Shares up on view Budget allowance worth £99m

Friday, Apr 24 2009 by
The Chancellor has announced the introduction of a New Field Allowance, which licence holders will be able to offset against Supplementary Corporation Tax ("SCT") (20 per cent), both on the UKCS and onshore. It will also ensure investment by independents, in addition to global energy players, in this key hydrocarbon producing region. Heavy oil related developments have been given a Field Allowance of GBP800 million by HMT as a specific target.

On the basis of these provisions applying to Nautical and its UKCS heavy oil interests the Directors believe that the New Field Allowance will enhance the value of the Company's 35% share of Kraken by GBP56 million and also Nautical's 26.67% share of Mariner by GBP43 million.

Commenting on these developments, Steve Jenkins, Chief Executive Officer ofNautical, said: "Nautical Petroleum is pleased by HMT's announcement of the new allowance. Itprovides a worthwhile incentive for Nautical and its partners to maintain theplanned programmes to achieve the Field Development Plan and oil production forthe two fields. It will improve the profitability of each of these developmentsand encourages Nautical to continue to explore and develop further opportunitiesin the UKCS."


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4 Posts on this Thread show/hide all

doverbeach 27th May '09 1 of 4

Shares up 7% today, presumably on the announcement by OHM here

The survey, on behalf of the Nautical Petroleum led group including Canamens Energy and Celtic Oil, is to assist in the appraisal of the Kraken Discovery in northern North Sea Block 9/2b.  ...  The appraisal survey will now map the lateral extent of the discovery and help distinguish between competing geological hypotheses, which in turn will guide further appraisal drilling. ...   the CSEM survey will be conducted by OHM's dedicated vessel OHM Leader in June 2009 with initial results expected in July 2009.

Possibly the most interesting bit being this

The survey follows-on from a successful pilot project undertaken by OHM on Kraken for the joint venture earlier this year. CSEM data acquired by OHM on the pilot project was integrated with the client's existing well and seismic data using OHM's advanced WISE workflows and determined that the resistive body associated with the discovery in well 9/2-1 extended significantly North and South of the well. [my bold]

So the price has recovered from last week's dip, which may have resulted from worries that Canamens would pull out after their exit from their Aurelian project discussed here




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oilretire 15th Jul '09 2 of 4

Hmmm, approx 17% up yesterday and another ~10%+ so far today despite Tristone cuts Nautical to underperform from market perform a few days back.

Any rumours? Or just a simple correction? Or just the power of the Fool?

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oilretire 15th Jul '09 3 of 4

Probably not related to the rise, but nice find by macca42 on ADVFN regarding the survey work on Kraken. The NPE related stuff starts just over half way down the page.......

As for OHM, its much needed good news was revealed in late May. The Aberdeen-headquartered firm had landed a modest contract with UK explorer Nautical Petroleum, which is keen to develop its Quadrant 9 Kraken heavy crude discovery but needs to build a better picture of the scale of this apparently promising find. This $1million contract marks the first full commercial use of its WISE (Well Integration with Seismic and Electromagnetics) technology that uses available seismic and well data to underpin CSEM survey design enabling CSEM technology to be successfully applied in technically challenging areas.

Kraken is located on North Sea block 9/2b and the just booked survey follows a successful pilot project undertaken for the licence partners earlier this year.

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emptyend 16th Jul '09 4 of 4

In reply to oilretire (post #2)

Any rumours? Or just a simple correction? Or just the power of the Fool?


When was the last time there was movement resulting from ANY article there? Especially written by someone new who no-one's heard of - and when accompanied by a clutch of sceptical comments.

That said, there is a case for thinking that Nautical have an interesting position and focus within the North Sea.....and with M&A interest warming up generally within that space, it isn't a big stretch to think that Nautical might be a target for someone, given that recent selling took them to new lows of under 2.5p in old money (pre the 1 for 20 consolidation) I guess anyone who has seen a 35% profit on a 6-week short position might have been keen to cover?


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