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

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


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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.

Rated a buy in Shares Mag :

From : http://www.sharesdigital.com/


Nautical finds its sea legs NPE

Published date:Thursday, October 11, 2007

Nautical Petroleum (NPE:AIM) Finals PTP: -0.86m (-7.1m) Divi: n/a (n/a)

A busy period ......................................... full article not posted ........................................................................................................trading at just over 12p.

Shares says: Drilling in the near-term has the potential to add significant value to the stock.

Good news, placing oversubscribed and they are now what you could class as very fully funded.


Nautical Petroleum PLC
17 October 2007

Not for release, publication or distribution in or into the United States,
Australia, Canada, the Republic of Ireland, the Republic of South Africa or
Japan. This announcement is not an offer for sale of securities in the United
States. Securities may not be offered or sold in the United States absent
registration or an exemption from registration under the U.S. Securities Act of
1933, as amended. The issuer of the shares has not registered, and does not
intend to register, any portion of the offering in the United States and does
not intend to conduct a public offering of its securities in the United States.

Certain definitions apply throughout this announcement and your attention is
drawn to Appendix 2 to this announcement where such definitions are set out in
full.


NAUTICAL PETROLEUM PLC
('Nautical' or the 'Company')

PLACING OF ORDINARY SHARES

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 that it
has raised approximately 20 million before expenses through a placing of shares
by KBC Peel Hunt Ltd (the 'Placing').

190,476,191 new ordinary shares of 1p each ('Ordinary Shares') ('Placing
Shares') have been conditionally placed with institutional investors at a price
of 10.5p per Placing Share.

Nautical continues to build a broad base of heavy oil assets focused on the East
Shetland Platform of the UKCS, augmented and complemented by carefully selected
discoveries/blocks in the UKCS and Europe. Nautical remains the only UK listed
company offering pure exposure to heavy oil development and near term, low risk
exploration for considerable resources.

By the end of 2007, Nautical intends to have drilled its first two operated
wells and participated in a third well. The Kraken appraisal well is expected to
be drilled in October 2007 on the crest of the structure, with the intention of
confirming the Company's model of thicker reservoir development, hydrocarbon
column and best estimate contingent resources of 23.9 million barrels net to
Nautical. Kraken will be followed by an exploration well on the Mermaid prospect
(directly south of the Mariner field). The well is planned to intersect
hydrocarbons in the Maureen and Heimdal horizons confirming net best estimate
resources of 64.5 million barrels. Concurrently an appraisal well is to be
drilled on the Grenade discovery which, if the reservoir is as prognosed, is
expected to yield first production in Spring 2008.

Nautical also plans to drill the Catcher Prospect in early 2008. It is intended
that this will be followed by an exploration well on the Selkie Prospect.
Assuming that the seismic data currently being acquired over block 3/27a firms
up a target over the Hydra prospect, this will lead to a third well in 2008. Up
to two further appraisal wells are expected to be drilled in 2008.

The above program together with other activities is estimated to lead to a net
capital spend of approximately 9 million for the six months to 31 December 2007
and approximately 11 million for the twelve months to 31 December 2008.

The existing cash resources of the business together with the net funds raised
through the Placing (estimated to be approximately 19 million) will be used to
cover the estimated net capital expenditure set out above, and the other
activities and expenses of the business. On the basis of current estimates, it
is envisaged that 3 million would be used as a contingency against drilling
cost overruns in 2007; 7.5m - 10m would be used to fund drilling in 2008, with
the balance used to fund the Mariner field development programme, assess further
license acquisition farm in opportunities and for working capital.

Under the terms of the Placing Agreement, KBC Peel Hunt, as agent for Nautical,
has agreed conditionally to use its reasonable endeavours to procure subscribers
for the Placing Shares at 10.5p per share. The complete terms and conditions of
the Placing are set out at Appendix 1 to this announcement. The Placing
Agreement is conditional, inter alia, upon Admission occurring. The Placing is
not being underwritten.

Application will be made to London Stock Exchange plc for the Placing Shares to
be admitted to trading on AIM, with Admission expected on 22 October 2007.

The Placing Shares will, when issued, rank pari passu in all respects with the
Existing Ordinary Shares including the right to receive dividends and other
distributions declared following Admission.

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

I am pleased that Nautical has both secured funding, for our extensive appraisal
and exploration programme and significantly strengthened our institutional
shareholder base, through the Placing, which was oversubscribed. The Directors
believe Nautical has assembled an exciting portfolio of assets, and we look
forward to drilling up to 8 wells before the end of 2008 and progressing Mariner
towards production.

Looks pretty good to me PP.

Nice to have an oversubscribed placing at any time more so now just before the drilling starts.

Interesting times.

Think I will have to revert to my alter ego and update the header, steelwatch does it so much better than me.

Despite the fall we're seeing this looks like good news. Secured funding, stronger investor base and development of the drilling programme which is what we've been waiting for. And over-subscribed. Won't be too long before we're heading back higher.

http://www.thisismoney.co.uk/investing-and-markets/tips-and-tactics/article.html?in_article_id=425439&in_page_id=23

18 October 2007, 12:03pm

Shares magazine is tipping Nautical Petroleum. It was considered something of a high-risk strategy four years ago to concentrate on finding sizeable deposits of heavy oil in the North Sea. Heavy oil was and still is to some extent, the Cinderella of the business. But there is a better than evens chance of its share price trebling to 25p if three wells to be drilled this year come up trumps. And with UK oil production starting to fall quickly the new fields will be increasingly precious. The company is also hoping that the Government will offer better tax breaks for heavy oil development. - Buy

Papal, is that a typo, trebling to 25p or an old article?

No idea.........presume the article was written a few weeks back, and published only recently...........or its a typo.