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26 Apr 2010 07:00
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For immediate release |
26 April 2010 |
Nautical Petroleum plc
("Nautical" or "the Company")
Farm In Agreement
Nautical Petroleum (AIM:NPE), the independent exploration and production company focused on the development of heavy oil assets in the UK and Europe, is pleased to announce that it has acquired a 40% equity interest in Licensing Option 10/1, operated by Providence Resources Plc.
Licensing Option 10/1, located in the North Celtic Sea Basin, contains the Baltimore heavy oil discovery which is estimated to have in place potential of up to 300mmbo. The discovery well (48/19-2) was drilled in 1992 on a Lower Cretaceous structure with an areal extent of c.12 square kilometres. The well encountered a c. 90m gross hydrocarbon bearing section at c. 900m TVDSS in sands of Lower Cretaceous age which are similar to those producing at the nearby Kinsale Head field. Oil recovered during testing was a heavy crude (c. 11o API) while reservoir cores indicated excellent reservoir quality with permeabilities of greater than 3,000mD.
In return for a 40% equity stake, Nautical will perform and fund a development feasibility review to assess the commercial viability of the discovery.
Commenting on this announcement Steve Jenkins, Chief Executive of Nautical said:
"We are looking forward to working with Providence and using our expertise in heavy oil development on this significant discovery in a new arena for Nautical".
Commenting on this announcement Tony O'Reilly, Chief Executive of Providence, said:
"We are extremely pleased to have secured such a capable JV partner for the Baltimore project so quickly following the award of the Licensing Option. We are particularly pleased to be working with Nautical who have a real track record in the development assessment of offshore heavy oil projects."
For further information please contact:
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Nautical Petroleum plc |
020 7550 4890 |
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Steve Jenkins, Chief Executive Officer Paul Jennings, Commercial Director Will Mathers, Finance Director |
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Buchanan Communications |
020 7466 5000 |
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Tim Thompson Ben Romney Chris McMahon
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Evolution Securities - Nominated Advisor & Joint Broker |
020 7071 4300 |
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Rob Collins Neil Elliot Adam James
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Ambrian Partners Limited - Joint Broker |
020 7634 4700 |
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Richard Swindells
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Glossary:
mmbo million barrels of oil
TVDSS total vertical depth drilled
API American Petroleum Institute
mD milli Darcies
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
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