”<br />
location. Seismic expression at top<br />
Carbonate level, with amplitude<br />
brightening directly above.<br />
A<br />
Slide 59
Permit areas for 3D seismic acquisition planned for 2012<br />
Survey 1<br />
Survey 2<br />
392km 2 468km2<br />
•Two 3D surveys planned<br />
for 2012<br />
• New environmental<br />
impact assessment<br />
submitted early 2012<br />
•Potential availability of<br />
vessel in October 2012<br />
•Subject to receiving<br />
timely authorizations<br />
from the Italian Ministry<br />
Total = 860km 2<br />
Slide 60
Guyane<br />
Slide 61
Offshore Guyane - Zaedyus Oil Discovery<br />
Opens up new oil province – Rapid follow-up in 2012<br />
Northpet Investments Limited has 2.5% interest*, Tullow Oil 27.5%, Shell 45%, Total 25%<br />
The first ever deep water well was also the first significant<br />
discovery in the region. There is proven upside potential in two<br />
formations.<br />
The second phase of exploration and appraisal will start in July<br />
2012 with the drilling of a Zaedyus delineation well, followed by<br />
an exploration well on a prospect defined by the existing 3D<br />
seismic survey.<br />
Additional 3D seismic surveys are planned to commence July<br />
2012.<br />
*<strong>Northern</strong> owns a 50% equity interest in Northpet Investments Limited<br />
Slide 62
Future near term plans<br />
‣ <strong>Northern</strong> <strong>Petroleum</strong> continues to identify and appraise new projects in conjunction with<br />
progressing on its trading activities<br />
‣ Field operations to optimise production rates in the Netherlands<br />
‣ Analysis of long term test of Ottoland to progress development options<br />
‣ New production wells at Geesbrug gas field in Netherlands<br />
‣ Two exploration wells planned in the Netherlands<br />
‣ Papekop oil field development options being progressed<br />
‣ West Netherlands Basin shale oil potential, partner being sought<br />
‣ Acquire two 3-D seismic surveys in Southern Adriatic Q4 2012<br />
‣ Drilling of La Tosca prospect in the Longastrino permit, spud July/August 2012<br />
‣ Post oil production test analysis at Markwells Wood<br />
‣ Appraisal/development well at Baxters Copse<br />
‣ Appraisal and exploration wells plus more 3D seismic offshore Guyane<br />
Slide 64
End of Post AGM Presentation<br />
Slide 65