NORTHERN PETROLEUM PLC - Extension of Loan Facility to ATI Oil Plc

Embargoed for release: 0700 on 2 June 2008

                            Northern Petroleum Plc

                         ("Northern" or "the Company")

                   Extension of Loan Facility to ATI Oil Plc

Northern (AIM:NOP), an oil and gas production, development, exploration and
asset trading company, announces that it has signed a further addendum to the
loan agreement with ATI Oil Plc ("ATI") dated 30 October 2006. All funds drawn
down under the terms of the facility will now become repayable to Northern in
full on or before 31 December 2008, a seven month extension. All other terms
and conditions of the original loan agreement remain in force.

This extension has been granted to provide time for current discussions with
third parties to continue towards conclusion in an orderly manner.

The facility is secured over certain of ATI's assets, including its 50%
interests (Northern 50% and operator) in the FR.39.NP and FR.40.NP licences in
the southern Adriatic, which contain the Rovesti and Giove oil discoveries,
which have recently been assessed by independent consultants as having 53.23
million barrels of P2 reserves, suggesting NPV10 values for the two fields of
US$610 million (US$305 million net to each of Northern and ATI) at US$70 Brent.
An independent resource evaluation of six of the Company's drilling prospects
in these Adriatic Sea licences has also been completed, with the combined
potential of the prospects assessed at 2.29 billion barrels of oil in place at
a P50 probability, rising to a potential of 6.03 billion barrels at a P10
probability.

Every well drilled to date within the area licensed by Northern and the
adjoining Eni production licence has discovered hydrocarbons.

Relationship between Northern and ATI

Northern currently has a 37.05% shareholding in ATI. Derek Musgrove and Chris
Foss, directors of Northern, are also directors of ATI. The Directors of
Northern who are independent of ATI, having consulted with Northern's nominated
adviser, Investec, consider the provision and terms of the extension of the
facility to be fair and reasonable insofar as Northern's shareholders are
concerned.

For further information please contact:

Northern Petroleum Plc Tel: +44 (0) 20 7469 2900

Richard Latham, Chairman

Graham Heard, Exploration & Technical Director

Investec Tel: +44 (0) 20 7597 5000

Michael Ansell / Paul Brett

Panmure Gordon & Co Tel: +44 (0) 20 7459 3600

Katherine Roe / Ashton Clanfield

Bishopsgate Communications (Press) Tel: +44 (0) 20 7562 3350

Nick Rome / Maxine Barnes

Buchanan Communications (Analysts) Tel: +44 (0) 20 7466 5000

Tim Thompson / Nick Melson / Ben Romney



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