(NPE) Nautical Petroleum

Financial highlights

Cornerstone assets

Mariner

Kraken

Commenting on the results Steve Jenkins, Chief Executive Officer of Nautical said:

"Against the backdrop of a turbulent year, Nautical has made significant progress on its portfolio and maintained a strong financial position"

"Three seismic surveys were performed on Mariner during the year, including a production platform site survey. Mariner's best estimate gross contingent resources now stand at 369mmbo. This combined with the strong commitment of the operator, Statoil, gives us great confidence as we move closer towards a development decision".

"CSEM surveys performed on Kraken during the year have significantly enhanced our understanding of the reservoir. We look forward to drilling an appraisal well in 2010 as a precursor for the target of a FDP submission by end 2010."

"We look forward to an increasingly active year ahead."

For further information please contact:

Nautical Petroleum plc 020 7550 4890

Steve Jenkins, Chief Executive OfficerPaul Jennings, Commercial DirectorWill Mathers, Finance Director
Buchanan Communications 020 7466 5000

Ben RomneyBen Willey
Evolution Securities * Nominated Advisor & Joint Broker 020 7071 4300

Rob CollinsNeil ElliotAdam James
Ambrian Partners Limited * Joint Broker 020 7634 4700

Richard Swindells

Chairman's Statement

Nautical Petroleum is pleased to report to Shareholders a further year of significant progress in the development of its asset portfolio.

This progress has however been tempered by a period driven primarily by the dramatic collapse in oil prices seen in the second half of 2008 and the onset of global recession. Our market capitalisation bottomed out at a value equivalent to our cash in hand, where it remained for some six months. Plainly at oil prices of around US$40 per barrel, the market assigned no value to our portfolio of discovered hydrocarbons or our diverse exploration portfolio. Stimulated by the welcome fiscal boost from the Chancellor's April 2009 budget announcement of the new Field Allowance's for heavy oil fields, and subsequently by a recovery in oil price to levels above US$70, the share price has stabilised to its current level.

While short term oil prices trends can be very uncertain there is reasonable consensus that over the medium to long-term timeframe, prices will not drop below US$70 per barrel for a sustained period, while the probability of further growth remains. Importantly for our future heavy oil production streams, the narrowing of the discount related to heavy oil is also a broadly accepted trend.

With this commodity pricing backdrop, the potential value of Nautical's interests in the successful development of Mariner and Kraken is still very heavily discounted but we are confident that increasing value will be attached to these assets once the respective Joint Venture's move these field developments into the execution phase. This therefore remains our top priority and key to this is the role of Statoil on Mariner.

Mariner

Statoil's strong commitment to the Mariner project, highlighted recently in the media and during the recent visit of its' CEO to the UK, is greatly encouraging. Moreover their experience of developing heavy oil fields becomes increasingly visible in the diverse range of technical studies initiated by them to identify the optimal shape of a Mariner development.

As an example, Statoil has applied geophysical techniques proven in their successful Grane heavy oil field by acquiring two further seismic surveys during the period. These mark the first major operational activities on Mariner since the extended well test in 1997. Both surveys have significantly improved our understanding of the Maureen and Heimdal reservoirs and we anticipate the improved imaging will be reflected in updated reservoir forecasting models early in 2010. All the signs are that the Mariner development is economically robust and moving inexorably forward to project sanction and FDP submission in 2011 with first oil in 2015.

One consequence of the projected first oil date of 2015 is the decision to reclassify the Maureen hydrocarbons from reserves to contingent resources in line with industry best practice on resource definition. Based on updated estimates from the Operator Statoil, combined gross best estimate contingent resources for the Maureen and Heimdal reservoirs are now 369mmbo gross (90mmbo net). This compares to 274mmbo (67mmbo net) carried in 2008.

Kraken

Nautical operates the Kraken discovery with a 35% equity share, and therefore dictates the pace of development. It is also important to note that the oil viscosity in Kraken is within the range of the Captain Field which currently produces at around 25,000bopd and is targeting a recovery factor of over 50%.

While buoyed by the tremendous results of 9/2b-2, the failure of a third well (9/2b-3 drilled in September/October 2008), albeit aggressively located to the northeast of the original discovery wells to chase an upside resources scenario, needed to be fully understood.

As a result, a CSEM survey was commissioned to further define the extent of the reservoir. Enhanced seismic processing and regional studies are also in progress. In combination with the CSEM results, this study programme is focussed on the identification of the target for a further appraisal well to be drilled in the first half of 2010.

As a result of the dry well 9/2b-3, the gross contingent resource estimate for Kraken has been reduced from 106mmbo (37mmbo net) to the 83mmbo (29mmbo net) contained in a core area to the north and south of the two successful wells. Encouragingly, the new seismic data has identified significant exploration potential to the west of the core area.

Development concept studies have meanwhile continued, with the Joint Venture favouring a phased development solution. It is anticipated that the results of the upcoming well can be quickly incorporated into our assessment, and hence we believe that it remains realistic to target project sanction and FDP submission by the end of 2010.

Rest of the Portfolio

Whilst Kraken and Mariner have been our key areas of focus, we continued to strengthen our position on the East Shetland Platform by adding a further six blocks to the portfolio in the 25th Licensing Round. We were also pleased to further consolidate our position in France with the award of two further licences.

Financial Positioning

Since the inception of Nautical in 2005, £38 million has been raised of which £19.1 million remained at year end. Nautical remains debt free and our £7.5 million secured debt facility remains undrawn and fully available. The impact of the global financial crisis on the cash positions of small and mid cap E&P companies in particular, suggests that our creative farm-out deals of the recent past may be more challenging to replicate in the immediate future. Nevertheless, we are confident that we have sufficient financial resources to meet the immediate needs of the business as we progress Kraken and Mariner towards development decisions.

Looking further ahead, we continue to position the Group to obtain the necessary financing to implement our heavy oil development strategy through the most effective combination of debt, equity funding and other means. In that regard, the fact that a number of capital raisings have recently being achieved in the E&P sector at moderate discounts, is evidence of emerging confidence in the sector. In parallel, we continue to receive encouraging signals from advisers and the principal lending institutions of fertile ground for project financing particularly for those heavy oil projects put under the spotlight by HM Government's fiscal encouragement.

Capability

We continued with our model of outsourcing evaluation work during the period, enabling us to keep our administration expenses to a minimum, whilst maintaining access to a highly capable group of technical experts. That this works so effectively, is a tribute to the cohesion and versatility of the core executive team. In particular, the commercial creativity of the team is widely acknowledged and will serve Nautical well in our efforts to capitalise on our portfolio of opportunities. However, looking forward to a sharpened focus on field development definition in Mariner and Kraken and the consequential major investment decisions, it is our intention to complement the core in-house team with a full-time Engineering Manager.

I would like to take this opportunity to thank Ian Williams who led Nautical energetically as chairman through its formative years until his departure at the end of 2008. The Board would also wish to express our appreciation for the supportive leadership of Patrick Kennedy who took on the role of acting Chairman during the first half of 2009.

Moving Forward in 2010

The past 12 months has been turbulent for E&P companies, and whilst the overall economy remains fragile there are signs of confidence returning to the sector. Importantly for Nautical, there is some evidence albeit mixed as yet, of a lower cost environment emerging and having successfully preserved our financial resources during this period of instability, we are now better positioned to take advantage of this.

Our planned activity for next year anticipates a further appraisal well on Kraken as we push towards the goal of project sanction and Field Development Plan (FDP) submission by the end of 2010. In parallel we expect Statoil to continue to progress towards concept selection on Mariner and award of the contract for front end engineering and design (FEED) studies. Whilst our key focus will remain on Kraken and Mariner, we will continue to progress our exploration portfolio, with the first material activity scheduled to be the drilling of the Catcher prospect in Q2, 2010.

John Conlin

Chairman

Chief Executive's Review

Nautical is pleased to report that against the backdrop of difficult economic conditions during the period significant progress has been made.

Steady Progress In Challenging Times

During the period Nautical focused on the technical development and appraisal of our cornerstone assets by drilling a well and acquiring both test and controlled source electro magnetic (CSEM) surveys over Kraken and participating in three seismic surveys over Mariner.

Exploration activity was somewhat muted, restricted to an operated seismic survey over blocks 8/5 and 9/1. During the autumn a planned well on the Hydra block encountered an extensive period of severe weather conditions which prevented the well spudding and resulted in the demobilisation of the rig. The period also saw a drop of over US$100 per barrel in the Brent spot price before recovering to a more comfortable US$70 per barrel, well above the break even price for both the Company's main projects.

Costs have not fallen in line with the oil price, especially on semi submersible day rates which remain around US$250,000 per day. Fortunately large jack up rigs rates have fallen to around US$150,000 per day and can be utilised on most of Nautical's blocks. It has become apparent that rig stacking is occurring as service companies seek to maintain day rates and insulate their exposure to the cost decreases seen elsewhere in the industry. Whilst unhelpful, Nautical believes competition will remedy this situation and we hope to see rig rates following the downward trends of other services.

A Good Result From the Chancellor

Nautical's share price tracked the fall in global equity markets, with the AIM market particularly impacted by the economic and financial crisis which gripped the industry in the period. However the Company received a welcome uplift in the April 2009 budget, with the introduction of the new Field Allowance in which licence holders will be able to offset against the Supplementary Charge (20%). Heavy oil related developments have been given a Field Allowance of £800 million as a specific target. This will enhance the value of all Nautical's heavy oil portfolio and specifically improve the profitability of the Kraken and Mariner developments. Nautical has been engaged with government since its inception to secure this positive fiscal change, as both an individual company and through the Chairmanship of the Oil and Gas Independents Association (the main voice of UKCS independents). The company is pleased with this outcome and will continue to try to secure further incentives for both exploration and development activity.

Managing Our Portfolio Through Growth and Judicious Pruning

Nautical is committed to progressing both Mariner and Kraken to FDP submission and adding value to the third leg of material appraisal and exploration opportunities which has benefited from the addition of a producing asset (Keddington). Including the awards in the 25th Licensing Round, blocks secured post round and two further awards in France, the augmented portfolio now consists of 25 blocks (18 licences) of which 11 blocks (8 licences) are operated by Nautical. However through active portfolio management this will be reduced through relinquishments of blocks with diminished prospectivity, thus enabling resources to be directed towards the most promising blocks.

Mariner - Less Risk and Increasingly Robust

Statoil (UK) Ltd (operator) continues to share Nautical's enthusiasm and commitment to bring Mariner to development. Activity levels remained high with the acquisition of three seismic surveys namely, high resolution 3D seismic, OBC seismic and a platform site survey. The combination of the 3D and OBC (a technique proven on the Grane heavy oil field - Norway) was successful in imaging and defining the areal distribution of the Heimdal Sandstone reservoir and defining the Top Maureen Sand reservoir (increasing the hydrocarbon column). Additionally areas of Maureen Sand erosion proved to be more limited than on previous mapping. These increased volumes have not been included in the quoted resources since modified reservoir simulations have yet to be run. Furthermore studies through the period which have revealed reduced platform drilling costs, increased recovery rates, decreased water cut (using autonomous valves) will also be incorporated in the simulation and we aim to report the anticipated increase in resources during 2010.

The joint venture intends to pass through a major decision gate at the end of 2010 before submitting an FDP in 2011, followed by first oil in 2015.

Kraken - An Operated Substantial Accumulation

A third well was drilled on the north east flank of the Kraken hydrocarbon accumulation, 3.3km ENE of the successful 9/2b-2 well and 5km from the 9/2-1A discovery well. The well was designed to intersect the oil water contact and investigate the upside (P10) resources. The reservoir (Heimdal Sandstone) proved to be absent. However, there are still substantial best estimate contingent resources (83mmbo gross, 29mmbo net) both around the successful wells and to the north and south. Exploration upside is evident to the west with best estimate prospective resources of 114mmbo gross (40mmbo net).

Considerable technical efforts are focused on predicting the areal distribution of the reservoir over Kraken. Both sedimentological and seismic studies will be integrated with CSEM survey results to locate an appraisal well to be drilled in 2010 prior to submitting an FDP before end 2010. We are strengthening our management team to fulfil our ambition for first oil in 2012.

Again Nautical was successful in mitigating risk and reducing its financial exposure by farming out the 9/2b-3 appraisal to both Canamens Energy and Celtic Oil Limited, resulting in a zero cost participation in the well and an additional cash bonus to be received on FDP approval.

Exploration and Appraisal Opportunities - Expansion in the UKCS and France

Nautical continues to be a significant operator and an active joint venture partner, although operational activity was below 2008 levels with a seismic survey acquired over the Scylla channel (blocks 8/5 and 9/1) and the aborted spud of the Hydra well in block 3/27a. The Scylla prospect proved to be too high risk and small, consequently both blocks and the Hydra block will be allowed to lapse or be relinquished. On a more positive note the new operator of Catcher (Blocks 28/9 and 28/10b) will drill a well in the first half of 2010 (postponed due to Oilexco entering administration).

Further interpretation of recently reprocessed seismic has confirmed the large Merrow prospect at Collyhurst (Permian) level and identified further leads. The joint venture is currently identifying onshore drilling locations.

Nautical strengthened its position on the East Shetland Platform with the award of six blocks (four as operator) and securing the merger of the previously relinquished portion of 9/2b with the retained area. In the Moray Firth two additional blocks were secured post round to add to the award of Block 15/21g (containing the exciting 'Spaniards' prospect, downdip from tested oil).

At the end of 2008 Nautical purchased its first production (10% of the Keddington field) from Egdon Resources. We see considerable upside in this field and aim to drill a sidetrack in late 2009 to boost production.

Our position in France has also been strengthened by two further awards, Pontenx and Gex. Both permits offer heavy oil appraisal / development opportunities with added conventional oil upside in Pontenx and potentially large oil / gas traps in the Jura basin (Gex). These complement the existing development opportunity in St Laurent (Grenade-sur-Adour) and the large gas prospect beneath the Audignon Ridge.

We have made strong applications for heavy oil exploration blocks in Europe and are negotiating on a potential heavy oil field reactivation. Being mindful of overstretching our treasury we will concentrate on evaluating discovered oil blocks in the upcoming UKCS 26th Licensing Round.

Oil Portfolio Audit

RPS Energy audited our oil portfolio held at 30 June 2009. Resources quoted in this report refer to the figures verified by this audit. All contingent resources and prospective resources are best estimates.

Firm Heavy Oil Demand Coupled with a Stable Price

Nautical agrees with the consensus that the oil price will remain stable and will rise as the world emerges more fully from recession and demand rises. We see this price upswing being mirrored or being more acute for naphthenic crude as world sources are few and distant and the UKCS heavy oil production is in rapid decline. The fall in development costs and the recently announced tax incentives, combined with this price scenario make our development projects increasingly robust and attractive.

A More Active Future

We look forward to an increased level of operational activity in the coming year as we progress Mariner and Kraken further towards development decisions, as well as seek further resources from our exploration portfolio through successful drilling. Your board will make every effort to gain equity markets appreciation of our potential, resulting in a share price that fully reflects the Company's substantial net resources.

Steve Jenkins

Chief Executive Officer

Operational review

Our portfolio

Kraken: Block 9/2b

(Licence P1077 - 35% interest)

oil is of a higher API with less viscosity then predicted.

Mariner: Block 9/11a

(Licence P335 - 26.67% interest)

from the Maureen Formation sands and has flowed up to 1,800bopd from the shallower Heimdal reservoir.

Maureen reservoirs.

Hydra: Block 3/27a

(Licence P1203 - 35% interest)

Scylla: Blocks 8/5 and 9/1

(Licence P1277 - 100% interest)

Tudor Rose: Block 14/30a

(Licence P1463 - 20% interest)

offset (AVO) volume is ongoing.

Catcher: Blocks 28/9 and 28/10b

(Licence P1430 - 15% interest)

Merrow: Blocks 113/29c and 113/30

(Licence P1475 - 50% interest)

Mermaid: Block 9/11c

(Licence P979 - 80% interest)

9/11c.

Blocks 8/25a and 8/25b

(Licence P976 - 50% interest)

Blocks 3/22 and 3/26

(Licences P1573 and P1574 - 40% interest)

Scylla South: Blocks 9/6 and 9/7

(Licences P1575 - 35% interest)

Spaniards: Block 15/21g

(Licences P1655 - 30% interest)

Blocks 15/7 and 15/12a

(Licences P1652 - 33% interest)

Keddington

(Licence PEDL005, 10% interest)

St Laurent: France

(22% interest)

prior to drilling a well.

Pontenx: France

(20% interest)

prospects.

Gex: France

(20% interest)

Finance Director's Review

In challenging times Nautical has successfully maintained a strong cash position and remained debt free whilst continuing to progress our exploration and pre-development activity.

Results

The Group made a loss after taxation of £5.9m for the year (2008:£4.5m). This included exploration and evaluation expenses of £4.5m, a £2.4m charge relating to the extended well test equipment and administration expenses of £1.6m, offset by £0.5m in net foreign exchange gains, finance income of £1.3m and a net taxation credit of £0.7m.

Exploration and evaluation expenses were primarily related to unsuccessful exploration costs on 3/27a Hydra and 8/5 & 9/1 Scylla.

A concerted effort had been undertaken to utilise the extended well test equipment over the past two years, however this has not been successful. As a consequence, the decision was made in December 2008 to impair the asset, resulting in a £2.4m non-cash charge to the income statement.

Administration costs of £1.6m (2008: £1.5m) continued to be managed tightly and included a non-cash charge of £0.2m (2008: £0.4m) relating to share option charges.

Farmouts were completed on 9/2b Kraken, 3/27a Hydra and 8/25 Selkie during the year with receipts in excess of the carrying value of assets disposed on, resulting in a net gain of £0.5m. The completion of the farmout of 9/2b Kraken resulted in a partial write back of the provision for deferred taxation, resulting in a net deferred tax credit of £1.1m, which was offset by a deferred tax charge of £0.4m.

Balance Sheet

As at 30 June 2009, the group has net assets of £59.8m (2008: £65.5m), dominated by capitalised exploration and evaluation assets of £48.9m (2008: £56.4 m) and cash and deposits of £19.1m (2008: £20.1m). The Group continues to be debt free.

Cash Flow

Our cash management continued to be very strong during the year, with £19.1m cash and deposits at year end. £11.9m of cash and past cost contribution was received during the year from farmouts, sufficient to fund the £11.5m that was spent during the year on the continued exploration and evaluation of our assets.

Our £7.5m secured debt facility with the Bank of Scotland, was extended during the year to May 2012 and remains undrawn and available for working capital purposes.

Against a background of low interest rates, interest received on cash and deposits was £0.8m (2008: £1.0m), equivalent to half of our overall administration spend.

At year end our cash and deposits were primarily deposited with the Bank of Scotland, however subsequent to year end funds have also been placed with Abbey, Scottish Widows and Anglo Irish Bank.

New Field Allowances

Nautical welcomed the Chancellor's 2009 Budget announcement of the introduction of new Field Allowance's applying to small fields, heavy oil fields and high temperature/high pressure fields.

Under the existing North Sea Fiscal Regime, a conventional UKCS oil field is subject to taxation of 30%, plus a Supplementary Charge of 20%, equating to a 50% charge on taxable income. As a consequence of the new Field Allowances announced, heavy oil fields have been given a per field allowance of £800m, which licence holders are able to utilise to offset the Supplementary Charge, providing a tax benefit of up to £160m per field. Both Kraken and Mariner qualify for the heavy oil field allowance and we see this as a highly positive development to ensure continued investment in the North Sea.

Outlook

Nautical's share price performance over the period reflects the reality that the Company hasn't been immune to recent economic conditions. We will continue to manage our cash resources wisely and reserve spending only for those activities which we believe will lead to a material increase in shareholder value.

The development of the Group's assets going forward will depend not only on technical success, but also on the continued ability of the Group to obtain financing through the availability of debt and equity funding and other means. Based on the year end cash position of £19.1m and the full availability of the £7.5m secured facility, the Group currently believes it has sufficient financial resources to meet the immediate needs of the business as we progress Kraken and Mariner towards development decisions.

Whilst the overall economy is fragile and the farmout market remains soft, we are encouraged by the recent capital raising transactions in the E&P sector, which suggest both an improvement of the capital markets and a refocusing on the North Sea sector. This, combined with the tax incentives for heavy oil, a more competitive cost environment and a steadier oil price, gives Nautical significant cause for optimism.

Will Mathers

Finance Director

Consolidated income statement

For the year ended 30 June 2009

£'000 £'000
Revenue 25 -
Cost of sales (28) -
Impairment & operating costs of extended well test (2,472) (157)

equipment
Gross loss (2,475) (157)
Exploration & evaluation: gain on farmout 491 -
Exploration & evaluation: expense (4,526) (3,294)
Administrative expenses (1,577) (1,490)
Foreign exchange gain / (loss) 486 (171)
Operating loss (7,601) (5,112)
Finance income 1,314 1,130
Finance costs (349) (538)
Loss before tax (6,636) (4,520)
Tax 749 -
Loss for the year (5,887) (4,520)

Attributable to:
Equity holders of the Company (5,887) (4,505)
Minority interests - (15)
(5,887) (4,520)
Basic and diluted loss per share (9.28) (7.44)

The results above were entirely derived from continuing operations.
Consolidated balance sheet

As at 30 June 2009
At At
30-Jun-09 30-Jun-08
£'000 £'000

Non-current assets
Intangible assets 48,857 56,400
Property, plant and equipment 277 2,446
Long-term deposits 1,000 -
50,134 58,846

Current assets
Trade and other receivables 573 604
Short-term deposits 16,000 15,000
Cash and cash equivalents 3,061 5,118
19,634 20,722
Total assets 69,768 79,568

Current liabilities
Trade and other payables (809) (4,658)

Non-current liabilities
Deferred tax (5,682) (6,431)
Provisions (3,466) (3,024)
(9,148) (9,455)
Total liabilities (9,957) (14,113)
Net assets 59,811 65,455

Equity attributable to equity holders
Called up share capital 11,588 11,588
Share premium 37,748 37,748
Other reserves 29,169 29,169
Cumulative translation reserve (1,659) (1,659)
Accumulated losses (17,035) (11,391)
Total equity 59,811 65,455

The financial statements were approved by the Board on 6 November 2009 and were signed on its behalf by:

S Jenkins W Mathers

Chief Executive Finance Director

Consolidated statement of changes in equity

For the year ended 30 June 2009
Cumulative
Share Share Other translation Retained Minority Total
capital premium reserves reserve earnings interests equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2007 9,683 20,491 29,169 (1,330) (11,612) 4,219 50,620

Currency translation
adjustments* - - - (329) - 72 (257)

Total expenses recognised
directly in equity* - - - (329) - 72 (257)
Loss for the year - - - - (4,505) (15) (4,520)

Total recognised income
and expense for the year* - - - (329) (4,505) 57 (4,777)
Share-based payments - - - - 450 - 450
New shares issued 1,905 18,095 - - - - 20,000

Costs associated with
issuance of shares* - (838) - - - - (838)

Effect of change in
minority interest* - - - - 4,276 (4,276) -
At 30 June 2008 11,588 37,748 29,169 (1,659) (11,391) - 65,455
Loss for the year - - - - (5,887) - (5,887)

Total recognised income
and expense for the year* - - - - (5,887) - (5,887)
Share-based payments - - - - 243 - 243
At 30 June 2009 11,588 37,748 29,169 (1,659) (17,035) - 59,811
Consolidated cash flow statement

For the year ended 30 June 2009

£'000 £'000
Net cash outflow from operating activities (367) (1,684)

Cash flows from investing activities
Finance income 840 988
Expenditure on development and production assets (285) -
Expenditure on intangible assets (11,519) (7,222)
Increase in cash placed on short-term deposit (1,000) (15,000)
Increase in cash placed on long-term deposit (1,000) -
Proceeds from asset disposals 11,938 -
Net cash flow from investing activities (1,026) (21,234)

Cash flows from financing activities
Proceeds from issue of ordinary shares - 19,162
Increase in amounts due to JV Partners - 562
Finance expense (156) (366)
Repayment of balances due to related undertakings (508) (265)
Net cash flow from financing activities (664) 19,093
Decrease in cash and cash equivalents (2,057) (3,825)
Cash and cash equivalents at beginning of year 5,118 8,943
Cash and cash equivalents at end of year 3,061 5,118

Notes

1. Basis of Accounting and Presentation of Financial Information

Whilst the financial information included in this announcement has been prepared in accordance with International Financial Reporting Standards (IFRS), this announcement does not contain sufficient information to comply with IFRS. Full financial statements that comply with IFRS will be available to be downloaded from the Company's website at www.nauticalpetroleum.com during the week commencing 9 November 2009.

The financial information set out in the announcement does not constitute the Company's statutory accounts for the year ended 30 June 2009 or the year ended 30 June 2008. The financial information for the year ended 30 June 2009 and the year ended 30 June 2008 are extracted from the statutory accounts of Nautical Petroleum plc. The auditors, Ernst & Young LLP, reported on those accounts and their report was unqualified.

The Annual Report for the year ended 30 June 2009, including the auditors' report, will be posted to shareholders during the week commencing 9 November 2009 and will be available in hard copy from Nautical Petroleum plc, Parnell House, 25 Wilton Road, London SW1V 1YD.

This announcement was approved by the board on 6 November 2009.

2.*Operating loss

£'000 £'000

Operating loss is stated after charging:
Exploration and evaluation: gain (491) -

Exploration and evaluation: expense

3.*Loss per share

Loss for the year attributable to equity holders (£'000) (5,887) (4,505)
Basic weighted average number of shares in issue in the 63,408 60,590

year (thousands)
Basic and diluted loss per ordinary share (pence) (9.28) (7.44)

4.*Share capital
At 30 June 2009 At 30 June 2008
Number £'000 Number £'000

Authorised Ordinary shares of 20p each 100,000,000 20,000 100,000,000 20,000 Issued
Ordinary shares of 20p each 63,408,291 11,588 63,408,291 11,588

The movement on issued shares is set out in the following table. All movements are for ordinary 20p shares as adjusted for the 1 for 20 share consolidation, which took place on 25 September 2008.

5.*Net cash flows from operating activities

£'000 £'000
Loss for the year (5,887) (4,521)
Finance income (1,314) (1,130)
Finance costs 349 538
Taxation (749) -
Impairment of equipment 2,376 -
Exploration gain (491) -
Exploration costs written off 4,057 3,244
Share-based payment charges 243 450
Depreciation 79 142
Unrealised foreign exchange movements 804 171
Operating cash flow before working capital movements (533) (1,106)
Decrease/(increase) in trade and other receivables 38 (432)
Increase/(decrease) in trade and other payables 128 (146)
Net cash outflow from operating activities (367) (1,684)

6. Annual General Meeting

The Annual General Meeting will be held at Hesperia Hotel, 2 Bridge Place, London SW1V 1QA on Wednesday 16 December 2009 at 10:00am.

This information is provided by RNS The company news service from the London Stock Exchange

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