Nautical Farms-In to Northern Irish License
Nautical has acquired a 20 percent equity interest in License PL1/10 over the Central Larne-Lough Neagh Basin, onshore Northern Ireland, operated by InfraStrata.
The Central Larne-Lough Neagh Basin is covered by Tertiary basalts that are up to 600 meters thick. In partnership with InfraStrata, Nautical will be applying recently developed seismic acquisition and processing techniques utilized in exploration below thick basalt sequences to delineate prospects. Although there is sparse or no seismic coverage over the license area the Company believes that there is a thick prospective sedimentary section across the basin with two leads identified so far.
In return for a 20 percent equity stake, Nautical will fund its share of costs for a seismic acquisition program during 2011 together with a portion of InfraStrata's seismic costs. The seismic program aims to identify a suitable drilling target for an exploration well, with a drill-or-drop decision required within three years. Under the terms of the farmin agreement, Nautical is required to pay a portion of InfraStrata's costs towards the exploration well in the event that such well is successful.