January 6, 2011 / 8:32 AM / 9 years ago

UPDATE 1-Northern Petroleum confirms oil find at Sussex licence

* Finds oil in core regions of Markwells Wood-1 well

* Penetrates hydrocarbon-bearing interval of 275 ft

* Shares up 4.4 pct (Adds details)

Jan 6 (Reuters) - European Union-focused explorer Northern Petroleum NOP.L confirmed on Thursday that it found oil in the core regions of its Markwells Wood-1 well in Sussex, sending its shares up more than 4 percent.

In December, Northern said it found oil in the primary reservoir at the site, after the well was spudded in November. [ID:nWLA1766] [ID:nWLA8715]

The explorer said it penetrated a hydrocarbon-bearing interval of 275 feet, with a calculated net reservoir of 192 feet at the well, located in the PEDL126 licence.

“Success at Markwells Wood, helped by current oil prices, should enhance the value of the other undeveloped discoveries and exploration prospects held under licence by Northern in the UK,” Managing Director Derek Musgrove said in a statement.

Northern, which operates the PEDL126 licence, holds a 50 percent interest, Magellan Petroleum MPET.O has a 40 percent interest, while Egdon Resources (EGRE.L) holds the remaining stake in the licence.

Northern shares, which have gained nearly a third in value since the Markwells Wood well was spudded in November, were up 4.4 percent at 142 pence at 0817 GMT on Thursday on the London Stock Exchange. (Reporting by Anirban Sen in Bangalore; Editing by Prem Udayabhanu)

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