Keddington

Nautical Petroleum through its wholly owned subsidiary Alba Resources Limited, acquired a 10% interest in Onshore Licence PEDL005 (Remainder) which contains the producing Keddington oil field and North Somercotes gas prospect, both adjacent to the Saltfleetby gas field.

Drilling operations on the Keddington-3 and 3z wells were completed on 24 April 2010. The Keddington-3z horizontal well encountered a total of 235 metres of sandstones, including 226 metres in the main Unit 1 reservoir interval.

The well was completed with a slotted liner on 4 June 2010 following delays caused by the need to repair leaking production tubing.  Pumped production of the well began on 7 June 2010.  As significant flowing pressures were observed, the pump was stopped and the well was allowed to flow naturally.  The well has been free-flowing oil and gas since and producing at an average rate of 265 barrels of oil per day.

The well is also producing significant quantities of gas with the average daily rate being over 500,000 cubic feet of gas per day. The productivity of the well is better than expected while the provenance of the gas and the opportunities it represents are under study by Egdon.