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.

Latest Company News

Download Nautical 2007 Annual Report

Hardman & Co. Research note

out for now and hoping for an eventual retracement to get back in, but knowing my luck it'll be another asos.. backing EO. in hope.,.

or RKH first the strike then... the analysis then confirmation of flow test all to come

anybody know where the rig goes after drilling for eo. is it back to npe to see what they actually have??

some suggest thisfind is 197mbo and worth over 750m to the NAV. With newsflow of Catcher to come and more analysis on this find the sp can only push higher imo

Nautical Petroleum plc has been 'nominated' by Shares readers in the Best AIM Company Achievement category. The Awards ceremony is tonight.

Nominations are:

Blinkx plc
H&T Group plc
Hightex Group plc
Mulberry Group plc
Nautical Petroleum plc
Rockhopper Exploration plc

AGM, useful time tables.

Click here for AGM notes

One to keep an eye on

http://www.dailymail.co.uk/money/article-1351230/MARKET-REPORT-GEOFF-FOSTER-Nautical-tipped-lucky-strike.html#ixzz1CJBIzfHC

COS on this is about 90% after XEL success

getting into the 5 mark now, northsea a good place to be at the mo along with EO. and XEL. I'm in all three and waiting.,.

No one seems to have noticed NPE has broken through 5 barrier and holding, must be something stirring.,.

didn't take advantage of 5 but glad i got out at 440p north sea gone quiet for now.,.

For immediate release
6 July 2011




Nautical Petroleum plc



("Nautical" or the "Company")



Kraken 9/02b-5 Appraisal Well Commences

Nautical Petroleum plc (AIM:NPE), is pleased to announce that the drilling of the 9/02b-5 well has commenced on the Kraken discovery located on North Sea Block 9/2b.

The appraisal well spudded at 13-30 hrs this afternoon. The well is being drilled approximately one kilometre to the south west of the 9/02-1a discovery well, to further appraise the core area of the field and establish a commercial flow rate.

Initially a pilot well will be drilled, cored and logged. This will be followed by a horizontal sidetrack of up to 600 metres. A Logging Whilst Drilling (LWD) suite will be run over the horizontal section to provide further understanding of the reservoir quality and distribution. The horizontal sidetrack will be completed with a gravel pack and tested using an Electric Submersible Pump (ESP). Upon completion of the drilling programme the well will be suspended to be used as a future development well.

The drilling is being performed by the semi-submersible rig the Wilhunter and is expected to take approximately 60 days in total, subject to weather and any operational downtime. The initial pilot well is expected to take 20 days.

Nautical has a 50% interest in North Sea Block 9/2b and is the operator. The other participants are Celtic Oil Limited, a fully owned subsidiary of First Oil Expro Limited (30%) and Canamens Energy North Sea Limited (20%).

Commenting on this announcement Steve Jenkins, Chief Executive Officer of Nautical said:

"We are delighted to commence this key activity, which is aimed at confirming Kraken's commerciality. Assuming success, it is our intention to submit a preliminary Field Development Plan (FDP) for the first phase of the development to the Government by September 2011, with a target for full FDP approval by June 2012. Success will represent a significant step towards the commercialisation of Kraken."

Not only GKP thats had a nice rise today, maybe something brewing.,.

Numis note out today:

The 9/02b-5Z appraisal well on the Kraken heavy oil field is the largest share price catalyst for Nautical Petroleum this year. With a result due as early as next week, we look at the potential NAV impact of a commercial Kraken development.

Kraken appraisal well result due as early as next week. Based on its 40-day drill time, flow testing from the 600m horizontal section of the Kraken appraisal well should begin in the next few days with a result expected about a week later. The threshold for commerciality is c.2,500bopd, with one of the key risks being control of sand production from what is a particularly porous (38%) Heimdal III reservoir.

Commercial flow rates would de-risk our 245p/sh Kraken valuation. At present we do not believe Kraken is being valued by the market, with Nautical's cash (88p/sh and stake in Catcher (199p/sh) roughly equal to the current share price. We value Nautical's stake in Kraken at 245p/share on a risked basis, and if the field is deemed commercial we would expect a significant portion of this value to be unlocked - Kraken would become Nautical's largest development asset by net resources (83mmbbl in the Heimdal III sands), with even further upside potential in the Heimdal I.

Minimal downside risk if Kraken disappoints. A non-commercial well result would cut our Nautical NAV by around 40% (-274p/sh), taking Nautical's P/NAV to 0.65x, in line with the E+P sector and suggesting limited further downside from current levels.

Fingers crossed.,.

Kraken 9/02b-5Z Tests at 4,550 barrels oil per day

Nautical Petroleum plc (LSE: NPE) is pleased to announce that the Kraken 9/02b-5Z horizontal well, located in UKCS North Sea Block 9/2b, has been successfully completed and tested.

The horizontal section of the well was drilled from 5,257 feet Measured Depth (MD) to a total depth of 7,260 feet MD, a horizontal displacement of 2,003 feet. Preliminary log evaluation indicates a calculated net oil pay of 1,598 feet, with average porosity of 38% and average oil saturation of 90%. The logs indicate a continuous reservoir interval with a maximum pay thickness along the horizontal section of 120 feet true vertical thickness.

The interval 5,257 - 6,724 feet MD was completed with sand screens and an openhole gravel pack. The estimated completed net pay was 1,287 feet which was then tested using an Electric Submersible Pump (ESP).

The well was put on production and cleaned-up at increasing flowrates for a total of 23 hours. A multi-rate test was then carried out including stable rates of 3,000 bbl/d for 12 hours and 4,100 bbl/d for 11.5 hours. The maximum stabilised rate achieved was 4,550 bbl/d. Production rates were constrained by the surface testing facilities. The productivity index at the end of the main flow period was 10 bbl/d/psi. Total oil produced during the test was 6,000 bbls. The water cut at the end of the main flow period was zero.

The oil gravity was 15 API. Downhole and surface oil samples were collected for analysis.

On completion of operations, the well will be suspended for future use in the development of the Kraken field.

Nautical has a 50% interest in Block 9/2b and is the operator. The other participants are First Oil and Gas Limited (30%) and Canamens Energy North Sea Limited (20%).

FT sector watcher note:
A cracking result from NPE's Kraken field in the North Sea, with the latest appraisal well flowing at a peak rate of 4,500 b/d, close to double what the company thought would have been sufficient for commerciality. Two separate tests flowed at 3,000 b/d and 4,100 b/d for around 12 hours each, with the flow-rate constrained by surface testing facilities & the group believes that under normal conditions the well would be capable of producing 8,000 b/d.

. This is very good news for NPE and entirely validates its recent decision to increase its stake in the field from 35% to 50%. The project will now move on to development concept selection with sanction expected in Q3 next year. In our risked NAV of 634p/share we were carrying 286p/share for Kraken Phase I, risked at 80%. Hence de-risking this would move our TP above 700p/share vs a current price of 288p/share.

Note from Evo today:
The highly successful well test at Kraken is the final piece in derisking the development jigsaw for this large heavy oilfield in the UK North Sea. The project should move forward to sanction in 2012 with first oil in mid 2015. Derisking to 75% adds 100p to our RENAV and TP.

The key horizontal well test for Kraken has proved commercial flow rates from the reservoir, derisking the project which should now move forward to project sanction in 2012. The derisking adds 100p to our target price. The horizontal well test on the Kraken field has achieved a maximum stabilised flow rate of 4550 b/d using an electric submersible pump (ESP). Production rates were constrained by surface testing facilities. The well has been suspended for future use. The pre-drill minimum commercial rate was around 3000 b/d so a well capable of around 8000 b/d removes any doubt as to the commercial development potential of this substantial heavy oil field (83m bbls net to Nautical), which could be the largest North Sea development for some years.

. A phased development should see first oil in mid 2015. Having started the year with 110m of net cash, we estimate that post drilling and testing costs the company should have net cash of around 80m.
Nautical should be congratulated for operating the Kraken project since 2005 through exploration & appraisal and now has established commercial flow rates for this substantial heavy oil field. Derisking Kraken (Heimdal III reservoir only) from 50% to 75% adds over 100p to our RENAV. Our target price is increased to 600p (from 495p). Note that full derisking of Kraken, Greater Catcher and the rest of the Nautical portfolio has potential of over 1200p/share.

Notification of Results
Nautical Petroleum plc (AIM:NPE) is pleased to advise that its Results for the year ended 30 June 2011, will be announced on Monday 17 October 2011.

StockMarketWire.com
Nautical Petroleum reported profit after taxation for the year to end-June of £50.6m (2010: £2.3m loss), inclusive of gain on partial sale of Mariner of £55.1m.

The end-June 2011 net assets were £137.9m (2010: £57.7m).

The company had cash and deposits of �110m at period end (2010: �11.7m).

A share placing raised �30.3m (�28.9m net of expenses).

The Kraken 9/02b-4 appraisal well extended the oil accumulation to the south of the field, while the Kraken 9/02b-4z west exploration sidetrack encountered 2 oil bearing reservoirs.

Nautical sold 20.6667% of Mariner for �87.5m, retaining a 6% interest.

Nautical's equity interest in Block 9/2b Kraken increased from 35% to 50%.

An independent resource opinion confirmed Kraken Heimdal III resources of 160 mmbo (gross), 83 mmbo net to Nautical.

The Kraken 9/02b-5z horizontal appraisal well tested at 4,550 bopd

Steve Jenkins, CEO, commented: "The year ended 30th June 2011 and beyond has been an excellent period for Nautical. Against a challenging economic environment, Nautical has significantly strengthened its financial position and delivered outstanding operational results, the highlight of which has been the recent Kraken flow test. I would like to thank my fellow directors, employees and contractors for their continued dedication."

Commencement of Drilling Operations on Tudor Rose Well
Nautical Petroleum plc (AIM: NPE) announces that the Tudor Rose appraisal well 14/30a-5 in Central North Sea Block 14/30a was spudded at 14:22 hours on 16 November 2011.

The well is being drilled approximately 2.5km NNW of the 14/30a-2 discovery well. The main objectives of the appraisal well are to obtain a core of the Beauly sandstone reservoir and to collect reservoir fluid samples to establish the API and viscosity of the oil.

The well is being drilled using the Sedco 704 semi-submersible rig and is being managed by Applied Drilling Technology International (ADTI). The well is expected to take approximately 20 days, subject to weather and operational requirements.

Nautical has a 20 per cent. equity interest in Central North Sea block 14/30a.