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.
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
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
FTSE 100 dividends: where to find the best yields for UK equities
FTSE 100 dividend forecasts have plateaued but investors can still find good yields in UK equities with payments expected to reach £78.6bn in 2024
By Katie Williams Published
-
Will the R&D tax credit change in the Autumn Budget?
Will Labour revise state help designed to foster R&D in the upcoming Autumn Budget?
By David Smith Published