Nautical Petroleum reports that Nautical Petroleum AG, a wholly owned subsidiary of Nautical, has reached an agreement with Egdon Resources plc to acquire 15% interests in onshore UK Petroleum Exploration and Development Licences PEDL118 and PEDL203 located in Nottinghamshire.

The consideration comprises a cash sum payable on completion of £200,000 and the payment of £150,000 towards Egdon's costs of the next well to be drilled on either PEDL118 or PEDL203.

PEDL203 contains the Kirklington-3z producing well which was drilled in 2010 and produced at rates of 15-20 bopd. The Kirklington oil field has all consents and approvals in place for production but is currently shut-in awaiting the development of Dukes Wood-1.

The contiguous licence PEDL118 contains the abandoned Eakring-Dukes Wood oil field where the Dukes Wood-1 well was drilled and tested in 2010, with the Ashover Grit "AG4" reservoir interval producing at rates of around 20 bopd. It is intended to dual-complete the Dukes Wood-1 well for production from the AG4 reservoir and for water disposal in the Sub Alton Crawshaw interval. The development has received planning consent and is awaiting environmental and other approvals before being brought into production in conjunction with Kirklington in the first quarter of 2012.

The operator has also identified a number of independent targets on the Eakring/Dukes Wood structure including previously undrilled highs such as Eakring North where additional wells may be drilled at some future point.

Tags: Nautical Petroleum plc