Northern Petroleum provides the following update regarding production activities in north west Alberta, Canada.
•Production package for well 100/16-19 now ready to be transported to well site with production start up planned for beginning of June
•Start up production rate of between 75 and 100 barrels of oil per day ('bopd') expected from the well
•The pump on well 102/15-23 has been installed and expected production of approximately 150 bopd will start following remedial maintenance on the pipeline by the local operator - forecast for Q3 2015
•At US$55 WTI, operating net back after royalty is forecast to be approximately US$30 per barrel
•At current oil prices, net cashflow from both wells is expected to cover most of the total general and admin costs for the Company
•Planning continues to re-start economic production from other shut-in wells
Keith Bush, Chief Executive Officer, commented, 'Recent work has been focused on ensuring the business can operate effectively in the current oil price environment. The benefits of this work can now be seen, where production from only two wells is expected to effectively support the whole group. The timing of the production shut-in during the first quarter of 2015 will also benefit cashflow due to the recent firming in oil prices and a reduction in operating costs as a result of reduced service rates.'