UK: ConocoPhillips Buys Lacewing from Trapoil

Trapoil has sold, subject to DECC and partner approval, its 10 per cent. working interest in its Lacewing asset (P.1181, Block 23/22b) (“Lacewing”) to ConocoPhillips (U.K.) Limited (“ConocoPhillips”) for a consideration of £1 million (the “Consideration”) to be satisfied in cash on completion of the disposal, which is anticipated to be in approximately one month’s time.

Trapoil acquired its 10 per cent. working interest in Lacewing, through the acquisition of Reach Oil & Gas Limited in July 2011.

Block 23/22b is located on the Eastern flank of the Central Graben and contains the Corrie Jurassic oil discovery and the Triassic high temperature high pressure (“HTHP”) Lacewing prospect which is scheduled to be drilled in 2012.

Trapoil’s CEO Mark Groves Gidney said: “Selling Lacewing is part of our strategic portfolio management: this HTHP exploration well is expensive, at close to £40 million, and a successful well is likely to result in several appraisal wells before submission of a Field Development Plan to DECC. We have sold to ConocoPhillips in the belief they will become the new operator, and as such have agreed to what we consider to be a fair price and to avoid the substantial and imminent costs we would have otherwise incurred from retaining the paying interest.

He added: “The proceeds from the sale of Lacewing will provide funds that may be deployed in a number of opportunities under consideration to allow us to maintain our goal of drilling eight wells a year. We are encouraged that the various operating partners are progressing to secure rigs for the current well programme in 2012.”

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Offshore Energy Today Staff, January 6, 2012