Northern Petroleum is an oil and gas explorer and producer, operating in areas of low risk. The Company strategy is to obtain and develop concentrated licence positions holding high quality prospects.

Through undertaking geological, geophysical and engineering work Northern adds and realises value from these licences for shareholders. Northern has an established track record with major industry partners and government authorities as a trusted manager of both onshore and offshore projects acting with high integrity and is recognised for its skillful technical team.

Northern is listed on AIM in London.

Netherlands

The Netherlands: strategy summary

In 2004 Northern correctly analysed The Netherlands as a Country (considered by many as a completely mature province with limited potential) to have significant opportunities for a nimble low cost entrant. The company’s strategy has been to acquire, by application and by negotiation with much larger companies, licences within the proven oil and gas producing areas which have undeveloped discoveries that can be profitably produced.

The Netherlands

In order to place the reserves in production and achieve a more assured future, Northern has placed emphasis on developing very open and

good relationships with all authorities and State entities, as well as building strong partnerships with established local companies. Northern has

successfully been introducing proven technology from other countries. Part of Northern’s growing presence in The Netherlands can be seen in its work with de Nederlandse Olie en Gas Exploratie en Productie Associatie (NOGEPA) and other operators. Northern has engaged with the government as a catalyst for change to the administrative procedures that had previously impeded progress on field operations. Northern’s strong technical and operations team is now in a position to obtain results from existing assets and identify new business opportunities to build and create further value in The Netherlands.

Review

In line with Northern’s strategy of obtaining low cost assets that offer the chance to “add value” at relatively low cost, the Company has succeeded in establishing a strong position. Revenues are flowing from the four fields now onstream. These, together with two more fields coming onstream

this year, will provide funding for future development and exploration work. In addition to the first tranche of six Northern managed field developments and the further expansion of production from them, there are five

undeveloped discoveries in the asset portfolio. Northern plans to seek additional opportunities and will continue to work closely with its strategic partners to achieve its objectives.

United Kingdom

United Kingdom: strategy summary

Production has been providing a modicum of low cost cash flow for Group development elsewhere. It is expected that production will continue from the existing field interests for a number of years. The Horndean oil field has experienced only minimal decline since the interest was purchased in 2003 for £200,000.

The licences in the Weald Basin of Southern England provide the opportunity to produce, appraise and explore in a basin with an excellent oil source rock. Northern’s strategy has been to establish a dominant position in the southwest area of the basin. Following a realistic analysis of the probability of gaining workable Planning Consents an expansion into the

west and northwest portions was not undertaken. The primary reservoir is a carbonate. The basin contains ten oil fields. Northern has interests in the Horndean and Avington fields.

UK

The licences were predominantly acquired through successful Licence Round applications. Northern has undertaken a comprehensive evaluation of the licensed acreage and has an inventory of undeveloped discoveries, potential extensions to existing fields and exploration prospects. Obtaining planning consents to drill these opportunities takes time when working with

local communities on sometimes sensitive issues. However, the effort should be rewarded as oil fields in the basin have generally performed well and have long production histories with little impact upon local communities during the production period. Northern has planning consents for the Markwells Wood and Havant wells.

Italy

Italy: strategy summary

Following Northern’s recognition of Italy’s strategic oil and gas merits, considerable change in economics, engineering capability and technical competence since the last substantial Italian exploration effort. Northern, ahead of nearly all competition, embarked on a strategy of identification and acquisition of key licences in prospective core areas. It is a natural consequence of the strategy that these core areas are offshore.

Italy

Over time the initial opportunities were expanded and supported by further work. Four core areas have now been delineated. As a result of which,

assuming that the preliminary licence awards are confirmed, we will manage licensed exploration areas of similar size to those of Eni, the ex-state oil company. Italy now represents the region that holds the most exciting and significant long-term opportunities in the group’s portfolio.

We intend to acquire more data to understand better the potential of the newer core areas and then seek new partners to assist with drilling

costs. The West of Sicily Thrust and Fold Belt project has already attracted as partner Shell Italia and a 3D seismic survey was acquired in 2010 at no cost to Northern.

Guyane

Guyane Strategy

Whilst the small investment in French Guyane came from opportunism it is consistent with Northern’s strategy of focusing on countries of low geopolitical risk. Northern has a modest financial exposure to a play that offers disproportional upside on exploration potential from discoveries

analogous to those recently made by Tullow, offshore Ghana. Encouragement has been given by Tullow’s recent success and experience in these plays. The entry of Shell (33%) and Total (25%) to the joint project with Northern and Tullow (39.5%) now adds further support to the exploration play concept.

Through Northern’s 50% holding in Northpet Investments Limited, it has a 1.25% interest in this licence. This will be a relatively low cost investment with a high potential reward.

Guyane in 2009

The Guyane Maritime covers some 32,000km² of a prospective area offshore French Guyane in water depths ranging from 200m to 3,000m.

Acquisition of a large 3D seismic survey was completed in early 2010. This will enhance the interpretation of the two existing seismic surveys recorded by the joint venture which indicates the presence of large structural and stratigraphic traps with the potential to contain significant hydrocarbon volumes.

Initial exploration efforts focused on structural prospects located on the Guyane continental shelf. However, the results of more recent geological work have identified the presence of stratigraphic prospects developed along the shelf edge and slope. It is these features that are similar in

age and form to oil discoveries such as the Jubilee Field made by Tullow on the opposite side of the Atlantic Ocean, offshore Ghana.

The recent entry of major oil companies into the joint venture group confirms our recognition of the potential of this acreage. Tullow is planning a well currently scheduled for late 2010.

Spain

Northern Petroleum has a 1.25% royalty interest in three Spanish licences operated by Leni Gas and Oil.

Richard Latham, Chairman

Richard Latham was appointed Non-Executive Chairman during June 1999 and has been a member of the Board since 1995. He is also Non-Executive Chairman of Strategic Natural Resources Plc and Ascension Holdings Limited and a number of Associated Companies. Richard holds an MBA degree from Cranfield and has spent most of his working life in the City – initially as an Investment Manager and for over 26 years with companies in the upstream oil and gas industry. He was formerly Deputy Chairman of Aberdeen Petroleum Plc, Chairman and Managing Director of Claremount Oil and Gas Limited and a Non-Executive Director of Atlantis Resources Limited, a company listed on the London and Toronto Stock Exchanges.

Derek Musgrove, Managing Director

Derek Musgrove has held the position of Managing Director since 1999. He had previously held senior managerial or board positions with RTZ Oil & Gas Limited, Candecca Resources Plc, Plascom Plc, Anglo Scandinavian Petroleum Plc and Bass Resources Limited. He was also a consultant to a number of oil and gas companies particularly in the areas of management, new projects and trading of oil and gas properties, as well as pursuing personal interests in the natural resources sector.

Chris Foss, Finance Director

Chris has served as Finance Director from August 2005, having been the Group Financial Controller and Company Secretary of Northern since January 2003. He was also Finance Director of PLUS quoted ATI Oil Plc from 2004 up until its acquisition by Northern. Chris is a member of the Institute of Chartered Accountants in England and Wales. Between 1998 and his joining the Company, Chris held various finance positions with, and acted as a consultant to, energy related subsidiaries of GE Capital Corporation, Bechtel Group Inc, United Technologies Corporation and Centrica Plc.

Graham Heard, Exploration and Technical Director

Graham Heard was appointed as Exploration and Technical Director on 8 May 2007, having been the Exploration Manager of Northern for the previous four and a half years. He is a former Chairman (1991) of the Petroleum Exploration Society of Great Britain. Graham has over 30 years experience as a petroleum geologist, beginning his career with Arco and then gaining extensive international experience with independents Siebens Oil and Quintana Petroleum. He subsequently held various executive positions with Sovereign Oil & Gas Plc, Neste Production Limited and Sands Oil & Gas Plc.

Jeremy White, Non-executive Director

Jeremy White is currently a Non-Executive Director and is Chairman of the Audit and Health and Safety Committees, and a member of the Remuneration and Nomination Committee, having previously been Finance Director until August 2005. He is a Fellow of the Institute of Chartered Accountants in England and Wales. He has worked in the oil industry for over 25 years, and immediately before joining Northern he was UK Group Tax Controller for PetroFina’s UK operations.

 Antony Brewer, Non-executive Director

Anthony Brewer was appointed as a Non-Executive Director during August 2006 and is currently Chairman of the Remuneration and Nomination Committee and a member of the Audit Committee. He has over forty years of experience in fund management and broking, in investment analysis, institutional sales and corporate finance, and has specialist knowledge of the oil and gas sector.

As at 17 November 2011, the Company has been advised of the following beneficial holdings in accordance with the Transparency Obligations Directive (Disclosure and Transparency Rules) Instrument 2008:

Name	Shares	% of issued
Barry James Lonsdale	5,558,661	5.94%
BlackRock Investment Management (UK) Limited	9,928,260	10.62%
The Royal Bank of Scotland Group Plc	4,813,236	5.15%
Majedie Asset Management Limited	3,689,100	3.95%
Hugh and Kate Sloane	2,400,000	2.57%
Cavendish Asset Management Limited	2,240,900	2.40%

The following interests appeared in the register as at 23 May 2011:

Name	Shares	% of issued
Pershing Nominess Limited	6,015,438	6.46%
TD Waterhouse Nominees (Europe) Limited	5,308,920	5.70%
Barclay Share Nominees Limited	4,824,325	5.18%
The Bank of New York (Nominees) Limited	4,220,603	4.53%
Hanover Nominees Limited	4,042,340	4.34%
Nortrust Nominees Limited	3,790,722	4.07%
Hargreaves Lansdown (Nominees) Limited	3,442,517	3.70%
L R Nominees Limited	3,379,967	3.63%
HSDL Nominees Limited	3,139,738	3.37%

Updated from Northern Petroleum's website on 20/12/2011