2010-09-29-2010-09-29

To farm-in up to 65% interest in license containing the Nemo heavy oil discovery offshore Ireland in the North Celtic Sea Basin, gaining interest in 230 MMBO potential resources.

Nautical Petroleum Plc, London, (London Aim: NPE) plans to buy up to a 65% interest in the Standard Exploration License 2/07 containing the Nemo heavy oil discovery offshore Ireland from Providence Resources Plc, Dublin, (London Aim: PVR, Irish: ERM) and its partners for an undisclosed price.

Nemo is situated approximately 60 kilometers offshore Ireland in the North Celtic Sea Basin. The discovery has resource potential of up to 230 million barrels of oil.

Nautical will earn the initial 25% stake in the discovery by funding and carrying out a work program on the development feasibility of the Nemo discovery. It has the option to increase its stake by 40% and assume operatorship should it drill an appraisal well by the end of 2011. Nautical will fund 100% of the cost of the well.

Providence is operator and currently holds a 72.5% interest in the license, Atlantic Petroleum P/F holds 18.3% and Sosina Exploration Ltd. holds 9.2%.

Nautical chief executive Steve Jenkins says, "We continue to build a material portfolio in Ireland in an area which demonstrates considerable exploration and appraisal potential. With Nemo we have an opportunity to use our expertise in heavy oil to potentially exploit the resource upside of this discovery."

Providence CEO Tony O'Reilly says, "We are very pleased to be collaborating with a company like Nautical that has significant heavy oil expertise that will help unlock the potential of the Nemo discovery and other heavy oil discoveries in the Celtic Sea."