North American Petroleum Plc/ Index: ISDX / Epic: NAPP / Sector: Oil & Gas 17 December 2013 North American Petroleum Plc (NAP or the Company) Acquires 30% Interest in Mathis Unit, Oklahoma with Significant Near Term Development Potential North American Petroleum Plc, a company focussed on developing its interests in proven US onshore oil and gas formations, is pleased to announce it has acquired a 30% working interest in the Mathis Unit (Mathis) which covers 960 gross acres in Osage County, Oklahoma (the Acquisition) and is adjacent to two horizontal wells currently producing from the Mississippi Lime formation, in which NAP already holds a 28.7% working interest.

The Acquisition increases the value of NAPs proven reserves by 20% to US$21.05m and is in line with the Companys strategy to rapidly build net production and reserves by acquiring and developing leases in liquids rich hydrocarbon plays. Key Highlights
* 30%/23% working/net revenue interest acquired in 960 gross acre Mathis Unit which is operated by AIM listed Northcote Energy plc - directly offsets the Steele and Steinberger wells producing from the Mississippi Lime in which NAP has an interest * Acquisition includes eight producing vertical wells that hold the leases by production and 3-D seismic data covering a portion of the lease * High impact development potential: two proved undeveloped (P1) horizontal drilling locations targeting the Mississippi Lime formation with combined P1 reserves of 96,070 MBO and condensate and 0.817Bcf natural gas net to NAP with a PV10 of US$4.29m (based on Competent Persons Report) * First well location with gross 200,000 barrels of oil and 1.7Bcf of natural gas expected to spud in January 2014 * US$120,000 cost of acquisition equates to US$1.93 per P1 barrel of reserves - compares favourably to average price for similar US onshore transactions * Net leasehold position increased by 288 to 1,067 mineral acres in the Mississippi Lime formation, Oklahoma NAPs Managing Director Stefan Olivier said, "The Mathis acquisition matches our investment criteria: the acreage is located in an area where there is already production from the Mississippi Lime formation; it offers high impact near term development potential; and we acquired it at a competitive price per barrel of proven reserves.

Since our IPO in March 2013, we have secured over 1,000 net mineral acres in the Mississippi Lime with over 200 potential drilling locations and from a standing start we have grown the value of our P1 reserves to over US$21m, which easily outstrips our current market valuation.

As a result of participating in new drilling on our acreage alongside established operators such as Devon Energy, as well as our on-going leasing activity in producing US onshore formations, we expect to significantly add to our asset backing in terms of proven reserves and in the process build further value for shareholders." Further Information NAP is acquiring a 30% working interest and 23% NRI in the Mathis Unit in Osage County, Oklahoma from AIM listed Northcote Energy (NCT).

Mathis covers an area of 960 gross acres, 288 of which are attributable to the Company.

Eight vertical wells exist on the property, the production of which directly offsets two producing wells, Steele and Steinberger, on the Horizon Project in which NAP holds a 28.7%/21.65% working/net revenue interest.

Significantly, all of the leases are part of a "unit" and as such production on any part of the unit holds the entire lease position indefinitely. The Mathis unit holds significant development potential through the workover of the existing wellbores.

In addition, 3-D seismic data exists over a portion of the Mathis lease from which two horizontal well locations have already been identified, both of which have been designated as proved undeveloped (P1) locations by Moyes & Co.

The first new well, which is expected to spud in January 2014, has been assigned gross 200,000 barrels of oil and 1.7Bcf of natural gas.

Combined with the second proven undeveloped location, reserves total 328,000 barrels of oil and 2.79Bcf of natural gas with a PV-10% of US$4.29m which is attributable to NAP net of expected drilling and completion costs. The purchase price of US$120,000 equates to a cost per barrel of P1 reserves of US$1.93 per barrel of oil equivalent which compares favourably to similar transactions. Glossary P1 means Proved Reserves Bcf means Billion Cubic Feet per Day BOE means barrels of oil equivalent, gas is converted at its energy equivalent of 6000 cubic feet per barrel of oil BOEPD means barrels of oil equivalent per day, BOPD means barrels of oil per day, Abbreviation for barrels of oil per day, a common unit of measurement for volume of crude oil.

The volume of a barrel is equivalent to 42 US gallons M means Thousand MBO means Thousand Barrels of Oil Mcfd means Thousand Cubic Feet per Day MM means million (thousand thousand not million million), as used in oilfield and heat content units such as MMSTB and MMBtu MMBbl means Million barrels MMcfd means Million Cubic Feet per Day Proved Reserves means those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulation - Proved reserves can be categorised as developed or undeveloped. **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 1,067 net mineral acres in the liquids rich Mississippi Lime play and has interests in 14 producing wells and a further eight either drilling or waiting to spud.
[cid:image002.png@01CECBDD.61F8A860] Lottie Brocklehurst St Brides Media & Finance Ltd 3 St Michaels Alley, London, EC3V 9DS www.stbridesmedia.co.uk Tel: 0207 236 1177 | Mob: 07917010468 | Twitter: @StBrides1