Report suggests Rovesti is commercial

Offshore staff

ABERDEEN, UK --A new study suggests Northern Petroleum's Rovesti discovery in the southern Adriatic Sea has probable oil reserves of 33.56 MMbbl.

The report, conducted by Blackwatch Petroleum Services, follows a previous estimate of 19.67 MMbbl for the nearby Giovesti discovery. Northern holds 50% of the licenses containing the two fields, plus an 18.53% beneficial interest via ATI Oil.

Assuming a $70/bbl Brent crude price, the report also assesses the development cost for the fields at $349 million. According to analysts Investec Securities, Rovesti's oil is lighter, and will likely be developed first – assuming Northern can attract a farm-in partner to share the costs.

Investec says Northern will need to drill a horizontal appraisal well at Rovesti to determine its potential and development drilling requirements. This well could be drilled in the second half of 2008 at a cost of $29.7 million to $39.66 million, using a drillship or a semisubmersible.

Assuming a subsequent 12-month period for preparation and submission of a development plan, first oil could follow in 2010.

12/25/2007