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Trap Oil says Orchid section to be side-tracked

Published: 16:59 23 Apr 2012 AEST

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North Sea explorer Trapoil (LON:TRAP) said this morning that the 12 ¼-inch section of the Orchid well bore has been re-drilled as a mechanical side-track.

Trap owns 15 per cent of the Orchid well, of which five per cent is a carried interest. 

Its partners are operator Summit Petroleum, which has 45 per cent, Valiant Exploration (30 per cent) and Atlantic Petroleum (10 per cent).

Orchid kicks off one of the most aggressive exploration programmes in the UK sector of the North Sea this year.

Trap will be involved with drilling of seven exploration wells targeting net risked prospective resources of approximately 14.3 million barrels of oil.

It is being carried for the majority of these wells and anticipates contributing funds to only one other well in this programme

Also underway is the Athena well which should add production of a net 2,000 barrels a day, giving it the initial cashflow to pursue and fund other opportunities.

Trap is in the process of building an impressive portfolio of exploration targets. 

Key to this is an innovative agreement with CGGVeritas, which gives Trap access to the most extensive 3D seismic database of the central North Sea.

This has allowed it to generate a number of potential targets, which have been farmed out to larger companies for a free carried interest in that particular prospect.

As production revenues kick it is expected Trap will pay to expand its initial interests in wells. In time the group is also expected to become an operator. 

The shares closed last week at 30.75 pence, well below their listing price of 43 pence of March last year.  

 

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