Northern Petroleum PLC (AIM: NOP) said it is in talks with a third party as to a possible geothermal energy application for the Nieuwendijk site after electric logs and pressure tests at the the well drilled there suggest levels of oil saturations are not sufficient to warrant significant costs of testing.
These results along with other information obtained from the well will be integrated into its interpretation of the area around the Ottoland and Brakel fields enabling a new valuation to be made of the nearby and adjacent structures, the company said.
Northern's activities in The Netherlands will now concentrate and intensify on developing its six onshore fields, Brakel, Geesbrug, Grolloo, Ottoland, Papekop and Wijk en Alburg, together estimated to contain 45.5 million barrels of oil equivalent net to Northern.
While this is a disappointment, managing director Derek Musgrove said: “... in the overall Netherlands drilling programme Northern has an additional undeveloped gas discovery in the Andel III licence and further undeveloped gas discoveries and significant oil and gas exploration prospects in the adjacent Utrecht licence. These discoveries form Northern's continuing programme in the region next year."
"Our interest in geothermal energy will increase with activity. It has a potential to provide a significant salvage value to unsuccessful drilling efforts in populated areas where the reservoir temperatures are around 90-100 degrees centigrade.