Licensing Option 10/1
(Nautical 40%)

Nautical acquired a 40% equity stake in Licencing Option 10/1 in April 2010.  Licensing Option 10/1, operated by Providence Resources Plc and located in the North Celtic Sea Basin, contains the Baltimore heavy oil discovery which is estimated to have in place potential of up to 300mmbo.  The discovery well (48/19-2) was drilled in 1992 on a Lower Cretaceous structure with an areal extent of c.12 square kilometres. The well encountered a c. 90m gross hydrocarbon bearing section at c. 900m TVDSS in sands of Lower Cretaceous age which are similar to those producing at the nearby Kinsale Head field. Oil recovered during testing was a heavy crude (c. 11° API) while  reservoir cores indicated excellent reservoir quality  with permeabilities of greater than 3,000mD.

Nautical will perform and fund a development feasibility review to assess the commercial viability of the discovery.