Northern Petroleum (AIM:NOP), the European focused oil and gas exploration, development and production company, announced that it had received £7 million from Star Energy Group for its interest in the Waalwijk underground gas storage project. Star Energy is a subsidiary of Petronas International Corporation.
Under the agreement, Northern Petroleum will be entitled to a further £3 million when 'Final Investment Decisions' are taken on the gas storage projects in the northern and southern parts of the Waalwijk licence.
The disposal also releases Northern Petroleum from a €4.5 million contingent consideration due to Wintershall Noordzee B.V.
Northern Petroleum was also keen to stress that the transaction did not impact its oil and gas interests in the Waalwijk licence.
Chris Foss, Finance Director, commented:
"Northern is delighted to have completed the sale of these non-core assets for an upfront consideration of £7m. This realises a significant profit for the Group and further strengthens our balance sheet. This strength should not be underestimated given current economic turmoil."
Mr. Foss was referring to Northern Petroleum's cash reserves, which post-divestment, and including the Dyas deferred consideration, stand at approximately £36 million.