Trapoil , the independent oil and gas exploration and appraisal company focused on the UK Continental Shelf (“UKCS”) region of the North Sea, announced 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.”
[mappress]
Press Release, January 7, 2013