theres some thing in the air with this one, note how its risen from 3.1/4p to 4.3/4p in 3 days with no news reports

ake thanks for that..... holding my breathe

its on the move chaps

get a bit of bully now

while you can

akel44 - do you have a website for them?

they had it dismantled when they were close to collapse,
i suggest you get your info from uk-wire, till a new site
is set up under the new name

Thanks

The Sad Saga Of Bullion Resources Ends
And A Bright Future Opens As Nautical Petroleum

theres still time for a little bully
it seems none of you are even looking at this one
so to make it more interesting,i will post something
to open your eyes!
just hang on in there,

Buy Nautical Petroleum
Suggests Stewart Dalby of Oilbarrel.com
The latest turnaround of Malcolm Burne, mining and oil entrepreneur
at natural resources investment group AIM-quoted Golden Prospect,
is the desultory mining company Bullion Resources. Bullion became
a cash shell with some 1.5 million pounds in the kitty.
The upstream oil and gas interests and non-trading assets of
Masefield AG, which is a global trader of crude oil and refined
oil products have been injected into Bullion.
It has become Nautical Petroleum in this reverse takeover
in a deal worth over 20 million.

Bullion Resources was suspended at 6p. When Nautical shares
went live recently they immediately rushed up to 10.5p.
But there could be a lot more to come.
It is interesting story with plenty of upside.

Like other oil groups Nautical has honed in on the North Sea.
These groups have become known as scavengers picking up
parcels of assets which the big boys BP, Shell and Chevron Texaco
deem too small or "immaterial" to their interests.
Without the vast overheads of the majors smaller groups
can put together various blocks and squeeze extra output
from the mature fields. With commodity prices high, groups
like Paladin Resources and Venture Production have
flourished in recent years by scavenging.

Nautical is different in that it has decided to go for
discovered heavy oil in the United Kingdom Continental
Shelf in the North Sea. " Heavy Oil!" I hear you say.
"Surely that cannot be a good idea. Recovery rates are low?"
The heavy oil sells at a discount to Brent Crude,
the benchmark for North Sea production. Many groups,
having discovered heavy oil, have decided to leave it there.
Chevron Texaco is a case in point - it has never developed
the discoveries in the Mariner field in the East Shetland Platform.

Critically, through its association with Masefield and
through a key acquisition, Nautical has acquired
exclusive technology to process the heavy oil and market
it for power generation at economically viable prices.

Britain's Department of Trade and Industry (DTI) has been encouraging investment in the North Sea where it says there could be
14 billion barrels of unexploited oil in various pools and pockets.
However, after several years of scavenging the smaller
groups are finding it increasingly expensive to pick up
new fragments. The larger groups are tending to hold on
to their little bits and pieces to gain a couple of years
more revenue while oil prices are sky high. If they do sell,
it is at top prices.

The first thing to be said about Nautical's operation is that
because it is heavy oil, which for all intents and
purposes is "stranded" and unloved, the price of entry is low.
While not revealing exact figures, Nautical has gained
acreage by buying the existing 2D and 3D seismic at
minimal cost and has committed to drill and develop the block.
There are no expensive exploration costs.

As a start Nautical has acquired a 100 per cent interest in
two licences in the United Kingdom Continental Shelf,
namely Licence P1077 over block 9/2b and Licence P1203
over block 3/27a. Licence P1077 contains the 9/2-1A
oil discovery and is contiguous with licence P1203.
Both are located on the East Shetland in the vicinity of
the well-documented Bressay and 9/3 heavy oil discoveries.
The valuation by Landmark Eame (a subsidiary of Halliburton)
of the North Sea proven and probable reserves for licence block 9/2 is 51 million barrels of oil, with risked upside potential
in block 9/2 of 295 million barrels in place.

Licence P1203 (Block 3/27a) is contiguous to the north
with block 9/2b.Seismic data purchased by Nautical on the
wells in the vicinity of the block have generated several
leads at the Heimdal Sandstone member level, and one significant
lead at the Upper Jurassic Humber group in the north of the block.

Although the oil discovered at 9/2-1A is 15 per cent API,
Nautical is convinced it will flow, and that, with water
injection, recovery rates of 30 per cent can be achieved.
But it is what comes afterwards which looks to be Nautical's
ace in the hole.

As a third asset the group has been able to acquire ownership
of specialised heavy crude oil production and processing
equipment designed and supplied by Halliburton for the
Extended Well Test (EWT) programme undertaken successfully
on the Mariner oilfield by Chevron Texaco in 1997.
This equipment is suitable for use in testing heavy oils down
to 10 per cent gravity.
The equipment can currently handle up to 40,000 barrels of
oil and liquid production per day, of which 25,000 barrels can be oil.

Although Heavy Acidic Crude Oils can sell at a discount
of around US$3 a barrel to Brent Crude, this so called
Multi Phase Super Fine Atomised Residue (MASR) process
allows Heavy Acidic Crude Oils to be used for power generation
and make them competitive with gas, coal and fuel oils.

The sums are complex but to put this another way, and briefly:
if you assume a model of a US$24.75 a barrel for Brent Crude,
then once the Heavy Oil is put through the "cracker" and separated
into light products - oil for upgrading and heavy fractions -
then the compound overall price which can be realised is US$26.50

meaning Nautical can add value and make heavy oil production
commercially viable.

We say Nautical has made a start with its two blocks.
There is scope for plenty more. The UKCS is thought to contain large discovered, undeveloped oil in place of 5 billion barrels.
There is large potential additional oil in place of 5 to 6 billion barrels. This is capable of producing 250,000 bopd plus by 2008.

That is a lot of oil, particularly if you can sell it profitably.
The shares are attractive.

Stewart Dalby edits the definitive source of information and comment on oil exploration stocks - www.oilbarrel.com -

looks good