Canamens to Take 25% Interest in North Sea Block 9/2b
Nautical Petroleum has entered into an agreement with Canamens (UK) Limited concerning Nautical's interests in North Sea Block 9/2b and an acquisition agreement with International Energy Group AG.
Under the terms of the Canamens agreement on North Sea Block 9/2b, Canamens will acquire a 25% interest and will fund its equity share of the current appraisal well being drilled on the Kraken discovery with a premium to Nautical. For all future activity on Block 9/2b, Canamens will bear its 25% equity share.
Under the terms of the acquisition agreement with IEG AG, Nautical Holdings Limited, a wholly owned subsidiary of Nautical, will acquire 100% of the share capital of UAH Limited for cash consideration of one pound sterling. UAH Limited, through its shareholding in Nautical Petroleum AG, owns a 25% beneficial interest in North Sea Blocks 9/2b and 3/27a.
The net effect of these two transactions is that Nautical has retained its 45% interest in Block 9/2b, and has increased its interest in Block 3/27a from 45% to 70%.
The planned seismic survey on Block 3/27a has recently been completed and the data processing should be completed early in 2008.
Commenting on the transactions, Steve Jenkins Chief Executive of Nautical said:
"We welcome Canamens' participation in the Kraken appraisal program and are pleased to have secured the interests previously held by IEG AG through the UAH acquisition. In combination, these transactions add value for Nautical's shareholders and are a good fit with our corporate strategy."
Greg Coleman, CEO of Canamens said
"Canamens is new to the North Sea and is very pleased to be entering into this agreement with Nautical for Block 9/2b. Although a mature province, we believe there is still good business to be done in the North Sea."
The Canamens agreement remains conditional on consent of partners and of the DBERR.
The UAH acquisition is a "related party transaction" as defined by the AIM Rules. Nautical's Independent Directors, Philip Dimmock and Patrick Kennedy, having consulted with KBC Peel Hunt, its Nominated adviser, consider that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.