Nautical Successfully Appraises Kraken Well

Kraken Discovery
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Nautical Petroleum reports the results of the 9/2b- 2 Kraken appraisal well drilled by Nautical and its partners.

The well 9/2b- 2 was drilled to a depth of 4378 ft subsea, 2.7 kilometers north of the 9/2- 1 Kraken discovery well and encountered oil-bearing Palaeocene Heimdal sands at a higher elevation than in the discovery well. A full evaluation of the hydrocarbon bearing intervals in 9/2b-2 has been carried out and reservoir fluid samples obtained for analysis in the near future. Pressure measurements indicate that the 9/2b- 2 reservoir sands are likely to be in communication with the Heimdal oil reservoir in 9/2- 1.

9/2b- 2 encountered oil down to (ODT) 168 feet deeper (4008 ft subsea) than in the 9/2- 1 well, giving a hydrocarbon column of at least 252 feet. This confirms a substantial accumulation, since the ODT in 9/2b- 2 is 71ft lower than the predicted maximum oil - water contact in the pre - drill reserves estimations.

Initial analysis of the samples and the downhole pressure gradients indicate that the 9/2b- 2 oil is lighter (18.4degreesAPI) than estimated from a poor quality sample in the 9/2- 1 discovery well, and substantially lighter than the nearby discoveries such as Bressay.

Reservoir quality is excellent with high porosity and permeability over 79 feet of net pay. Oil shows were also encountered in Cretaceous Conglomerates towards the base of the well. The data from the well will be integrated with the reprocessed 3D seismic and the newly acquired high resolution, high-density 2D seismic (in the north west of the block) to determine the revised hydrocarbons in place, and to locate the next appraisal well.

The interests held in Block 9/2b are Nautical Petroleum plc 45%, Celtic Oil Limited (wholly owned by SK Energy) 30% and Canamens Energy North Sea Limited 25%. This is Nautical's first operated well.

On completion of the well, the Byford Dolphin will move to spud an exploration well on the Mermaid Prospect in Block 9/11c.

Commenting on the well result, Steve Jenkins, Chief Executive of Nautical said:

"I am extremely pleased with our first operated well as this is a very positive result for such an aggressive appraisal well. The results confirm Kraken to be a substantial oil accumulation and in place resources are likely to be ahead of expectations. Encouragingly, the excellent quality Heimdal reservoirs appear to be in communication between the two wells, confirming sand distribution over a large area."

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