Information  X 
Enter a valid email address

Trap Oil Group plc (TRAP)

  Print          Annual reports

Wednesday 22 January, 2014

Trap Oil Group plc

Corporate and Operational Update

RNS Number : 2020Y
Trap Oil Group plc
22 January 2014



Trap Oil Group plc

("Trapoil" or the "Company")


Corporate and Operational Update

and New Corporate Presentation


Trapoil (AIM: TRAP), the independent oil and gas exploration, appraisal and production company focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to provide a corporate and operational update and to announce that an updated corporate presentation is now available on the investor relations section of its website (


Corporate and Operational Update




The Athena Oil Field ("Athena"), in which Trapoil holds a 15 per cent. equity interest, is currently producing at a gross production rate of approximately 7,000 bopd (1,050 bopd net to Trapoil). The 'P4' well has been shut-in to monitor pressures and we continue to evaluate the most appropriate course of remedial action with the operator and our other field partners with such work planned to be carried out later this year. At this stage, the rate of depletion for Athena cannot be reliably predicted, but this is expected to become more evident as the water cut rises during the year.


Financial resources


As at 31 December 2013, unaudited net cash reserves were approximately £16 million and the group remains well funded to deliver its near term objectives. On completion of our recently announced farm-out of an interest in Valleys (Licence P.2032, Blocks 21/8c, 21/9c, 21/10c, 21/14a and 21/15b) and taking into account the Niobe well planned to be drilled in 2015 with Suncor Energy Incorporated, our committed capital expenditure across all of our licence interests will be approximately £2 million. We continue to maintain a tight control of our cost base.


In addition, Trapoil holds an interest in 4,084,198 ordinary shares in IGas Energy plc ("IGas") which it received as consideration for the disposal of its interests in certain assets to Caithness Oil Limited, as announced on 9 December 2013. This interest in IGas provides the group with possible upside exposure to the UK onshore energy production sector, with recent significant interest from major industry players in the potential of UK shale gas licences.


28th Seaward Licensing Round


Preparations are now well advanced for the Department of Energy and Climate Change's ("DECC's") 28th Seaward Licensing Round which is expected to commence during this quarter. We look forward to leveraging our technical expertise to secure opportunities to enhance our existing asset portfolio whilst earning valuable carried interests from our strategic consortium partners comprising Taqa, Cieco Exploration and Production UK Limited and Japan Petroleum Exploration Co. Limited.


Surprise asset


Further to consultation with DECC, the group has successfully retained and secured an extension until 21 December 2014 of its interest in Licence P.1267 (Blocks 12/25a & 13/21b) which contains the Surprise and Nutmeg oil discoveries (Trap Oil Limited 90 per cent. and operator, First Oil Exploration (North Sea) Limited 5 per cent. and First Oil Expro Limited 5 per cent.) with no outstanding work programme commitments. We have performed significant technical work on this asset and are endeavouring to secure a suitable farm-out partner to manage our financial exposure in respect of a potential appraisal well to assess flow rates and unlock the upside potential.


We continue to seek further opportunities to deliver value to shareholders such as our unconventional oil play where we remain confident of attracting partners during this year to target the drilling of a proof of concept well.



Trap Oil Group plc


Mark Groves Gidney, CEO


Tel:  020 3170 5586


Strand Hanson Limited

James Harris

Matthew Chandler

James Spinney


Tel:  020 7409 3494

Mirabaud Securities LLP

Peter Krens


Tel:  020 7321 2508

FirstEnergy Capital LLP

Hugh Sanderson

David van Erp


Tel:  020 7448 0200


Cardew Group

Shan Shan Willenbrock

Lauren Foster


Tel:  020 7930 0777

[email protected]



Paul Collins, Chief Operating Officer of the Company, has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM Rules. Mr Collins holds a BSc (Hons) degree in Fuel & Energy Engineering from Leeds University and a post-graduate diploma in Offshore Mechanical Engineering from Robert Gordon's Institute of Technology and has over 28 years' experience in the oil and gas industry.


Notes to editors:


·      The Trapoil Group was created in 2008 by a team of experienced industry executives with a broad range of oil and gas technical, operational and financial expertise and professional skills.


·      Trapoil has developed long term relationships with key oil industry partners and major suppliers and consultants including CGG Services (UK) Limited ("CGG") and Applied Drilling Technology International.


·      The Company utilises a research-led, knowledge-based approach to identify and deliver promising exploration and appraisal opportunities, and to this end has secured extensive long-term access to CGG's state of the art 3D seismic database over the majority of the Central North Sea area on negotiated terms. CGG is a leading pure-play geophysical services and equipment provider.  Access to such 3D seismic data serves to strengthen the Group's ability to create opportunities on both open and held acreage in the UKCS.


·      IGas (AIM: IGAS) is one of the leading producers of onshore hydrocarbons in the UK and has a current market capitalisation of approximately £318 million. The company explores and develops gas and oil reserves at onshore locations in the northwest of England, north Wales, the East Midlands and southern England.

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

a d v e r t i s e m e n t