Jersey Oil&gas Regulatory News (JOG)

Trap Oil Group Plc

("Trapoil" or the "Company")

Corporate and Operational Update

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 a corporate and operational update.

Licence P.1293, Block 14/18b - Athena Oil Field ("Athena")

The Athena Oil Field ("Athena"), in which Trapoil holds a 15 per cent. equity interest, has stabilised at gross production rates of approximately 4,800 bopd (720 bopd net to Trapoil) following the work over on the P4 production well and further intervention work on the P1 and P3 production wells.

28th Seaward Licensing Round

We are pleased to announce that in the 28th Seaward Licensing Round we were awarded Licence P2170, Blocks 20/5b and 21/1d with our consortium partner CIECO Exploration and Production (UK) Limited where each party currently has a 50 per cent. interest. 

Licence P.1889, Blocks 12/26b and 12/27 - Niobe prospect

A contract has been signed for a jack-up rig for the drilling of a well to test the Niobe prospect (formerly named Kratos). The well is planned for 2Q 2015 and will fulfill the outstanding work obligation attached to the licence.

Other Licences

A number of our licences have come to the end of their licence period and despite rigorous attempts to farm these out, we have been obliged to relinquish these, in accordance with the term of the licenses. These include Licence P.1267, Blocks 12/25a & 13/21b ("Surprise & Nutmeg"), Licence P.2026 Block 16/18c ("Savannah"), Licence P.2032, Blocks 21/8c, 9c, 10c, 14a & 15b ("Valleys") and Licence P.1938 Blocks 3/2c, 4c, 7d, 9c, 13b, 14h,14j, 16/12b, 17c, 211/22b, 27d, 28b & 29b ("Unconventional").

Cash Position

Further to the Company's announcements of the 16 October 2014 and 4 November 2014, it has now paid the Athena workover costs and the majority of the expected abandonment provision for Athena and plans to pay the final installment of c.£1.3m during 2015. We have also pre paid the expected drilling costs for the Niobe prospect and as a result, as at 31 December 2014, the Company's net unrestricted cash reserves amounted to approximately £7m.

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