LONDON -- Nautical Petroleum has entered into a farm-in agreement for a license in the North Celtic Sea off southern Ireland.
The company will acquire an interest of up to 65% in Standard Exploration License 2/07 containing the Nemo heavy oil discovery, pending approval from the Irish government.
Nemo, discovered in 1974, is around 60 km (37 mi) offshore in a water depth of around 90 m (295 ft). The16o API oil accumulation has estimated potential resources of up to 230 MMbbl.
Operator Providence Resources and its partners have agreed to farm-out up to a 65% equity interest in two stages to Nautical.
In return for an initial 25% stake, Nautical will fund and perform studies into the feasibility of a development. It will have a further option to increase the stake to 65% and assume operatorship if the partners decide to drill an appraisal well by end-2011, in which case Nautical would fund the entire cost.
Providence currently holds a 72.5% interest in the license, with Atlantic Petroleum assigned 18.3%, and Sosina Exploration 9.2%.