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.