Trap Oil on Monday announced it has put in an offer to acquire a further interest in the licence containing the Orchid oil discovery in the Central North Sea.
The oil and gas exploration company has entered into non-binding heads of terms to potentially buy an additional 45% working interest in Licence P.1556, Block 29/1c from Summit Petroleum for £1.5m in cash.
The proposed acquisition will be subject to approvals from the Department of Energy and Climate Change and the execution of a definitive sale and purchase agreement.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Trap Oil will hold 60% of the licence following the acquisition. Valiant Exploration Limited owns 30% while Atlantic Petroleum UK has a 10% interest.
Mark Groves Gidney, Chief Executive Officer of Trap Oil, said: "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."
Shares were up 0.75% to 16.88p at 11:15 Monday.
RD
-
Why CEOs deserve a pay riseOpinion The CEOs of big companies often come under fire for being grossly overpaid. But the truth, as per some economists, is the opposite. Do they merit a pay rise?
-
Europe prepares to stand alone as Trump turns on UkraineSupport for old military alliances is wavering in the US under Donald Trump. Europe’s leaders are rushing to fill the void. Simon Wilson reports
