Nautical farms into Baltimore

Nautical Petroleum has acquired a 40% equity interest in Licensing Option 10/1 in the North Celtic Sea basin off southern Ireland, operated by Providence Resources.

Offshore staff

LONDON -- Nautical Petroleum has acquired a 40% equity interest in Licensing Option 10/1 in the North Celtic Sea basin off southern Ireland, operated by Providence Resources.

The license includes the Baltimore heavy oil discovery, which has potential in-place oil resources of up to 300 MMbbl.

The discovery well (48/19-2) was drilled in 1992 on a Lower Cretaceous structure with an areal extent of around 12 sq km (4.6 sq mi). It encountered a 90-m (295-ft) gross hydrocarbon bearing section at around 900 m (2,952 ft) TVDSS in Lower Cretaceous sands similar to those producing at the nearby Kinsale Head field.

Crude recovered during testing was around 11 deg API, while reservoir cores suggested a good-quality reservoir quality with permeabilities of greater than 3,000 mD.

In return for its 40% stake, Nautical will perform and fund a development feasibility review to assess the find’s commercial viability.

Nautical operates the Kraken heavy oil discovery in the UK North Sea, and is also a partner to Statoil in Mariner, another nearby potential heavy oil development.

4/26/2010

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