Last checked at 17 Sep 2012 07:00
Trap Oil Group plc
("Trapoil" or the "Company")
Update re Inverewe Prospect
Trapoil (AIM: TRAP), the independent oil and gas exploration and appraisal company focused on the UK Continental Shelf ("UKCS") region of the North Sea announces that it has been informed by Centrica North Sea Oil Limited ("Centrica") that Centrica has elected not to drill an appraisal well on the Inverewe, formerly known as the Kew, prospect (Licence P.1864, Block 9/24d) in which Trapoil currently has a 20 per cent. working interest.
Trapoil is in discussions with its other partner in the prospect, JX Nippon Exploration and Production (U.K.) Limited ("JX Nippon"), and understands that JX Nippon remains supportive of drilling an appraisal well, subject to the involvement of a new partner to replace Centrica as operator by 09 January 2013, being the end of the Promote Period to the licence. Trapoil has already commenced preliminary discussions with a number of potential farm-in partners and will make further announcements as appropriate.
Under the terms of the farm-in agreement, dated 23 November 2011 and announced on 24 November 2011, Centrica will pay Trapoil a walk away fee of £1.5 million. As a result, Trapoil will have an 80 per cent. working interest in Inverewe.
Trapoil remains of the view that Inverewe represents an exciting opportunity and is committed to finding a partner to work alongside it and JX Nippon to exploit the potential that exists within the licence area.
**ENDS**
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 R. van Erp
| Tel: 0207 448 0200
|
Cardew Group | Tim Robertson Shan Shan Willenbrock Lauren Foster
| Tel: 0207 930 0777 trapoil@cardewgroup.com |
**ENDS**
Notes to editors:
·; The Trapoil 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.