Nautical Secures Two Rig Slots

Nautical Petroleum plc, which specializes in developing heavy oil assets in the UK and Europe, reported that it has secured two drilling rig slots from The Peak Group in mid-2007 that meet the company's requirements and program for drilling the Kraken and Mermaid prospects in the UK North Sea.

The Kraken discovery on Block 9/2b has best estimate contingent resources of 53 million barrels of oil (gross) of which Nautical has a net interest of 23.9 million barrels of oil following the recent farm-out to Celtic Oil (a subsidiary of SK Corporation). Nautical has a 45% equity interest and is the operator. Nautical and Celtic Oil are committed to 3D seismic and two wells on the 9/2b license.

The Mermaid prospect on Block 9/11c has best estimate prospective resources of 129 million barrels of oil (gross) of which Nautical has a net interest of 77.4 million barrels of oil. License 9/11c forms part of the multi block farm out to Celtic Oil. Nautical has a 60% equity interest and is the operator. The license carries a commitment to drill one well.

Both site surveys for this drilling program have already been acquired.

Commenting on the securing of the drilling rig slots, Steve Jenkins Chief Executive of Nautical said:

"We are delighted to have secured these slots through The Peak Group. We are now able to complete the remaining preparatory work and move ahead with our program of appraising and proving up our resource base.

Kraken and Mermaid are important prospects for the company as their contingent and prospective resource estimates total over 100 million barrels of oil which we plan to convert to reserves through an agreed drilling and appraisal program. Nautical continue to develop its portfolio in the North Sea and Europe and we look forward to driving towards production during 2007."

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