Nautical announces farm out agreement

Nautical Petroleum plc, an independent hydrocarbon exploration and development company listed on the London AIM, has entered into a farm out agreement with Canamens Energy North Sea Limited (Canamens) whereby Canamens will acquire a 35% interest in the North Sea Block 3/27a.

Canamens will fund their ongoing 35% interest of the current well plus a portion of Nautical’s costs and a contribution to past costs.

Block 3/27a lies immediately to the north of block 9/2b, on which, at the end of 2007, Nautical and its partners drilled the successful appraisal well 9/2b on the Kraken discovery in the Heimdal Sandstone.

The integration and interpretation of 1413 km of recently acquired high density 2D seismic with the existing 100 square km of 3D seismic has confirmed two prospective horizons in 3/27a - a pinch out in the Heimdal and a wedge of Jurassic sand.