Trap snares Reach

Edam good deal: Trap snaps up Reach

By Eoin O'Cinneide

 04 July 2011 07:30 GMT

British independent Trap Oil is increasing its footprint in the UK Continental Shelf with the acquisition of compatriot company Reach Oil & Gas.

The London-listed company has spent £30 million ($48.37 million) in a cash-plus-shares deal for Reach.

Mayfair-based Trap is stumping up £20 million in cash for the deal which will also see over 23 million ordinary shares swap hands at around £0.43 a piece, or £10 million in total.

In return Trap is getting its hands on Reach’s interests in 14 exploration licences governing 24 blocks and part blocks.

The purchase “more than doubles the size of Trapoil's existing exploration portfolio and near term drilling activity, including increasing the company's interest to 15% in the…

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