Nautical farms out Kraken interest

Nautical Petroleum has entered into a farm-out agreement with Canamens Energy North Sea Ltd. Under the agreement, Canamens will acquire an additional 10% interest in the North Sea block 9/2b (Kraken).

Offshore staff

LONDON -- Nautical Petroleum has entered into a farm-out agreement with Canamens Energy North Sea Ltd. Under the agreement, Canamens will acquire an additional 10% interest in the North Sea block 9/2b (Kraken).

Together with the farm out of a 30% interest in North Sea block 8/25a and a 35% interest in North Sea block 3/27a, this agreement completes Nautical's three-part set of farm outs with Canamens.

In 2007, Nautical and its partners drilled a successful appraisal well on Kraken, which indicated lighter oil (18.4° API) than previously assessed and confirmed a substantial accumulation with oil down to some 71 ft (22 m) lower than the predicted maximum oil-water contact in the pre-drill reserve estimations in well 9/2b-2.

Since completing well 9/2b-2, the well data has been integrated with the reprocessed 3D seismic to determine a revised estimate of hydrocarbons in place and to locate the next well, the company says.

The Kraken partners expect to drill a further appraisal well in 4Q 2008.

08/06/2008

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