Kraken appraisal well spudded

The drilling rig Sedco 704 has spudded Kraken appraisal well 9/2b-3, according to Nautical Petroleum.

Offshore staff

LONDON -- The drilling rig Sedco 704 has spudded Kraken appraisal well 9/2b-3, according to Nautical Petroleum. The well is designed to intersect the oil water contact and investigate the tertiary Heimdal sandstone distribution.

Nautical drilled the 9/2b-2 well in November 2007 and encountered an oil column of at least 252 ft (77 m) in the palaeocene Heimdal horizon. Subsequent technical work suggests in place resources of between 376 and 1,255 MMbbl of oil, the company says.

Nautical has farmed down a further 10% of the well to Canamens Energy North Sea for a full carry of its costs up to $8.75 million. In addition a gross 30% interest was previously farmed out to Celtic Oil for $4.5 million. Assuming the well is drilled within budget, Nautical will have no financial exposure to the well cost.

Well results are expected in mid-October 2008.

09/22/2008

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