Northern Petroleum Nederland B.V., a subsidiary of Northern, has signed a binding Heads of Agreement (HOA) with Dyas B.V. under which Dyas B.V. will acquire a quarter of the Northern Petroleum Nederland B.V. interests in six oil and gas discoveries and three exploration wells.

In exchange, Dyas B.V. will transfer a 23.6% interest in the producing gas field in block P12, a 30.4% interest in two gas discoveries in the Zuid Friesland permit and pay €18million in cash. Northern Petroleum Nederland B.V. will retain a 5% overriding oil production royalty over part of the transferred oil reserves in the Ottoland and Papekop oil fields.

Under a separate Strategic Alliance Agreement (“Strategic Alliance”) both companies will work together to identify and pursue new business opportunities in mutually agreed regions of the world excluding all existing licences and applications.

Northern Petroleum Plc will be the management company, Operator, for the Strategic Alliance. Under the terms of this agreement in addition to the Dyas pro-rata share of costs, Northern Petroleum Plc will receive payments of €14 million commencing on signature and over a period of three years, for Northern Petroleum Plc’s proprietary knowledge