OilVoice - Nautical Petroleum Announces Farm In Agreement with Providence Resources

Nautical Petroleum Announces Farm In Agreement with Providence Resources

Monday, April 26, 2010

Nautical Petroleum, the AIM listed independent exploration and production company focused on the development of heavy oil assets in the UK and Europe, announces 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.'

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