🕐26.09.13 - 09:27 Uhr

NORTH AMERICAN PETROLEUM: INTERIMS SHOW ON COURSE TO RAPIDLY BUILD RESERVES AND
HIT TARGET OF 25 WELLS IN PROVEN US ONSHORE PLAYS WITHIN 12 MONTHS OF IPO



North American Petroleum Plc/ Index: ISDX / Epic: NAPP / Sector: Oil & Gas 26 September 2013 North American Petroleum Plc (NAP or the Company) Interim Results North American Petroleum Plc, a company focussed on developing its interests in proven US onshore oil and gas formations, announces its interim results for the six month period ended 30 June 2013. Highlights
* Admission to the ISDX Growth Market (ISDX) in March 2013 in tandem with a �2 million fundraising to build net production and reserves through the acquisition and development of leases in liquids rich hydrocarbon plays onshore US * Delivering on strategy to rapidly deploy capital into drilling wells to generate revenues through production that can be recycled into acquiring additional leases to build a portfolio of producing and undeveloped assets focused on lower risk oil plays * Interests in 14 new wells secured - seven producing, seven under development or waiting to spud * On course to achieve 12 month target of interests in 25 wells * 492 net mineral acres acquired in the producing Mississippi Lime formation in Oklahoma with over 200 potential drilling locations * Low cost business model - operating expenses totalled �16,000 during the half year period ensuring as much capital as possible was available for investment * Post period end acquisition of 28.7% working interest in two wells, the Steele and Steinberger, currently producing from the Mississippi Lime: * Net production of 11.3 boepd (45% oil) attributable to NAP generating approximately US$10,000 net cash flow per month * Combined proved (P1) reserves of 171.6 MBoe for Steele and Steinberger net to NAP with a PV10 of US$6.7m (based on CPR) - provides asset backing * Increases NAPs acreage to 584 net mineral acres and number of wells to 16 North Americans Chief Executive Stefan Olivier said, "Our maiden set of half year results covers a highly active period for the Company, as we look to deliver on our objective to generate value by firstly acquiring leases in proven US onshore plays, and subsequently participating in drilling operations alongside established operators such as Devon Energy to grow production and prove up reserves.

Aside from our IPO and concurrent fund raising, leases covering approximately 500 net mineral acres and interests in 14 wells were acquired in the Mississippi Lime formation during the first half.

We have since increased our net acreage to 584 and the number of wells to 16, nine of which are producing.

We expect to make further progress in the second half, as we look to hit our 12 month target of interests in 25 producing wells, and in the process significantly build on our existing production and proven reserves.

I look forward to providing updates on our progress in due course." Chief Executive Officers Statement At the time of our IPO on the ISDX market in March 2013, we set out North Americans strategy to acquire and develop leases in proven US onshore formations such as the producing Mississippi Lime in Oklahoma and, in the process build a portfolio of producing assets and reserves.

Since then, we have made significant progress so that by 30 June 2013 we had acquired 492 net mineral acres in the Mississippi Lime, and interests in 14 wells, seven of which are already producing and generating revenues with the remainder at various stages of development or waiting to spud.

Post period end, we acquired a 28.7% working interest in two wells currently producing from the Mississippi Lime, bringing the total to 16 wells.

As a result of all this activity, and with access to a robust pipeline of new drilling opportunities, we are well on the way to achieving our 12 month target of having interests in 25 wells. To achieve this much in such a short space of time is testament to both the calibre and contacts of our management team and also illustrates the heightened level of activity in the US onshore oil and gas sector which has witnessed explosive growth in the last decade.

So much so that the International Energy Agency believes that the US could become self-sufficient in energy within 20 years.

The numbers speak for themselves.

Having peaked at approximately 10 million barrels a day in the early 1970s, US crude oil production steadily fell to 4 million barrels in the early 2000s but, since 2008, has risen over 50% towards the 8 million barrel mark.

The cause of this dramatic turnaround is largely due to advances in drilling techniques that have opened up known hydrocarbon reservoirs onshore US that were either deemed to be exhausted or inaccessible as a result of the nature of the geology such as the prolific Bakken play in North Dakota. We are seeking to generate high returns for investors by proving up the reserves on leases we acquire through participating in drilling new wells alongside leading operators such as Devon Energy.

At all times, we look to manage the risks and costs associated with oil and gas exploration.

For this reason, we are focused on known liquids rich plays where drilling success rates are high and recovery rates have dramatically improved thanks to the application of advanced techniques and technologies such as horizontal drilling and fracture stimulation.

In addition, by building a portfolio of interests, risk is diversified among a number of wells so that the Company is not over reliant on the result of one drill.

Moreover, thanks to the relatively shallow depths and non-shale geology of the Mississippi Lime, drilling costs at between US$2.4 million and US$3.5 million per well are considerably lower than those in other US onshore formations such as the Bakken.

As a result, this historic formation in Oklahoma is ideally suited to a Company looking to rapidly build a portfolio of wells. Lower drilling costs not only allow us to deploy our capital over a range of different wells but also can lead to short pay-out periods (recovery of drilling costs).

The quicker we recover costs, the sooner we are able to reinvest capital into new wells and leases to grow production and reserves further, allowing a rapid and low risk roll out of our strategy.

With over 200 potential drilling locations on our 584 net mineral acres we have already built a large future well bank.

Successfully drilling wells not only grows production and revenues but also holds leases by production and importantly proves up the reserves.

By acquiring leases and then systematically proving up the reserves via drilling, we believe that we will build value.

As our portfolio of producing wells grows and reaches critical mass, we will look to commission a Competent Person to undertake a reserves report which will include an estimate of reserves in the proven, probable and possible categories, along with an associated valuation, thereby providing an indication of the progress being made. Financial Review NAP acquired its first interests in wells in April 2013.

No revenues were received by the Company during the six month period under review and a loss of �16,000 is being reported for the half year.

Operating expenses totalled �16,000, a reflection of the low cost structure of the business which ensures as much capital as possible is available to acquire and develop leases.

At the time of the IPO in Q1 2013, the Company raised �2 million through the issue of 300,752,000 new ordinary shares, at 0.665 pence per share.

Total shares in issue now stand at 400,752,000.

The Company has no ordinary shares held in Treasury. Corporate Review Post period end, we announced the appointment of Andrew J.

McHardy as a Non-Executive Director of NAP.

With his extensive managerial and technical experience, gained during a career spanning over 25 years in the oil and gas industry, Andrew has already proved to be a valuable addition to our team in the short period of time he has been with us. Outlook The first half of 2013 has seen us make a great start in rolling out our strategy and building a portfolio of leases and wells in producing US onshore formations.

As the post period acquisition of a 28.7% interest in the Steele and Steinberger wells shows, we are building on the strong momentum behind the business.

The value of the proven reserves of the Steele and Steinberger wells alone is US$6.7m net to NAP, approximately twice the value of NAPs current market valuation.

We are working towards our objective of generating value for all our shareholders by acquiring and developing leases in US onshore formations and, with a number of opportunities actively being evaluated and considered, we expect to add to our growing portfolio in the second half of the year. Finally, I would like to thank the Board, management team and all our advisers for their hard work and also to our shareholders for their continued support over the period. Stefan Olivier Chief Executive Officer UNAUDITED INCOME STATEMENT
6 months to 30 June 2013 2 months to 30 June 2012 7 months to 31 December 2012
�000 �000 �000
Revenue
- - - Cost of sales
- - -
------------- ------------- ------------- Gross profit
- - -
Other operating expenses
(16) - -
------------- ------------- ------------- Operating (loss)/profit
(16) - -
------------- ------------- ------------- (Loss)/profit before tax
(16) - -
Tax credit/(expense)
- - -
------------- ------------ ------------ (Loss)/profit for the period attributable to the
(16)
equity shareholders of the parent
- -
------------- ------------- ------------- Total comprehensive (expense)/income for the period
(16) - -
====== ====== ======
UNAUDITED INTERIM STATEMENT OF CHANGES IN EQUITY
Share Share Retained
Capital Premium Earnings Total
�000 �000 �000 �000
Balance at 15 May 2012 - - - - Issue of share capital 5 - - 5 Total comprehensive expense for the period - - - -
----------- ------------ ------------- ------------- Balance at 30 June 2012 5 - - 5
Total comprehensive expense for the period - - - -
----------- ------------ ------------- ------------- Balance at 31 December 2012 5 - - 5
Issue of share capital 35 1,739 - 1,774 Total comprehensive income for the period - - (16) (16)
----------- ------------ -------------- ------------- Balance at 30 June 2013 40 1,739 (16) 1,763
====== ====== ======= ======
UNAUDITED BALANCE SHEET
30 June 2013 30 June 2012 31 December 2012
�000 �000 �000 ASSETS
Non-current assets
Property, plant and equipment
2 -
Investments
569 - - Deferred tax asset
- - -
------------- ------------- -------------
571 - -
------------- ------------- ------------- Current assets
Other receivables
6 5 - Cash and cash equivalents
1,192 - 5
------------- ------------- -------------
1,198 5 5
------------- ------------- ------------- Total assets
1,769 5 5
====== ====== ======
LIABILITIES
Current liabilities
Other payables
6 - -
------------- ------------- ------------ Total liabilities
6 - -
------------- ------------- ------------ Net assets
1,763 5 5
====== ====== ======
EQUITY
Capital and reserves attributable to the Companys equity shareholders
Called up share capital
40 5 5 Share premium account
1,739 - - Retained earnings
(16) - -
------------- ------------- ------------ Total equity
1,763 5 5
====== ====== ======
UNAUDITED CASH FLOW STATEMENT
6 months to 30 June 2013 2 months to 30 June 2012 7 months to 31 December 2012
�000 �000 �000
Cash flows from operating activities
(Loss)/profit before tax (16) - - Adjustments for:
Decrease/(increase) in other receivables (6) - - Decrease/(increase) in other payables 6 - -
-------------- -------------- -------------- Net cash (used in)/generated from operating activities (16) - -
-------------- -------------- -------------- Cash flows from investing activities
Interest received
- - Purchase of tangible fixed assets (2) - - Purchase of investments (569) - -
-------------- -------------- -------------- Net cash used in investing activities (571) - -
-------------- -------------- -------------- Cash flows from financing activities
Proceeds from issuance of ordinary shares 1,774 - 5
-------------- -------------- -------------- Net cash generated from financing activities 1,774 - 5
-------------- -------------- --------------
Net movement in cash and cash equivalents 1,187 - 5 Cash and cash equivalents at beginning of period 5 - -
-------------- -------------- -------------- Cash and cash equivalents at end of period 1,192 - 5
======= ======= =======
NOTES TO THE UNAUDITED INTERIM REPORT NOTES TO THE ACCOUNTS 1.

Basis of preparation The financial information in this interim report has been prepared in accordance with the International Financial Reporting Standards as adopted by the EU and on the basis of the accounting policies described below.

The financial statements have been prepared under the historical cost convention, as modified by the accounting for financial instruments at fair value.

In addition this interim financial report does not comply with IAS34 Interim Financial Reporting, which is not currently required to be applied under the ISDX rules. The Directors are of the opinion that the financial information should be prepared on a going concern basis, in the light of the Companys financial resources. The financial information included in this interim financial report for the period from incorporation on 15 May 2012 to 30 June 2013 does not constitute statutory accounts as defined in the Companies Act 2006, is unaudited and has not been subject to a review by the Companys auditors. 2.

Loss per share Basic loss per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

For diluted loss per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The calculation of basic and diluted earnings per share is based on the following figures: Period from 1 January 2013 to 30 June 2013 Total loss for the period (GBP 16,000) Weighted average number of shares - basic 400,752,000 Diluting effect of warrants in issue 60,112,800 Weighted average number of shares - diluted 460,864,800 Basic earnings per share (0.00004p) Diluted earnings per share (0.00003p)
3.

Reports A copy of this announcement will be mailed to shareholders and copies will be available for members of the public at the Companys Registered Office - 190 High Street, Tonbridge, Kent TN9 1BE. **ENDS** For further information and the full Admission document visit www.napetroleum.com or contact the following: Stefan Olivier David Coffman North American Petroleum Plc Keith, Bayley, Rogers & Co. +44 (0) 7595 779520 +44 (0) 207 156 5040 Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Notes North American Petroleum Plc acquires leases in producing onshore US formations such as the Mississippi Lime, Oklahoma, where the application of new techniques and technologies such as horizontal drilling and fracture stimulation can dramatically improve recovery rates.

Revenues generated out of production are reinvested into both new wells and into the acquisition of additional leases to build a portfolio of producing and undeveloped assets focussed on lower risk oil rich plays.

To date, NAP has acquired 584 net mineral acres in the liquids rich Mississippi Lime play and has interests in nine producing wells and a further seven either drilling or waiting to spud.
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