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Northern Petroleum Plc
General Meeting
December 2016
Northern Petroleum
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The Presentation Materials do not constitute or form any part of any offer or invitation to sell or issue or purchase or subscribe for
any shares in Northern Petroleum PLC (“Northern Petroleum”) nor shall they or any part of them, or the fact of their distribution,
form the basis of, or be relied on in connection with, any contract with Northern Petroleum relating to any securities. Any decision
regarding any proposed purchase of shares in Northern Petroleum must be made solely on the basis of the information issued by
Northern Petroleum at the relevant time. Past performance cannot be relied upon as a guide to future performance. The
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them or otherwise made available, whether orally or in writing in connection with Northern Petroleum or otherwise. The Presentation
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The Presentation Materials do not constitute or form part of a prospectus prepared in accordance with the Prospectus Rules (being
the rules produced and implemented by the Financial Conduct Authority (“FCA”) by virtue of the Prospectus Rules Instrument 2005)
and have not been approved as a prospectus by the FCA (as the competent authority in the UK). The Presentation Materials do not
contain any offer of transferable securities to the public as such expression is defined in section 102(b) FSMA or otherwise and do
not constitute or form part of any offer or invitation to subscribe for, underwrite or purchase securities nor shall they, or any part of
them, form the basis of, or be relied upon in connection with, any contract with Northern Petroleum relating to any securities.
Disclaimer
December 2016
2
Northern Petroleum Northern
Petroleum
AIM quoted exploration and production company
Growth through production and cashflow
Opportunity of significant upside potential through
unique exploration and appraisal portfolio
Small board and management team with necessary
skills and experience to achieve growth
Low corporate running costs
Existing asset base can create a material business
Production led growth
December 2016
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Northern Petroleum
Keith Bush
Chief Executive Officer
– led E.ON’s E&P operations in Norway
– 25 years in the E&P industry
– Reservoir Engineer by profession
Nick Morgan
Finance Director
– 13 years corporate finance experience focused on the E&P sector
– broad collection of M&A and ECM transactions in oil and gas
– Chartered Accountant by profession
Jon Murphy
Non-executive Chairman
– over 30 years E&P industry experience
– COO of Venture Production from inception to sale
– Geologist by profession
Iain Lanaghan
Independent Non-executive Director
– over 30 years financing and transaction experience
– previously Group Finance Director of Faroe Petroleum
– Chartered Accountant by profession
The Board
December 2016
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Northern Petroleum
New strategic partner H2P is part of the I-Pulse group
large technology business focused on oil & gas and mining
Asset investment Canada
acquisition of 25% interest in all assets in Canada for $2 million closing conditional on subscription completing option to increase to 50% by end of 2017 for further $4m area of mutual interest to jointly build large production business
Italy acquisition of 10% interest in southern Adriatic permits and
applications for $0.5 million regulatory approval expected in Q1 option to increase to 50% through Giove appraisal well carry capped
at $15 million
Australia 25% interest in Australian onshore exploration permit option to increase to 50% by Q3 2017 through $1m seismic
programme
Strategic investment – asset level
December 2016
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Northern Petroleum
Northern Petroleum
First tranche subscription 124 million shares at 3.5p totalling £4.3 million
H2P subscribing to achieve post issue holding of 29.9%
existing institutional holders participating
Open Offer Open offer of 1 share for every 7 held on 28 November
21.5 million shares being offered at 3.5p
up to an additional £0.8 million
over allotment facility available
Second tranche subscription H2P and Cavendish Asset Management can subscribe for
additional shares to maintain equity interest of 29.9% and 19.0% following open offer up to an addition £0.7 million at 3.5p
Strategic investment – corporate level
December 2016
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Northern Petroleum
Northern Petroleum
Canadian operations in 2017
September 2016
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Achieve 800 bopd (gross) following winter work programme
Summer programme to test well side track benefits
Subsurface study working on Virgo production capability
Plan next winter programme to achieve 1,500 bopd gross
Northern Petroleum
Southern Adriatic Environmental approval received for seismic
appeals against awards all rejected
finalising prescriptions before tendering
Q3 / Q4 acquisition timetable
Permit application awards expected in Q1
Initiate approval process on Giove appraisal well
Italy in 2017
December 2016
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Cascina Alberto Shell operated onshore exploration
programme progressing
Seismic acquisition programme preparation
Northern Petroleum
Balance sheet Asset and corporate investment will total between $8 to
$10 million
more than sufficient to fund planned capital programme in 2017
2017 production and cashflow Forecast production and net back in Canada to more than
cover total group G&A in 2017
Building a carried Italian work programme Introducing new partners into Italian licences providing:
up to $4 million seismic programme and $50 million exploration well onshore Cascina Alberto
up to $15 million Giove appraisal well (on option exercise)
Financial capability
December 2016
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Northern Petroleum
Successful execution will be transformational for the Company and its share price
Positioned for growth
December 2016
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Company has come through a very difficult industry environment now better positioned for growth
Transformational transaction:
good balance sheet strength to build production and progress Italy
key elements of programmes in Italy and Australia carried
strong financial partner for new ventures
supportive strategic corporate investor
Good opportunity in the commodity cycle to build a material E&P business
Corporate strategy of focusing on low risk production growth combined with the possibility of high returns through exploration and appraisal