Oil and gas explorer Northern Petroleum has downgraded part of its UK reserves and relinquished two licences following a commercial viability review of its assets.
The company has changed the classification of its probable reserves in licences PEDL233 containing Baxters Copse and Markwells Wood in PEDL126 to a “best estimate of contingent resources” of 4.3million barrels.
Although the two assets have commercial potential, further appraisal is required before the company can set out a development plan for future production, Northern said in a statement.
The company has also decided to give up its share in the joint ventures PEDL256 and PEDL155, including the Havant prospect.
This adds to the two producing oil fields – Horndean and Avington, operated by IGas – which the company had put on sale earlier. The firm said it was still awaiting “an acceptable offer” for the fields.
“The Horndean and Avington fields provide a small but consistent source of income to the company and the value of this will be the primary consideration in the evaluation of any offer we receive for the UK portfolio,” said Keith Bush, chief executive of Northern Petroleum.
“While the Company still holds these assets, management time and capital allocated to the UK will be limited.”
