Block 9/1a Ketos (Licence P1759)
(Nautical 100% Operator)

Block 9/1a is immediately to the west of the Kraken block 9/2b. It was acquired by Nautical with a 100% interest in the 26th Seaward Licencing Round. Ketos contains oil in the Heimdal I reservoir and is stratigraphically separate from the Heimdal III Kraken field. The Ketos discovery well 9/02b-2 encountered 38 feet of net oil bearing sand in the Heimdal I reservoir. Existing 2D seismic over Block 9/1a shows amplitudes similar to those seen in the 3D data over Block 9/2b. This indicates that Heimdal I reservoir extends into Block 9/1a and thus Ketos could be a substantial accumulation. New 3D seismic was acquired over the block as part of the Kraken area survey undertaken during Q3 2011, which is currently being processed and interpreted to further define Ketos. .

As part of the Block 9/2b & 9/2c Kraken sale agreement announced on 24 January 2012 EnQuest plc has the option to earn up to 45% farm-in interest in Block 9/1a, in return for paying up to 90% of the gross cost of drilling up to two wells to the appraise the discovery.  Liability to carry Nautical's costs for the first well is capped at 45% of $15 million gross well cost.  For the second well, which is contingent on the success of the first well, the carry is capped at 45% of $20 million gross well cost.