Trapoil set back in production of Romeo oil well

published 27 December 2012

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.

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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

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.