Northern Petroleum posts Canadian reserves update

Northern Petroleum has issued an update on the certified reserves for its development and production assets in Canada.

An independent reserves report was undertaken by McDaniel & Associates Consultants Ltd as at 30 September 2016.

HIGHLIGHTS:

– Total Proven plus Probable (“2P”) reserves of 1.9 million barrels of oil equivalent (“mmboe”) attributable to the Company (97 per cent. oil) – 1.3 mmboe of Proven (“1P”) reserves (97 per cent. oil)

– Net present value, using a 10 per cent. discount rate (“NPV10”), for 2P reserves of approximately US$23 million

– NPV10 of 1P reserves of approximately US$16 million

– Increase in 2P reserves of approximately 30 per cent. since 31 December 2014, the date of the last independent reserves reports completed on the Company’s Canadian assets

– reserves increase is in addition to approximately 0.155 million barrels of cumulative production since 31 December 2014

– Reserves increase achieved despite an approximate 20 per cent. reduction in forecast oil price used in the recent evaluation due to the prevailing lower price environment.

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