Last checked at 7 Jan 2013 07:00
Trap Oil Group plc
("Trapoil" or the "Company")
Proposed Acquisition of Summit Petroleum Limited's entire
45 per cent. Interest in Licence P.1556, Block 29/1c (the Orchid Oil Discovery)
Trapoil (AIM: TRAP), the independent oil and gas exploration and appraisal company focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to announce that it has entered into non-binding heads of terms potentially to acquire an additional 45 per cent. working interest in Licence P.1556, Block 29/1c containing the Orchid oil discovery (the "Proposed Acquisition") from Summit Petroleum Limited ("Summit") for £1.5 million in cash.
The Proposed Acquisition is conditional, inter alia, upon receipt of the requisite third party and Department of Energy and Climate Change ("DECC") consents and the execution of a definitive sale and purchase agreement in due course. Trapoil and Summit have also agreed to work together to help secure the appointment of the Company's subsidiary as operator of Licence P.1556, Block 29/1c (following Summit's proposed resignation as operator on completion of the transaction).
On completion of the Proposed Acquisition, the working interests of the remaining partners in exploration Licence P.1556 will be Trapoil (60 per cent. and potential operator), Valiant Exploration Limited (30 per cent.) and Atlantic Petroleum UK Limited (10 per cent.). There are currently no work programme commitments outstanding to either DECC or the licence partners.
Mark Groves Gidney, Chief Executive Officer of Trapoil, commented:
"I am pleased we have managed to secure this opportunity to potentially increase our existing interest and move this asset forward in the short term. It marks another step towards Trapoil becoming a well established and recognised operator 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 |
Mirabaud Securities LLP | Peter Krens
| Tel: 0207 321 2508 |
FirstEnergy Capital LLP | Hugh Sanderson David van Erp
| Tel: 0207 448 0200
|
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 within 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.
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.