(NPE.L) Nautical Petroleum PLC Buy/Sell

RNS Number : 0211R Nautical Petroleum PLC 23 April 2009

For immediate release 23 April 2009

Nautical Petroleum plc

("Nautical" or "the Company")

Response to Chancellor's Budget Speech

Nautical Petroleum plc (AIM: NPE), the developer of heavy oil assets on the UKCS and in Europe, notes provisions made by HM Treasury in the Budget released yesterday.

The Chancellor has announced the introduction of a New Field Allowance, which licence holders will be able to offset against Supplementary Corporation Tax ("SCT") (20 per cent), both on the UKCS and onshore. It will also ensure investment by independents, in addition to global energy players, in this key hydrocarbon producing region. Heavy oil related developments have been given a Field Allowance of £800 million by HMT as a specific target.

On the basis of these provisions applying to Nautical and its UKCS heavy oil interests the Directors believe that the New Field Allowance will enhance the value of the Company's 35% share of Kraken by £56 million and also Nautical's 26.67% share of Mariner by £43 million.

Commenting on these developments Steve Jenkins, Chief Executive Officer of Nautical, said:

"Nautical Petroleum is pleased by HMT's announcement of the new allowance. It provides a worthwhile incentive for Nautical and its partners to maintain the planned programmes to achieve the Field Development Plan and oil production for the two fields. It will improve the profitability of each of these developments and encourages Nautical to continue to explore and develop further opportunities in the UKCS."

For further information please contact:

Nautical Petroleum plc 020 7550 4890

Steve Jenkins, Chief Executive Officer Paul Jennings, Commercial Director Will Mathers, Finance Director

Buchanan Communications 020 7466 5000

Ben Romney Ben Willey

Evolution Securities - Nominated Advisor & Joint Broker 020 7071 4300

Rob Collins Chris Sim Neil Elliot Adam James

Ambrian Partners Limited - Joint Broker 020 7634 4700

Richard Swindells Alexandra Carse

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

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