OIL and gas explorer Nautical Petroleum said yesterday that 2012 would be transformational for the company as it moved to help develop three North Sea fields.
It also said 2013 would see it move focus to France and the Mediterranean as it looked to diversify and grow.
Announcing full-year results to the end of June, Nautical said it had already transformed from a small-cap to mid-cap exploration company in the past year.
Next year will be involved in developing its 50%-owned Kraken discovery, as operator, plus the significant Catcher and Mariner fields, in which it holds 15% and 6% interest respectively.
Nautical chief executive Steve Jenkins said all three were expected to have development plans agreed by the UK Government next year, taking the firm a step closer to also being a fully-fledged production company.
Finance director Will Mathers said Nautical was in a strong position to carry out the work. He said: “Next year is going to be extremely busy. It is a completely different scale of operation than what we have previously had and fortunately we are very well positioned for that with a strong technical team and balance sheet.”
However, he said that by 2013 the firm’s focus would shift to France, adding: “There are some interesting blocks in the Mediterranean we are looking at.
“We want to diversify our portfolio, but we are sticking with Europe and we are going to continue with our focus on heavy oil, which we believe we are good at.”
Announcing the firm’s full-year results chairman Patrick Kennedy said Nautical now had the cash to fund planned exploration and appraisal activities through next year and beyond in addition to taking its key assets to development.
Nautical said it recorded profits of £50.6million compared with losses of £2.3million last year, thanks to a £55million profit made on the sale of 20% of its 26% stake in Mariner to Statoil (UK) for £87.5million.
It had also raised £29million through a share placing late last year.
Mr Mathers said the firm was very excited about its east-of-Shetland Kraken prospect, said to have 160million barrels of recoverable reserves. Flow tests carried out last month indicated the field could flow at more than 8,000 barrels per day.
Mr Jenkins said: “Kraken is now one of the most significant, soon-to-be developed accumulations in the UK continental shelf.”
North-east businessman Ian Suttie could become Scotland’s richest person through its development. His company, First Oil and Gas, has a 30% stake in the field.
Nautical said development work would not detract it from exploration, however. It has plans for a well on its 100%-owned 9/1a prospect west of Kraken in addition to being involved in drilling further prospects in the Catcher area, including drilling the Carnaby prospect.
The London-based company hopes to drill the Merrow gas prospect in the east Irish Sea basin, in which is has 50% interest and is operator.
It will also be involved in wells on the Tudor Rose and Spaniards prospects, in which it has 20% and 21% equity respectively.
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