FULL CYCLE OIL COMPANY
SEPTEMBER 2012
NORTHERN PETROLEUM PLC
INTERIM RESULTS
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in connection with, any contract with Northern Petroleum relating to any securities. Any decision regarding any proposed purchase of shares in
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Slide 1
Summary
Slide 2
Valuable asset and reserve positions acquired at low entry costs
Drilling development wells in core production base in The Netherlands
Exploration upside in Italy and Guyane
Company well funded with no debt finance
Exemplary environmental and safety performance
The Northern Value Proposition
Shares in issue as of 30th June 2012 95,365,660
Share Price at close 7th September 2012 66p
Market Capital £62.5 million
Less Cash in hand at 30th June 2012 £22.4 million
____________
Market Valuation of Assets £40.1 million
____________
Slide 3
2P Reserves (in barrels of oil equivalent)
Slide 4
Guyane - New Oil Province 17.85 million
Tullow has estimated over 1
billion bbl. potential
* On completion of agreement
with Azimuth, Northern’s net
Probable Reserves will be
45.2 million boe
Northern’s Business Model and Strategy
Slide 5
DEVELOPMENT
PRODUCTION ACQUIRE
EXPLORATION
FARM OUT TRADE
TRADE
CASH
Requirement for new
equity is kept low.
Opportunity to
realise value for
Shareholders
reviewed at
each phase of
the cycle.
Record of
Progress
Slide 7
A full cycle mature independent oil company.
Long record of good management, business integrity and
acknowledged environmental practice.
Commercial flexibility for portfolio projects to be purchased
or sold at any time within a clear business model.
Projects funded by strong financial management with a
commitment to project expenditures matched by revenue
and cash positions.
Low cost Operator in proven petroleum provinces.
Focussed on material projects.
Internally staffed with a record of continuity matching the long
term nature of the business.
Northern continues without debt and maintains a good
working capital surplus. Cash of €28 million at the end of June
2012.
Competitive Advantages
Northern’s Activities Summary
Slide 8
4 wells follow up 2011
discovery of new offshore
oil province
Shell, Tullow Oil and Total
are partners
6 producing gas fields
2 new production wells at Geesbrug
2 oil fields awaiting development
2 currently planned exploration wells
Shale oil potential
3 core areas offshore
Over 3 billion barrel potential in
proven hydrocarbon systems
Interest in 2 producing oil fields
Testing oil discovery
Further oil discoveries and
exploration prospects
The Netherlands: Six Producing Gas Fields, Exploration & Shale Oil Potential
Slide 9
2 gas development wells in 2012/13
Development planning for 2 new fields
A NuTech Report was completed in 2012.
This indicated a shale oil potential of 30
billion barrels in place. The rock
characteristics are favourable with good
porosity and permeability.
Net proven and probable reserves:
79.2 billion cubic feet of gas
4.2 million barrels of oil
Italy – Offshore Core Areas: Large Reserve Potential
Slide 10
1. Sicily Channel *
C.R146.NP permit
Vesta Prospect – 613mmbbls (**)
2. Offshore Sicily Gulf of Taranto *
Biogenic & Thermogenic gas
3. Southern Adriatic Sea
F.R39.NP permit
Rovesti Field – 33.56mmbls (2P)
Cygnus Prospect – 484mmbls (**)
Corvus Prospect – 406mmbls (**)
• Areas 1 and 3 are outside 12 nautical miles of the
recent changes to Italian law
** Internal estimate of mean prospective resources
1
2
3
Guyane
Slide 11
Northpet Investments Limited has 2.5% interest*,
Tullow Oil 27.5%, Shell 45%, Total 25%
In 2011, Zaedyus-1 was the first ever deep water
well in the region.
The second phase of exploration and appraisal
is a 4 well drilling programme which started in
July 2012 with drilling the second well in the
same fan system as Zaedyus to be followed by
an exploration well on a prospect defined by the
existing 3D seismic survey.
Northern is fully funded and committed to the 4
well programme.
* Northern owns a 50% equity interest in Northpet Investments Limited
Quality Partners
THE NETHERLANDS EBN
Nederlandse Aardolie Maatschappij (NAM – SHELL/EXXON)
WINTERSHALL
TOTAL
ITALY AZIMUTH
GUYANE TULLOW OIL
SHELL
TOTAL
UK IGAS ENERGY
Slide 12
The Netherlands: Market & Operational Update
Expansion of production at Geesbrug.
Permitting of Papekop and Ottoland sites.
Drilling material exploration wells at Diever West and Vlist.
Taking production up from the current forecast.
Slide 13
Italy: Market & Operational Update
Concentrating on the Southern Adriatic Sea assets as awarded. In this respect the attitudes of the
new Monti government are encouraging.
Undertake 3D seismic survey on licence F.R39.NP covering 2 prospects and the Rovesti field.
Find either project company, equity or industry partner to drill 3 to 7 key and Company changing
exploration wells, including the 484 million barrel mean prospective resources Cygnus prospect,
the 406 million barrel mean prospect resource Corvus prospect and the Rovesti field (P2
Reserves 33.6 millions bbls.).
Slide 14
Guyane: Market & Operational Update
Prepared and funded to complete four well appraisal and well exploration programme in this very
high potential new oil province.
After drilling our options including sale, will be considered as action for realisation of
shareholder value.
The June 2012 offer by Total for Wessex implied a value around $90 million.
Slide 15
2013 Activity Timeline 1 (provisi)
Slide 16
Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec
NetherlandsGeesbrug-2 well (drill and complete)
Geesbrug-3 well (drill and complete)
Diever West well (drill and test)
Reprocessed seismic interpretation
Vlist prospect evaluation
Exploration opportunity evaluation
Ottoland development planning
Papekop development planning
Wijk en Aalburg sidetrack evaluation
Brakel sidetrack evaluation
Brakel compression installation
Quarter 4
20132012Quarter 4 Quarter 1 Quarter 2 Quarter 3
Provisional Activity Timeline
2013 Activity Timeline 2 (provisional)
Slide 17
Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec
ItalySouthern Adriatic 3-D seismic acquisition
Seismic processing
Seismic interpretation
Well location determinations
Guyane (Northern's projection)Well 2 drilling and testing
Well 3 drilling and testing
Well 4 drilling and testing
Additional 3-D seismic acquisition
OtherOngoing new business activities
Quarter 4
20132012Quarter 4 Quarter 1 Quarter 2 Quarter 3
Provisional Activity Timeline - continued
2012 Corporate Interim Results Overview
Slide 18
AIM Listed Company: (AIM:NOP) Shares are approximately 66p and 95,365,660 in issue as at 7th September 2012
with 28.23% not currently in public hands.
Interim 2012
million
Interim 2011
million
Year 2011
million
Production (boe) 0.19 0.33 0.58
Revenue € 8.7 € 3.0 €24.5
Production Costs € 2.0 € 2.7 € 5.3
Profit from Operations € 2.2 € 1.01 €11.0
Profit for the period (pre tax) € 2.4 € 0.7 €10.5
Cash in hand at period end €28.2 €23.9 €29.8
Summary
Slide 19
Valuable asset and reserve positions acquired at low entry costs
Drilling development wells in core production base in The Netherlands
Exploration upside in Italy and Guyane
Company well funded with no debt finance
Exemplary environmental and safety performance
Board of Directors
Slide 20
Richard Latham
Chairman
Richard Latham was
appointed Non-Executive
Chairman during June 1999
and has been a member of the
Board since 1995. he is also
Non-Executive chairman of
Strategic Natural resources
Plc, Chairman of Ascension
Holdings Limited and a
number of its associated
companies and Chairman of
Obsidian Minerals Limited.
Richard holds an MBA degree
from Cranfield and has spent
most of his working life in the
City; initially as an Investment
manager and for over 26 years
with companies in the
upstream oil and gas industry.
Derek Musgrove
Managing Director
Derek Musgrove has held the
position of Managing Director
since 1999. He has previously
held senior managerial or
board positions with RTZ Oil &
Gas Limited, Candecca
Resources Plc, Plascom Plc,
Anglo Scandinavian
Petroleum Plc and Bass
Resources Limited. He was
also a consultant to a number
of oil and gas companies
particularly in the areas of
management, new projects
and trading of oil and gas
properties.
Graham Heard
Technical & Exploration
Director
Graham Heard was appointed as
Exploration and Technical Director
in May 2007, having been the
Exploration Manager of Northern
for the previous four and a half
years. He is a former Chairman
(1991) of the Petroleum Exploration
Society of Great Britain. Graham
has over 35 years’ experience as a
petroleum geologist, beginning his
career with Arco and then gaining
extensive international experience
with independents Siebens Oil and
Quintana Petroleum. He
subsequently held various
executive positions with Sovereign
Oil & Gas Plc, Neste Production
Limited and Sands Oil & Gas Plc.
Maurice Eaton
Group Operations Director
Maurice Eaton was appointed as
Director of Group Operations in
June 2011, joining the Board in
September 2011, having been
Technical Manager – Operations
since October 2009 and first
employed in 2007 as a Principal
Petroleum Engineer. He has over
30 years experience and holds a
Masters in Petroleum Engineering
from Imperial College. Starting his
career as a consultant with ERC,
gaining international experience
with Enterprise Oil, Amerada
Hess and Svenska Petroleum.
Maurice has had managerial roles
that have been highly commercial
with involvement in new ventures
activity and negotiations with
government authorities.
Board of Directors
Slide 21
Chris Foss
Director of Finance, Legal &
Corporate Affairs
Chris Foss was appointed to this
position in September 2010 and
has served as an Executive
Director since August 2005.
Chris is a member of the Institute
of Chartered Accountants in
England and Wales. Between
1998 and his joining the
Company in 2003 as Group
Financial Controller and
Company Secretary, Chris held
various finance positions with,
and acted as a consultant to,
energy related subsidiaries of GE
Capital Corporation, Bechtel
Group Inc, United Technologies
Corporation, and Centrica Plc.
Jerry White
Non-Executive Director
Jeremy White is currently a Non-
Executive Director, and is
Chairman of the Audit, Health and
Safety, Risks and Ethics and
Remuneration and Nomination
Committees, having previously
been Finance Director until August
2005. He is a Fellow of the
Institute of Chartered Accountants
in England and Wales. He has
worked in the oil industry for over
30 years, and immediately before
joining Northern he was UK Group
Tax Controller for PetroFina’s UK
operations.
Anthony Brewer
Non-Executive Director
Anthony Brewer was appointed
as a Non-Executive Director
during August 2006 and is
currently a member of the Audit
Committee. He has over forty
years of experience in fund
management and broking,
investment analysis and
corporate finance, with
specialist knowledge of the oil
and gas sector.
Rex Gaisford
Non-Executive Director
Rex Gaisford has worked in oil and
gas businesses worldwide for over 35
years, and was appointed to the
Board in August 2011. He has been
CEO, MD, director, project manager
of many large oil companies and led
multi-billion dollar exploration,
development and production
operations world-wide as well as
opened up new business
opportunities in the UK, US, Denmark,
Norway and Brazil. He has been
Managing Director & Executive Vice
President for American Independent
Oil Company, Amerada Hess
International and Project Director &
General Manager for Britoil Plc. Rex is
CEO of consulting company RCM
Consulting Limited