Nautical Petroleum plc is an independent hydrocarbon exploration and development company listed on the London AIM. The company's mission is to acquire, develop and add value to discovered heavy oil, initially on the United Kingdom Continental Shelf.

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Download Nautical 2007 Annual Report

Hardman & Co. Research note

http://www.abcmoney.co.uk/news/282007142484.htm

.......................................Nautical Petroleum PLC earlier this week signed a farm-out agreement with Silverstone Energy, whereby Silverstone will acquire a 10 pct interest in the North Sea Block 9/11c.

Nautical will retain a 50 pct interest as operator and Celtic Oil will retain a 40 pct stake.

Under the agreement, Silverstone will pay 20 pct of the costs of drilling the imminent vertical exploration well on the Mermaid prospect, scheduled to be spudded in late October 2007.

While the company's present exploration and appraisal commitments are covered by farm-outs and the current cash position, in the longer term, debt finance is expected to play a significant role in funding the developments, according to Tony Alves of KBC Peel Hunt.

The analyst points out that the shares are at a discount relative to his 13 pence a share Core NAV estimate, which itself has potential to grow strongly on successful drilling over the next 12-18 months.

On the results front, Alves expects year to June 2007 pretax losses to narrow significantly -- to 1.7 mln stg from 7.2 mln.

Meanwhile, Hardman & Co's cash flow models value Nautical's core discovery portfolio at 16.2 pence a share which, with the risked exploration prospects, rises to 26 pence a share.

Nautical's autumn drilling programme is now set to begin in earnest and Hardman expects a raft of news flow in the next few months with drilling at Kraken, Grenade and Mermaid.

The drilling at Kraken is effectively appraisal work. If successful, Grenade should provide useful cash flow, but it is a small component in Nautical's portfolio, Hardman points out.

The material event for investors this autumn will be the drilling at Mermaid. Should the well prove the discovery post farm-out, Hardman estimates it will add 47 mln stg to Nautical's core asset base.

On success, this would bring Hardman's core value up to over 20 pence a share with an overall valuation of 30 pence a share.

The corporate research outfit predicts year to June 2007 pretax losses of 1.6 mln stg......................................................

Dear cynic.

The obvious reason to chuck some money in here was because I could buy and range trade between 7p and 9 p quite happily now averaging 3.86p per share.

Not sure how long I will stay in, but every little helps as they say in Sainsbury's.

Not sure what they mean but there you go.

Heavy oil extraction can be a problem but as you will know NPE think they have a much more efficient way of extracting a grater percentage than others due to new technology.

We will see, meantime next new drill round to start very soon could earn me an even better average.

http://www.investegate.co.uk/Article.aspx?id=200710020701519300E

Nautical Petroleum PLC
02 October 2007

Nautical Petroleum plc
('Nautical' or 'the Company')

Final Results
for the 12 month period to 30 June 2007

Nautical Petroleum plc (AIM: NPE), the independent E&P company focused on the
development of heavy oil assets in the UK and Europe, today announces its Final
Results for the 12 months ended 30 June 2007 and gives notice for the convening
of the Annual General Meeting ('AGM') of the Company to be held at Hesperia
Hotel, 2 Bridge Place, London SW1V 1QA on Wednesday, 11 December 2007 at 12.00 noon.

HIGHLIGHTS

Nautical's strategy over the last 24 months as an early mover in the heavy oil
sector has been to build a world class portfolio of quality resources at low
cost. The imminent drilling of its first 3 wells next month marks the beginning
of a new phase and will place the company in an excellent position to confirm
potential oil resources of over 100 mmbo:

Portfolio Activity

Success in all 24th round applications: 4 licences (3 traditional, 1
promote) with 2 discoveries and 1 firm well.

Completed the farm-out to Celtic Oil Limited to share risk and cost on 5
wells and seismic, including the Kraken and Mermaid Wells.

Agreement signed to farm-out 10% interest in Mermaid to Silverstone
Energy Limited

Significant evaluation of portfolio to de-risk prospectivity:

Mermaid well targeting 129 mmbo best estimate prospective resources

Kraken well to firm up 53 mmbo in best estimate contingent resources

Grenade well to firm up 12.6 mmbo best estimate contingent resources
ahead of planned production in 2008

Imminent activity to include:

Extensive seismic and drilling programme through to the end of 2008

Continued expansion of portfolio through acquisition and licence
round awards

Nautical now has:

. 13 UK licences (17 full and part blocks) and 1 French licence. Nautical
operates 9 of the UK licences.

. Eight discoveries on the portfolio

. 22 mmbo probable reserves; 56 mmbo contingent resources; and a further
97 mmbo prospective resources.


Financial & Corporate

Resourced for imminent drilling and seismic activity

Cash balance of 8.9 million at 30 June 2007

Loss of 0.4 million

Commenting on the results, Steve Jenkins Chief Executive of Nautical said:

'Our skills in heavy oil - and knowledge of the potential of the UKCS is leading
us to work with many multinational oil companies who appreciate the underlying
value of this un-utilised hydrocarbon potential.'

'Nautical has built a world class portfolio over the last three years, with low
risk prospects and discoveries, which will spearhead our drive to secure
reserves - ahead of imminent production in 2008.'

Good to be on board for the medium term in my opinion.

http://business.timesonline.co.uk/tol/business/markets/article2578332.ece

Tiddler to watch

Keith Morris, an analyst at Evolution, believes that Nautical Petroleum, the explorer for heavy oil, up 1p to 11p, could triple its share price in the coming months if drilling is successful in three wells in the North Sea. Oils presence in the region is well-established and costs are spread among third parties. He has a target price of 17p.

Another nice move higher as a bit more awareness gathers following today's Times tip.

Yep.

Sometimes it pays not to have a jaundiced eye on little E&P's.

This is a case in point.

Oct 3rd Hardman Update :

http://www.capmarkets.com/ViewFile.asp?ID1=77476&ID2=176141281&ssid=1&directory=12925&bm=0&filename=Nautical_Oct07.pdf


.

That's some Hardman update. I read most of their analysis and monthly reports and this comes across incredibly well in my opinion.

On a nice little rise today, long may it continue.

Broker has a 17p target for where NPE are now, with the potential for over 30p should the coming drilling come out good. Means its presently undervalued and the high impact upside is not presently in the price - which makes the perfect play for the keen eye imv.

Nice 500K buy at 13.23 (above the offer which is 13p).

More talk on Edison report dated today of high potential and reduced risk with discovered and near term exploration prospects.

Price continues to get squeezed now as we head to broker 17p target

Well, I have to say this is another good one for me, I have tightened my stop behind the sp just a little now but I dont thinkl it will drop back anyway.

http://www.growthcompany.co.uk/recommendations/260487/spate-of-drillings-makes-nautical-a-buy.thtml

Spate of drillings makes Nautical a buy - BUY

Companies: NPE 05/10/2007


Heavy oil specialist Nautical Petroleum has done little wrong since it came to market two and a half years ago, having lifted its discovered oil base nearly all in the North Sea to around 120 million barrels. But, by parking a large chunk of its equity with a hedge fund, it has saddled its shares with a recurrent seller whenever they have reached the low to mid-teens.

Now, however, the shares should have a clear run as Nautical, fronted by chief executive Steve Jenkins and chairman Ian Williams, engages in the most active drilling programme of its short life. Three wells are to be drilled in the space of around three months. Two will test the Kraken prospect in the North Sea and the Grenade prospect in south-west France. But the third is the biggie. This, it is hoped, will prove up the North Sea Mermaid prospect, which is thought to contain 129 million barrels of oil.

Nautical has just farmed out a ten per cent stake in Mermaid to Silverstone Energy, which, in return, will bear 20 per cent of the drilling costs. Nautical retains 50 per cent in the field and remains the operator.

Taken together with other exploration and development work now planned, Nautical hopes to prove up attributable reserves of more than 100 million barrels and confirm the prospectivity of a further 100 million.

In a recent note on the company, Hardman & Co put a net present value of 26p a share on the companys core and exploration portfolios. If the Mermaid well proved up a discovery, it said, that figure would rise to over 30p. Meanwhile, the shares have picked up a touch over recent weeks, but to just 10.25p.

One other recent development has been positive for Nautical. Chevron has found a buyer for its dominant stake in the North Sea Mariner field, where Nautical has a 26.7 per cent interest. Nautical is in no position to accelerate the development of Mariner, but the new buyer, the merging Norwegian entities Norsk Hydro and Statoil, are expected to get moving on Mariner early in the new year. Under various scenarios, Nautical could up its stake in Mariner, so the latest development is bullish in the extreme.

Nauticals shares have a neglected look to them. The market capitalisation of 110.5 million looks anything but realistic. I reckon there is at least 50 per cent upside on a six-month view, more over the long term.

Thanks Papal for the growthcompany update. Makes good reading and ticking higher again this morning. Exciting times ahead.

Yep, looks that way :)

A few steady buys coming through at the close to maintain the upward bias here.

The good thing of late is that most of the sells have been O trades, and from PI's. The buys have been AT and from insti's and the like. A good consolidation after a good rise, getting out lots of weaker smaller holders, and bringing in bigger safer hands.....which bodes well for the next leg upwards.