Regulatory Story
Go to market news section View chart   Print
RNS
Trap Oil Group plc  -  TRAP   

Farm-in Agreement

Released 07:00 22-Jan-2013

RNS Number : 0430W
Trap Oil Group plc
22 January 2013
 



 

Trap Oil Group plc

("Trapoil" or the "Company")

 

Farm-in Agreement

 

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 on 18 January 2013 it completed a farm-in agreement with Extract Petroleum Limited ("Extract") with respect to the acreage awarded to it in the recent 27th Seaward Licensing Round, the results of which were announced by the Department of Energy and Climate Change ("DECC") on 25 October 2012. The acreage concerned comprises one Promote Licence (P.1938) covering thirteen blocks or part blocks totaling 1,026Km2. Subject to DECC's approval, Trapoil will become operator of the acreage and farm-in for a 100 per cent. working interest while Extract will retain a 1 per cent. royalty interest over any future production from the acreage.

 

Trapoil's farm-in obligations are to fund and undertake a preliminary evaluation of the potential for production from tight reservoirs on the acreage comprising Promote Licence (P.1938), based on the acquisition of appropriate 2D and 3D seismic data. If the preliminary results are encouraging, Trapoil subsequently intends to secure partners to further develop the concept with the ultimate objective of drilling one or more proof of concept wells. Trapoil would seek to achieve a carried interest in the initial drilling effort in return for its upfront work in developing the prospects to a drill ready stage.

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

"This farm-in agreement with Extract plays to our strengths as a technically led company pursuing innovative initiatives relating to the exploration and extraction of oil from potentially high impact prospects in the UK North Sea."

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

FirstEnergy Capital LLP

Hugh Sanderson

David van Erp

 

Tel:  0207 448 0200

 

Mirabaud Securities LLP

Peter Krens

 

Tel:  0207 321 2508

Cardew Group

Tim Robertson

Shan Shan Willenbrock

Lauren Foster

 

Tel:  0207 930 0777

trapoil@cardewgroup.com

**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.

 

Additional information on the Promote Licence (P.1938) blocks subject to the farm-in agreement

 

·       Blocks 3/2c & 3/7d (split) located in the East Shetland Basin situated in close proximity to the Ninian field.

·       Blocks 3/4c (split), 3/9c, 3/14j, 211/22b, 211/27d, 211/28b & 211/29e located in the East Shetland Basin situated in close proximity to the Alwyn, Hutton, Brent and Cormorant fields.

·       Blocks 3/13b & 3/14h located in the East Shetland Basin situated in close proximity to the Dunbar field.

·       Blocks 16/12b & 16/17c located in the South Viking Graben situated in close proximity to the Brae fields and the Trees Block and T Block fields.

 

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.

 

·      Achieving robust production from tight reservoirs using pioneering technology, in sand, silt and shales, is the driving force behind the sizeable increase in oil and gas production in the United States.

 

 

 

 


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


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Farm-in Agreement - RNS