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.
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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.
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