Trapoil announces proposed acquisition of Orchid oil discovery

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.

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.

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

Recommended

The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
7 sin stocks to buy yielding up to 8%!
Share tips

7 sin stocks to buy yielding up to 8%!

Sin stocks don’t have the best reputation, but when it comes to investment returns, they’re certainly worth a closer look.
2 Dec 2022
Share tips of the week – 2 December
Share tips

Share tips of the week – 2 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Dec 2022
3 emerging-market stocks to watch
Share tips

3 emerging-market stocks to watch

The top emerging-market stocks to keep an eye on, according to Union Bancaire Privée’s Eli Koen.
1 Dec 2022

Most Popular

Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022
Fan heater vs oil heater – which is cheaper?
Personal finance

Fan heater vs oil heater – which is cheaper?

Sales of portable heaters have soared, as households look to cut their energy costs. But which is better: a fan heater or an oil heater? We put them t…
21 Nov 2022
UK house prices fall at their fastest pace since 2020
House prices

UK house prices fall at their fastest pace since 2020

UK house prices fell 1.4% in November, their biggest fall since June 2020.
1 Dec 2022