Jersey Oil & Gas plc Regulatory News (JOG)

Trap Oil Group plc

("Trapoil" or the "Company")

Update on Trent East Terrace Area

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 an update in respect of its proposed farm-in to the Trent East Terrace Area and its existing interests in certain adjacent acreage.

Proposed Farm-in to the Trent East Terrace Area

As announced previously, on 7 February 2013 Trapoil entered into a conditional sale and purchase agreement (the "Agreement") to potentially acquire a 33.33 per cent. working interest in Licence P.685 (Block 43/24a) (the "Trent East Terrace Area" or "TET"), containing the Trent East gas discovery, from Perenco UK Limited ("Perenco"). Holywell Resources Limited ("Holywell") is also a party to this Agreement under the terms of which it agreed to acquire Perenco's residual 66.67 per cent. interest in TET. In the event that all of the conditions precedent were not satisfied or waived by 30 September 2013 any of the parties were thereafter entitled to provide 10 days notice of their intention to terminate their involvement.

As at 30 September 2013 some legal documentation relating to certain conditions precedent, although acceptable to Trapoil, had not been agreed by Holywell. Given the circumstances Trapoil had no confidence that funds would be placed in an escrow account to cover the anticipated costs of an appraisal well. On 9 October 2013 Perenco issued a notice of its intention to terminate the Agreement in the event that the conditions precedent are not fulfilled by 19 October 2013.

Acreage adjacent to TET

Trapoil's subsidiary, Trap Oil Ltd, currently holds a 30 per cent. working interest in the Conrad prospect (Licence P.1923, Block 43/20c)("Conrad"), an adjacent block to TET, which it acquired from Holywell last year for a nominal consideration. Trapoil's partners in Conrad are Centrica Resources Limited ("Centrica") (40 per cent. working interest and operator) and Holywell (30 per cent. working interest). A decision to either drill or drop this licence will need to be made by the partnership group by 30 January 2014.

Trapoil also has an outstanding licence application under the Department of Energy and Climate Change's ("DECC's") 27th Seaward Licensing Round for acreage proximate to the Trent East Terrace Area containing the Opal discovery. This potential full or partial licence award by DECC remains pending.

The Company has to date been assessing the possible development of Conrad, and the abovementioned potential additional licence award from DECC, as part of its envisaged development plan for TET which comprised a single well tie-back to the Trent platform operated by Perenco. In light of the termination of the TET farm-in opportunity, Trapoil will now proceed to review and evaluate its position with regards to the adjacent acreage.

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

"Whilst it is disappointing to no longer be proceeding with the TET farm-in opportunity, we place great importance on working closely with fully aligned partners and believe that the termination of the Agreement is in the best interests of all parties concerned."

Enquiries:

**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.

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 CGG Services (UK) Limited ("CGG") and Applied Drilling Technology International.

· 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 CGG's state of the art 3D seismic database over the majority of the Central North Sea area on negotiated terms. CGG 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.