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Trap Oil Group plc (TRAP)

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Thursday 02 May, 2013

Trap Oil Group plc

Result of AGM

RNS Number : 8646D
Trap Oil Group plc
02 May 2013
 



 

Trap Oil Group plc

("Trapoil" or the "Company")

Result of Annual General Meeting

 

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 that the resolutions proposed at the Annual General Meeting ("AGM") held earlier today, as set out in the notice dated 5 April 2013, were all duly approved by shareholders.

 

Mark Groves Gidney, CEO of Trapoil, highlighted, inter alia, the following points in his AGM presentation:

 

·     Trapoil's strategy is to deliver shareholder value from its exploration and appraisal activities supported by a sound financial base and strong cash flow generation from existing production.

 

·     The previously announced effective acquisition cost of the Company's 15 per cent. working interest in Athena (Licence P.1293, Block 14/18b) has been reduced from £21.8m to £17.6m reflecting a £4.2m final post completion adjustment in the Company's favour. The £4.2m adjustment principally relates to unsold oil in the Athena FPSO, on the shuttle tanker and at the terminal, less operating costs, as at the date of completion on 21 December 2012.

 

·     As at 31 December 2012, Trapoil's cash resources totalled approximately £9.3m which were subsequently augmented by the receipt of the abovementioned £4.2m post completion adjustment in respect of the Athena acquisition in April 2013. Since January 2013, Trapoil's share of production from Athena has delivered approximately £2m per month net cash inflow with payback on our investment currently anticipated in less than a year assuming the current production profile is maintained. The Company will benefit from valuable tax efficiencies resulting from this income stream which has also enabled a US$20m debt facility to be secured from GE Capital with associated hedging arrangements from BP International. Trapoil is fully funded to execute its current committed capital expenditure programme.

 

·     Trapoil has recently announced that it has secured two new consortium partners, TAQA Bratani UK Limited, a subsidiary of the Abu Dhabi National Energy Company, and CIECO Exploration and Production UK Limited, a wholly owned subsidiary of ITOCHU Corporation of Japan. Both partners are committed to the UK North Sea and have the financial resources to engage in future exploration activities principally in respect of opportunities secured via farm-in transactions and new licensing rounds.

 

·     Trapoil has an active exploration programme planned for 2014/15 which is currently expected to include high impact wells at Crazy Horse (Licence P.1650, Block 14/13) and Niobe (Licence P.1889, Blocks 12/26b & 27) in addition to follow up wells on the discoveries at Romeo (Licence P.1666, Block 30/11c) and Brulé (Licence P.1768, Blocks 14/14b, 18c & 19c).

 

·     The Company is seeking to accelerate an operated four well appraisal programme once new partners have been secured. Trent East (Licence P.685, Block 43/24a), Knockinnon (Licence P.1270, Rest of Block 11/24 Sub-Area), Orchid (Licence P.1556, Block 29/1c) and Surprise (Licence P.1267, Blocks 12/25a & 13/21b) could potentially be appraised in 2014 if the requisite funding can be secured.

 

A copy of the full presentation made to shareholders attending today's AGM will shortly be made available to download from the Company's website at www.trapoil.com.

 

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**

 

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 partnersand 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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