Nautical Petroleum provides an update on Licensing Option 10/01 in the North Celtic Sea Basin, offshore Ireland, which contains the Baltimore heavy oil discovery in which Nautical has a 40% interest. Providence Resources (Providence) own the remaining 60% interest and operate the Option.

As part of the development feasibility review being undertaken by Nautical under the terms of its farm-in, the Option and surrounding area were mapped using available seismic data. This has revealed the new Marlin exploration prospect which is located c. 10 km North-West of the producing Kinsale Head gas field. Geological modeling of the Marlin prospect indicates that it is likely to be gas charged with a total resource of up to 74bcf. This structure, which is the same age as the primary producing reservoirs in the Kinsale Head gas field, has been mapped to extend beyond the current Option area.

Accordingly, the Baltimore partners applied to the Minister for Communications, Energy and Natural Resources to increase the area covered by the Option by 16km2 to include the mapped extension of the Cretaceous Marlin prospect into open acreage. Nautical is pleased to confirm that this extension has now been awarded.

Steve Jenkins, Nautical's Chief Executive Officer, commented, "We are pleased to be working with Providence on this opportunity. This is an encouraging first step in the region and we look forward to completing the development feasibility review."

Commenting, John O'Sullivan, Technical Director of Providence said, "We are excited about this new exploration prospect as it is in the same geological setting as other proven producing fields in the region and it is very close to the Kinsale Head production facilities. In particular, the Marlin prospect demonstrates striking similarities to the nearby Ballycotton gas field, which is a highly successful offshore development."

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