Under the terms of the agreement, Canamens will fund its ongoing 30% interest of the current well, plus a portion of Nautical’s costs. The terms provide for a $20 million cap on the Selkie well expenses against a current estimate of $16 million.
Following the completion of the farm out, Nautical will retain a 30% interest and Celtic Oil will retain a 40% interest. On completion of the well, and subject to partner and Department for Business, Enterprise and Regulatory Reform (BERR) approval, Canamens will take on operator responsibility for Block 8/25a.
Steve Jenkins, CEO of Nautical, said: The farm out on block 8/25a is excellent news for Nautical shareholders, as this mitigates ongoing risk in the portfolio and maintains our cash balances.
The discussions with Canamens endorse the quality of our assets, confirm the continuing support for Nautical’s strategy on the UK continental shelf, and will align our interests in a number of key exploration blocks.
