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Trap Oil Group plc (TRAP)

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Wednesday 11 February, 2015

Trap Oil Group plc

Corporate and Operational Update

RNS Number : 6034E
Trap Oil Group plc
11 February 2015
 

Trap Oil Group Plc

("Trapoil" or the "Company")

 

Corporate and Operational Update

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, announces a further corporate and operational update.

 

Additional Licence Relinquishment

Further to the Company's announcement of 8 January 2015, the Board has decided to also relinquish Licence P.1556 Block 29/1c ("Orchid"), which was becoming unduly expensive to maintain. The decision to relinquish this additional licence was taken in conjunction with our partner following extensive efforts to secure a potential farm-out.

 

The impairment charge associated with the relinquishment of Orchid, to be recorded in the Company's results for the current financial year to 31 December 2014, is expected to amount to approximately £5.8m. This impairment charge will not affect the Company's net unrestricted cash reserves, which, as previously announced, amounted to approximately £7m as at 31 December 2014.

 

Licence P.1293, Block 14/18b - Athena Oil Field

As announced on 8 January 2015, the Athena Oil Field, Licence P.1293, Block 14/18b ("Athena"), in which Trapoil holds a 15 per cent. equity interest, had achieved stabilised gross production rates of approximately 4,800 barrels of oil per day ("bopd") (720 bopd net to Trapoil), following the completion of the workover and certain other further intervention work. Production rates continue at around this level, however at the currently depressed oil price of approximately US$58/barrel the field is significantly loss making and the Company is currently incurring a cash outflow of approximately £380,000 per month after absorption of its share of the field's operating costs. We are working closely with the operator and our other licence partners to advance opportunities to enhance the financial performance of the field.

 

Exploration and Appraisal Interests

We continue to develop, and seek potential farm-out partners where appropriate, the remaining attractive exploration and appraisal assets in the group's portfolio, including Licence P.1889, Blocks 12/26b and 12/27 ("Niobe"), for which a well is planned for Q2 2015; Licence P.1610 Block 13/23a ("Magnolia"), for which seismic evaluation work is ongoing in respect of a possible extension of the adjacent Liberator discovery; Licence P.1666, Block 30/11c ("Romeo"), a discovery requiring further appraisal; Licence P.1989 Blocks 14/11, 12 & 16 ("Homer") and Licence P.2170, Blocks 20/5b and 21/1d ("Cortina").

 

 

Enquiries:

Trap Oil Group plc

 

Scott Richardson Brown, Finance Director

Tel:  020 3691 2015

www.trapoil.com

 

Strand Hanson Limited

James Harris

Matthew Chandler

James Spinney 

 

Tel:  020 7409 3494

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]

 

**ENDS**

 

Martin David, Managing Director of Trap Oil Limited, the Company's principal North Sea operating company, has reviewed and approved the technical information contained in this announcement in his capacity as a qualified person under the AIM rules. Mr David holds a BSc degree in Geology from the University of London and has over 38 years' experience in the oil industry.


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