Jersey Oil&gas Regulatory News (JOG)

31 March 2015

Trap Oil Group Plc

("Trapoil" or the "Company")

Operational Update re Athena Oil Field

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 further operational update in respect of the Athena Oil Field, Licence P.1293, Block 14/18b ("Athena"), in which Trapoil holds a 15 per cent. equity interest.

The Athena partnership group (the "Athena Consortium") has entered into an agreement to amend the terms of its existing contract with BW Offshore (UK) Limited ("BW Offshore"), the provider and operator of the Athena Floating Production, Storage and Offloading vessel.

Under the terms of the amended contract, the Athena Consortium will make an advanced payment of a demobilisation fee and from June 2015 will share net cashflow from the field with BW Offshore. Both parties have the right to terminate on a 60-day notice period.

Whilst the amended contract reduces the Athena Consortium's overall loss exposure and currently anticipated total cash outflows going forward to the scheduled expiry of the existing contract's term in June 2016, it does necessitate a larger cash outflow in the near future than under the old contract. Most importantly, at the currently prevailing depressed oil price, Trapoil's ongoing monthly liabilities in respect of Athena will be reduced as a result of this amended contract.

As at 31 March 2015, the Company's net unrestricted cash reserves amounted to approximately £3.2m and the Board will continue to assess a number of potential funding options in light of the abovementioned demobilisation fee (US$3.0m net to Trapoil) payable to BW Offshore and the expected reduced monthly cash outflows due under the new contract terms.

A further update will be provided in due course.

Commenting on the amended contract, Marcus Stanton, Non-Executive Chairman, said:

"In light of the prevailing depressed Brent oil price, the Athena Consortium has taken prudent steps to renegotiate the terms of its existing contract with BW Offshore to mitigate its overall loss exposure. We are pleased to have agreed revised terms which equate to a cost saving of more than US$4m for Trapoil to the scheduled expiry date of the existing contract."

Enquiries:

**ENDS**

Martin David, Managing Director of Trap Oil Limited, the Company's principal North Sea operating 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 38 years' experience in the oil industry.