21.09.2010 - Kraken Exploration

Nautical Petroleum plc

  Successful Kraken Exploration Sidetrack
 
Nautical Petroleum (AIM:NPE)is pleased to announce the results of the Kraken exploration sidetrack located on UK Central North Sea block 9/2b, in which Nautical has a 35 per cent. equity interest.

The 9/02b-4z sidetrack was drilled to a total depth of 5,552 feet Measured Depth (MD). It successfully encountered oil bearing sands in both the Heimdal Unit III and Heimdal Unit I reservoirs. The top of the Heimdal III was encountered at 4,417 feet MD and has a true vertical net oil pay of 42 feet. The Heimdal Unit I has a true vertical net oil pay of 35 feet. Evaluation of the Logging While Drilling (LWD) data indicates that average porosities in both units are very high and may exceed 40 per cent. with oil saturation of up to 90 per cent.. The Heimdal I reservoir has significantly higher net to gross and porosity than previously encountered in any Kraken well. No Oil Water Contact (OWC) was encountered in either the Heimdal Unit III nor the Heimdal Unit I. The sidetrack will now be plugged and abandoned prior to the rig moving off location.

Steve Jenkins, Nautical's Chief Executive Officer, commented:

"This is a fantastic outcome for Nautical, which justifies our decision to complete the activity on a sole risk basis. The sidetrack has encountered a substantial oil column, which will result in the reclassification of significant oil volumes from prospective to contingent resources. Those volumes will now be assessed and incorporated into our planning for an enlarged Kraken development."

Copyright ©2011 Canamens Limited. All Rights Reserved.