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Trap Oil Group plc (TRAP)

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Thursday 27 June, 2013

Trap Oil Group plc

Operational Update re Athena Oilfield

RNS Number : 9827H
Trap Oil Group plc
27 June 2013
 



 

 

 

Trap Oil Group plc

("Trapoil" or the "Company")

 

Operational Update re Athena Oilfield ("Athena")

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, notes the announcement made today by Ithaca Energy Inc. (TSX: IAE; AIM: IAE) ("Ithaca"). As part of this announcement Ithaca provided the following operational update with regard to the performance of Athena where it's UK subsidiary is the operator and in which Trapoil's subsidiary holds a 15 per cent. working interest.

"During the quarter the Athena field completed its first full year of operations, with gross production of approximately 3.6 million barrels having been produced to date.

 

Gross daily production from the field is currently at a reduced level, primarily as a function of one of the four producing wells, the "P2" well, being temporarily shut-in awaiting a repair to the electrical cable serving that particular well.  A diving support vessel has been contracted to perform the necessary operations to fix the electrical fault and reinstatement of production from the well is anticipated within the next few weeks. 

 

During the quarter, the Athena field commenced the production of water with oil.  This is significantly later than originally anticipated.  As previously noted, the evolution of the water production profile will now provide important information for forecasting the ultimate field production profile and the scope for future potential upside investment opportunities"

 

Subsequent to the shut-in of the "P2" well Athena is currently producing just under 9,000 barrels of oil per day.

  

Mark Groves Gidney, Chief Executive Officer of Trapoil, commented:

"We anticipate that the planned repairs to the "P2" well will be completed quickly with production from all four producing wells being reestablished. At current production levels, and after taking account of other factors such as oil prices and hedging arrangements, Trapoil currently expects to receive approximately £1.5m net cash inflow per month from Athena. Our view on the level of ultimately recoverable reserves remains unaltered as there is still insufficient water production to draw any firm conclusions at this stage."

 

Enquiries:

Trap Oil Group plc

 

Mark Groves Gidney, CEO

 

Tel:  0203 170 5586

www.trapoil.com

 

Strand Hanson Limited

James Harris

Matthew Chandler

James Spinney

 

Tel:  0207 409 3494

Mirabaud Securities LLP

Peter Krens

 

Tel:  0207 321 2508

FirstEnergy Capital LLP

Hugh Sanderson

David van Erp

 

Tel:  0207 448 0200

 

Cardew Group

Shan Shan Willenbrock

Lauren Foster

 

Tel:  0207 930 0777

[email protected]

**ENDS**

 

martin David, Technical Director of the 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 37 years experience in the oil industry.

 

Notes to editors:

 

·      The 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 (UK) Limited ("CGG"), Applied Drilling Technology International and Exploration Geosciences Limited.

 

·      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.

 

 


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