Nautical Underscores 9/2b-1 Well Results, Still Positive about Kraken

Nautical Petroleum

Nautical Petroleum has announced the result of the 9/2b-3 well, drilled by the Sedco 704 semisubmersible drilling rig.

The well was spudded on the September 21, 2008 and the rig was released on October 9, 2008.

The well was located on the extreme north eastern flank of the mapped structure with the purpose of confirming the oil-water contact and of proving upside (P10) resources. Preliminary analysis of the well log data indicates the absence of sandstone at this location. Although disappointing, in terms of proving upside resources, the results do not diminish the opportunity for development of the already substantial reserves in the core, south and west areas of the Kraken discovery, proven by the first two wells (9/2-1 and 9/2b-2), which encountered oil of improving quality.

Therefore, the best estimate for the contingent resources in the core area defined by the discovery wells will be largely unaffected by this result since lateral variations in the Heimdal sand thickness were already allowed for in the estimate. The Heimdal sands exist widely and have oil shows over the area, being present in Bressay (7km north east of the 9/2b-3) and in Bentley (11km to the east).

Nautical will therefore now focus on appraising the core, south and west areas still with the aim submitting a Field Development Plan in 2009 and achieving first oil in 2012.

Current interests held in the block 9/2b are as follows:

  • Nautical Petroleum plc (Operator) 35%
  • Canamens Energy North Sea Limited 35%
  • Celtic Oil Limited 30%

Steve Jenkins, Chief Executive Officer of Nautical said, "The 9/2b-3 well allows Nautical to better define our development plan for the Kraken discovery. The submission of the FDP for Kraken remains on track for 2009, with first oil anticipated in 2012."