UK's DTI Extends Nautical Petroleum's Lease for Block 9/2b
Nautical Petroleum has received DTI confirmation of the extension of License P1077 over Block 9/2b. Nautical has also been appointed Exploration Operator in the Block. The Secretary of State has agreed that the conditions for continuation of the license past its second anniversary have been met and that the license may therefore continue into a third year.
The continuation of the license will enable Nautical as Exploration Operator to proceed with the drilling of an appraisal well on the 9/2 -1A oil discovery. A two year Technical Report has been submitted committing to drilling a firm well before October 2007 and the Company is in the process of securing a rig.
Reserves for the block are estimated by Halliburton subsidiary Landmark EAME Limited's at 51 mmbbl, with risked upside in place potential of 395 mmbbl. The reprocessing of 215km2 of 3D seismic over the block is complete and the data quality had been improved giving greater clarity at reservoir level. Additional potential has been identified at other horizons.
Steve Jenkins, Chief Executive of Nautical, said: "Nautical is now moving into the next phase of appraising block 9/2b, one of the assets with which we launched our strategy earlier this year. As operator we are now well placed to develop our plans for the block to the drilling of a well and bringing the asset on production."