UK: Lybster Field Put on Production

Trapoil , the independent oil and gas exploration and appraisal company focused on the UK Continental Shelf (“UKCS”) region of the North Sea, yesterday announced the start of production at its Lybster field situated on Block 11/24 – 3v2  (“Lybster”), which is operated by Caithness Oil Limited.

The Lybster production facilities have been installed and commissioned and commercial arrangements are in place to truck and sell the oil produced to ConocoPhillips at its Immingham refinery. Lybster was put on production on 2 May 2012 and the initial truckloads are expected to arrive at the Immingham refinery today. A further announcement will be made in due course, with respect to the anticipated volumes and production profiles, once production from Lybster has stabilised.

Trapoil holds a 35 per cent. carried interest in the P.1270 licence which formed part of the asset portfolio of Reach Oil & Gas Limited (“Reach”), acquired by the Company in July 2011. From the date of first production, Caithness is entitled to recover all development and operating costs attributable to Trapoil’s carried interest out of net revenue achieved from the sale of Trapoil’s percentage interest share of the crude oil produced. Until such costs have been fully recovered, Trapoil will receive approximately 20 per cent. of net petroleum revenues attributable to its carried interest in Lybster.

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Source: Trapoil, May 4, 2012