Nautical Petroleum has signed an agreement to acquire a further 15% interest in the UKCS Licence P1077 Block 9/2b (the 'Licence'), which includes the Kraken discovery, from Canamens Energy North Sea Limited (Canamens). Subject to Government approval and third party consents, Nautical will have a 50% interest in the Licence upon completion of the acquisition. Following the acquisition Canamens' interest will reduce to 20%.

In consideration for the acquisition Nautical has agreed to fund Canamens' share of the remaining costs relating to the upcoming 9/02b-E appraisal well and a 3D seismic survey. Nautical has also agreed to waive £7 million of past costs owed by Canamens for the drilling of the 9/02b-4 well and 9/02b-4z sidetrack. Canamens other financial obligations to Nautical relating to the 9/02b-4 well and 9/02b-4z sidetrack remain.

Steve Jenkins, Nautical's Chief Executive Officer, commented,'This is a very satisfactory conclusion to this outstanding issue. We can now progress our work on Kraken with certainty over its funding arrangements and have increased Nautical's interest on terms that we believe are beneficial to our shareholders.'

Tags: Nautical Petroleum plc