UK duo in North Sea asset swap

UK asset swap: Tapoil and Caithness have exchanged equity interests and revised terms covering two prospects in the UK North Sea

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Josh Lewis

 16 November 2012 08:24 GMT

UK explorer Trapoil has reached an agreement with British independent Caithness Petroleum that will see the pair exchange equity interests and vary the latter’s farm-in obligations on two North Sea Blocks.

The agreement covers licence P.1270, on Block 11/24, and licence P.1286, on Block 11/23, on the UK Continental Shelf.

Under the agreement, Caithness will transfer an additional 35% stake in the area of licence P.1270 containing the Knockinnon prospect to Trapoil, giving the latter a 70% operated stake in the area.

In exchange Caithness will no longer be obligated to drill the Knockinnon well or carry Trapoil as agreed under the previous farm-in agreement.

The new agreement will also see Trapoil transfer its entire 35% interest in the area of the licence containing…

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