28 Sep 2010 07:00
| For immediate release | 28 September 2010 |
Nautical Petroleum plc
("Nautical" or the "Company")
Nautical Acquires Interest in Nemo Oil Discovery Ireland
Nautical Petroleum plc (AIM:NPE) is pleased to announce that it has entered into a farm-in agreement to acquire up to a 65% interest in the Standard Exploration Licence 2/07 containing the Nemo heavy oil discovery. Nemo is situated approximately 60 kilometres offshore Ireland in the North Celtic Sea Basin in c. 90 metre water depth. Discovered in 1974, this c.16o API heavy oil accumulation is estimated to have an in place resource potential of up to 230mmbo.
Providence Resources plc (Providence), and their partners have agreed to farm-out up to a 65% equity interest in two stages in Nemo to Nautical. In return for an initial 25% stake, Nautical will fund and carry out a work programme on the development feasibility of the Nemo discovery. Nautical have a further option to increase their stake to 65% and assume operatorship should we elect to drill an appraisal well by the end of 2011. Nautical will fund 100% of the cost of the well.
Providence, the operator, currently holds a 72.5% interest in Standard Exploration Licence 2/07, Atlantic Petroleum holds 18.3% and Sosina Exploration holds 9.2%. The farm-in transaction is subject to the approval of the Irish government.
Steve Jenkins, Nautical's Chief Executive Officer, commented:
"We continue to build a material portfolio in Ireland in an area which demonstrates considerable exploration and appraisal potential. With Nemo we have an opportunity to use our expertise in heavy oil to potentially exploit the resource upside of this discovery"
For further information please contact:
| Nautical Petroleum plc | 020 7550 4890 |
| Steve Jenkins, Chief Executive Officer Paul Jennings, Commercial Director Will Mathers, Finance Director |
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Buchanan Communications |
020 7466 5000 |
| Tim Thompson Ben Romney Chris McMahon
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| Evolution Securities - Nominated Advisor & Joint Broker | 020 7071 4300 |
| Rob Collins Chris Sim Neil Elliot
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| Ambrian Partners Limited - Joint Broker | 020 7634 4700 |
| Richard Swindells
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This update has been approved for issue by Steve Jenkins, Chief Executive Officer of Nautical Petroleum plc. Mr. Jenkins, who is a "qualified person" for the purposes of AIM's Note for Mining and Oil & gas Companies (June 2009), is a qualified Geologist with more than 28 years' experience, having a BSC Hons from Queens University (Belfast) and MSC in Petroleum Geology from Imperial College (London) and is a Fellow of the Geological Society.