Oil and gas explorer Northern Petroleum has been awarded two new permits in Italy as it sheds its UK assets.
The Italian award covers the onshore asset, Cascina Alberto, in the Po Valley, developed by Eni under the Fiume Sesia permit and subsequently farmed in by Enterprise Oil for the Gattinara prospect in 2000.
Northern will re-evaluate the potential of the Gattinara prospect and seek a partner to join in the exploration of the permit to progress the prospect for drilling, the company said in a statement.
The second asset – offshore licence C.R149.NP in the Sicily Channel – is adjacent to Northern’s Vesta prospect in permit C.R146.NP.
The company will now seek a partner to join in the drilling of the Vesta prospect, it said.
“The award of these permits demonstrates that the administration in Italy is now actively progressing with approvals that have been outstanding for some years,” said Keith Bush, Northern Petroleum’s chief executive.
“The company now looks forward to making progress with other outstanding applications and approvals, especially those in the Southern Adriatic, which we believe hold the greatest potential for the company in Italy.”
The announcement coincides with the company signing a conditional agreement with UK Oil & Gas Investments (UKOG) over the sale of its UK production and exploration licence interests, for a total consideration of £1.5million.
The transaction includes a 10% and 5% working interest respectively in producing the Horndean and Avington oilfields in the Weald Basin, (operated by IGas Energy); a 50% interest in two further exploration licences in the Weald Basin; and a 65% interest in the offshore licence P1916 which flanks the western part of the Isle of Wight.
By the end of last year, Northern’s average daily share of production amounted to approximately 20 barrels of oil from the assets.
“This is a significant new investment for UKOG, as we continue to grow our presence in the UK and provides UKOG with a direct interest in oil production,” said David Lenigas, UKOG’s chairman.
“These new assets complement UKOG’s existing Weald Basin investments in the producing Lidsey and Brockham Oil Fields and the prospective Horse Hill-1 well.”
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