Nautical Petroleum Purchases 22% of St. Laurent Permit
|Friday, November 25, 2005
Nautical Petroleum plc, the developer of heavy oil assets of the UK and Europe, today announces that it has reached agreement to purchase 22% of the St Laurent Permit, onshore France, from Masefield Energy Holdings AG ("MEHAG") for £47,500. The agreement is subject to approval from the Ministère de l’Economie, des Finances et de l’Industrie.
MEHAG, a substantial shareholder in Nautical, has a 22.000% interest in the St Laurent Permit, the remaining interest being held by Egdon Resources plc (33.423%), Sterling Resources plc (33.423%) and Eagle Energy Limited (11.154%).
Consideration is to be satisfied by the issue of 387,755 new ordinary shares of 1 pence each.
The St Laurent Permit is located in the Aquitaine Basin, South-West France, approximately 20km North-West of Lacq Giant Gas Field. To date 15 hydrocarbon fields within the Aquitaine Basin have produced 13TCF of gas and 104 million barrels of oil (mmbo). The St Laurent Permit contains the Grenade heavy oil discovery which the operator estimates contains up to 485 mmbo of oil in place, with gross technical recoverable reserves of 12.6 mmbo (2.7 mmbo net to Nautical) according to an independent technical evaluation conducted by RPS Troy Ikoda.
The discovery well, Grenade-Sur-Ardour-1, drilled by SNPA (Total) in 1975, intersected a 97 metre oil column in Cretaceous Albian carbonates. 8,000 barrels of oil have been produced from a series of discrete tests over a 10 year period.
A seismic campaign to acquire 40 kilometres of 2D and 12km2 of 3D seismic was commenced on 21st November to further define the structure; with a contingent appraisal well planned for 2007.
Commenting on the acquisition Steve Jenkins CEO said:
“This acquisition is aligned with our strategy to secure discovered heavy oil reserves and represents Nautical’s first onshore block, complementing our extensive UKCS portfolio. We look forward to appraising this considerable resource with the operator Egdon Resources Plc."