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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Hardman & Co. Research note

Yes thanks PP - just had a look at that, and wouldn't have known where to find such info.

Good post PP.

That note is what every little punter needed to explain what they have done.

Looking ready for a tick higher and perhaps a news update before too long.

Good read pg 28 FT today about Xcite/heavy oil.

Nautical Petroleum PLC
16 November 2007



Immediate Release. 16 November 2007


Nautical Petroleum plc

('Nautical' or 'the Company')

Nautical Announces Successful Kraken Appraisal Well in North Sea Block 9/2b


Nautical Petroleum (AIM:NPE), the developer of heavy oil interests in the UK and
Europe, is pleased to announce the results of the 9/2b- 2 Kraken appraisal well
drilled by Nautical and its partners.

The well 9/2b- 2 was drilled to a depth of 4378 ft subsea, 2.7 kilometres north
of the 9/2- 1 Kraken discovery well and encountered oil-bearing Palaeocene
Heimdal sands at a higher elevation than in the discovery well. A full
evaluation of the hydrocarbon bearing intervals in 9/2b-2 has been carried out
and reservoir fluid samples obtained for analysis in the near future. Pressure
measurements indicate that the 9/2b- 2 reservoir sands are likely to be in
communication with the Heimdal oil reservoir in 9/2- 1.

9/2b- 2 encountered oil down to (ODT) 168 feet deeper (4008 ft subsea) than in
the 9/2- 1 well, giving a hydrocarbon column of at least 252 feet. This confirms
a substantial accumulation, since the ODT in 9/2b- 2 is 71ft lower than the
predicted maximum oil - water contact in the pre - drill reserves estimations.

Initial analysis of the samples and the downhole pressure gradients indicate
that the 9/2b- 2 oil is lighter (18.4degreesAPI) than estimated from a poor
quality sample in the 9/2- 1 discovery well, and substantially lighter than the
nearby discoveries such as Bressay.

Reservoir quality is excellent with high porosity and permeability over 79 feet
of net pay. Oil shows were also encountered in Cretaceous Conglomerates towards
the base of the well. The data from the well will be integrated with the
reprocessed 3D seismic and the newly acquired high resolution, high density 2D
seismic (in the north west of the block) to determine the revised hydrocarbons
in place, and to locate the next appraisal well.

The interests held in Block 9/2b are Nautical Petroleum plc 45%, Celtic Oil
Limited (wholly owned by SK Energy) 30% and Canamens Energy North Sea Limited
25%. This is Nautical's first operated well.

On completion of the well, the rig will move to spud an exploration well on the
Mermaid Prospect in Block 9/11c.


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

'I am extremely pleased with our first operated well as this is a very positive
result for such an aggressive appraisal well. The results confirm Kraken to be a
substantial oil accumulation and in place resources are likely to be ahead of
expectations. Encouragingly, the excellent quality Heimdal reservoirs appear to
be in communication between the two wells, confirming sand distribution over a
large area.'

To summarise; We're off!

Yep

Thanks for your Summary S...r! Great news

Nice serious buying going on :)

Typically not at my desk today, what has been the highest percentage gain on the day? Looks like we're off and running now.

Hi Greyhound: I think the highest price was 15.25-15.50 but I could be wrong (have had some breakfast in the meantime). Looks like we're up against the 16p resistance that's been there since mid-2005 (does that make sense? - I'm not as experienced as you guys).

Sounds good, thanks Toya. Will have a thorough read of update later.

KBC comment this morning on the news :

Nautical Petroleum (NPE) Successful Kraken appraisal well EST: Up , REC: CORPORATE

The appraisal well on Kraken announced by Nautical Petroleum this morning suggests that the potential reserves in the field are towards the higher end of the range. The well found a gross oil column of over 250 feet with oil in high quality Paleocene reservoir. Equally importantly the oil found in this well is lighter than anticipated at 18 degree API. This is a very satisfactory result for Nautical. Based on the results to date, we are increasing our estimate of recoverable reserves in Karken to 100 mmbbl (from 53) and reducing the risk factor from 50% to 70% (probability of commercial success). The net impact is a 6.3p/share increase in Core NAV from 15p/share to 21.6p/share, but there remains further upside in this field.

Nautical will shortly be mobilising the rig to start drilling the Mermaid exploration well. Mermaid is a potential 112 mmbbl prospect in which NPE has a 50% interest and will have the initial well costs fully carried by its partners. We are scarrying a risked exploration value of 3.4p/share on this prospect over and above the Core NAV. Given its proximity to Mariner, a discovery at Mermaid could enhance the economics of that field via joint development of a larger resource.

Thanks PP. That's almost double the original estimate then, for Karken.

Cool! it's all coming on nicely.....onwards and upwards! might top up on any sp weakness in the coming weeks while waiting for more news.

Yep, CORE NAV now of 21.6p a share :)

Roll on Mermaid.

well, few days ago i was thinking to buy few of this, but i didn't have any spare cash, i hope Indago Petroleum will show the same moves soon..

New Hardman & Co Note

I am very happy with that!

Thanks seawall, good to see that update today as well. Reads very well and hopefully we'll be seeing a few articles over the weekend and further northward moves next week.

Meant to say the note came via steelwatch on ADVFN, always try to remember who did the initial detective work.