Nautical Petroleum plc, the developer of heavy oil interests on the UKCS and mainland Europe, announced that it has completed its farm out agreements with Canamens Energy North Sea whereby Canamens will acquire a 30% interest in the North Sea Block 8/25a. The other farm out agreements also included in Nautical's discussions with Canamens concern Blocks 9/2b and 3/27a.
Under the terms of the agreement, Canamens will fund their ongoing 30% interest of the current well plus a portion of Nautical's costs. The farm out terms provide for a $20 million cap on the Selkie well expenses against a current estimate of $16 million.
Nautical now retains a 30% interest and Celtic Oil Limited (wholly owned by SK Energy) retains a 40% interest. On completion of the well, and subject to partner and BERR approval, Canamens will take on operator responsibility for Block 8/25a.
All of the necessary consents and approvals have now been received from BERR.
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