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Edison Investment Research comments on Northern Petroleum’s Baxters Copse reserve update

In response to Northern Petroleum’s (AIM: NOP) reserve update yesterday at the Baxters Copse prospect in Sussex, Edison Investment Research highlighted that the company’s 50% share of production would complement Northern’s existing production from the Horndean and Avington fields.

The Baxters Copse joint venture licence area (PEDL 233), located in the Weald Basin, is being developed through a 50:50 joint venture with Providence Resources (AIM: PVR). Yesterday, the partners announced that a report by RPS Energy attributes previously unreported gross 2P and 3P reserves of 5.36 million stock tank barrels (MMstb) and 15.06 MMstb respectively of undeveloped reserves.  The licence area has 1P reserves of 0.70 MMstb.

Baxter's Copse is located 5 kilometres northeast of Providence's 99.125%-owned Singleton oil field in West Sussex, which currently produces over 800 boepd. Edison noted that a well can be drilled and planned without further planning consent, and Northern is planning on first oil in 2011.

Furthermore, the research house said that the next catalyst for Northern in the UK will be the drilling of an appraisal well at Markwells Wood in 2010, which is targeting an extension of the Horndean field and estimated to contain 27.5mmbbls of oil-in-place.

Disclosure: The author holds no positions in the company