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Trap Oil Group plc (TRAP)

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Thursday 02 May, 2013

Trap Oil Group plc

Acquisition of additional 85 per cent. in Surprise

RNS Number : 8104D
Trap Oil Group plc
02 May 2013
 

 

2 May 2013

 

Trap Oil Group plc

("Trapoil" or the "Company")

 

Acquisition of an Additional 85 per cent. Interest in Licence P.1267, Blocks 12/25a and 13/21b ("Surprise")

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 the following update.

Surprise

On 1 May 2013, Trapoil agreed to acquire an additional 85 per cent. working interest in Licence P.1267 (Blocks 12/25a & 13/21b) containing the Surprise and Nutmeg oil discoveries (the "Acquisition"), from Dana Petroleum (E&P) Limited ("Dana") in accordance with the terms of the joint operating agreement previously entered into by the parties in respect of Licence P.1267, following Dana's decision to withdraw from the Licence.

The Surprise/Nutmeg discoveries are located in the Moray Firth Basin in the Central North Sea and contain proven oil in the Early Cretaceous Coracle and Punt Sandstone reservoirs with gross recoverable resources estimated by the Company's management to be in the order of approximately 12 million barrels of oil. Trapoil currently plans, upon receiving formal approval by DECC as an approved operator, and, subject to securing the requisite funding, to proceed to drill a single sub horizontal deviated appraisal well to seek to establish commercial flow rates from the Coracle reservoir. If successful Trapoil would then aim to progress the asset to the field development plan stage.

Completion of the Acquisition is conditional upon, inter alia, receipt of the requisite DECC approval, third party consents and finalisation of the assignment documentation following which the working interests of the remaining partners in Licence P.1267 will become 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.) There are currently no work programme commitments outstanding to either DECC or the partnership.

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

"Increasing our equity position in the promising Surprise asset will enable the group to secure operatorship, subject to DECC's approval, and therefore assume greater control over the scheduling of potential future activities to further progress this appraisal asset towards development."

 

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 ShanWillenbrock

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 CGGVeritas Services (UK) Limited ("CGGVeritas"), 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 CGGVeritas' state of the art 3D seismic database over the majority of the Central North Sea area on negotiated terms. CGGVeritas 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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