Advertisement

Trapoil set back in production of Romeo oil well

Trapoil announced Thursday it has fallen behind schedule on production of its Romeo oil well in the UK central North Sea, as the company completed its acquisition of Athena field.

Trapoil announced Thursday it has fallen behind schedule on production of its Romeo oil well in the UK central North Sea, as the company completed its acquisition of Athena field.

The independent oil and gas exploration company said weather conditions had halted drilling at Romeo, pushing the operation back by 16 days.

Advertisement - Article continues below

Romeo is a four-way drip closure mapped at Base Cretaceous Unconformity with Fulmar sands at the reservoir objective and a total best estimate of gross prospective resources of approximately 44m barrels of oil.

The Awilco WilHunter rig is drilling the well to an estimated depth total of 15,180 feet measured depth below rotary table.

Despite the setback, Trapoil has sealed the deal on its 15% acquisition of working interest in the Athena field oil well in the Outer Moray Firth area of the North Sea.

The transaction was completed Friday after a £6m reduction in the amount payable to Dyas UK, calculated as a £2.7m reduction in the base consideration and a reduction of £3.3m to the capex payable by Trapoil.

Athena has been achieving a steady production rate of 11,000 barrels of oil per day gross with no water production.

The company expects returns on its investment in just over a year if production remains steady. Trapoil has calculated an estimated £2.0m monthly income from Athena.

Trapoil shares fell 0.75% to 16.62p at 9:40 Thursday.

RD

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/commodities/gold/601444/these-seven-charts-show-exactly-why-you-must-own-gold-today
Gold

These seven charts show exactly why you must own gold today

Covid-19 is accelerating many trends that were already in existence. The rising gold price is one such trend. These seven charts, says Dominic Frisby,…
3 Jun 2020
Visit/investments/stockmarkets/601460/disease-rioting-and-mass-unemployment-so-why-are-markets-soaring
Stockmarkets

Disease, rioting and mass unemployment – so why are markets soaring?

Despite some pretty strong headwinds in the last year, America’s S&P 500 stock index is close to all-time highs. John Stepek explains why markets seem…
4 Jun 2020
Visit/investments/commodities/601433/commodities-possibly-the-biggest-opportunity-in-todays-markets
Commodities

This looks like the biggest opportunity in today’s markets

With low interest rates and constant money-printing, most assets have become expensive. But one major asset class hasn’t. John Stepek explains why com…
2 Jun 2020