Nautical Petroleum PLC (LON:NPE) said it has signed an agreement to acquire a further 15 percent interest in the UKCS Licence P1077 Block 9/2b, which includes the Kraken discovery, from Canamens Energy North Sea Ltd.
As payment, Nautical has agreed to fund Canamens' share of the remaining costs relating to the upcoming 9/02b-E appraisal well and a 3D seismic survey.
It has also agreed to waive £7 million of past costs owed by Canamens for the drilling of the 9/02b-4 well and 9/02b-4z sidetrack. Canamens other financial obligations to Nautical relating to the 9/02b-4 well and 9/02b-4z sidetrack remain.
Nautical will have a 50 percent interest in the licence upon completion of the acquisition, and Canamens' interest will reduce to 20 percent.
Chief executive officer Steve Jenkins said: “This is a very satisfactory conclusion to this outstanding issue. We can now progress our work on Kraken with certainty over its funding arrangements and have increased Nautical's interest on terms that we believe are beneficial to our shareholders."