Trapoil farms into North Sea block

Inking a deal: Trapoil has completed a farm-in agreement with Extract Petroleum for a 100% interest in 1026 square kilometres of acreage in the UK North Sea

Royalty-Free/Corbis

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Danica Newnham

 22 January 2013 09:19 GMT

London-listed Trapoil said it has completed a farm-in agreement with Extract Petroleum for acreage in the UK North Sea.

The 1026-square kilometre acreage was awarded to Trapoil in the 27th Seaward licensing round in October and comprises promote licence P1938, which covers 13 blocks.

Under the agreement, Trapoil will become the operator of the blocks and farm-in for a 100% working interest while Extract will retain a 1% royalty interest over any future production from the acreage.

Trapoil’s obligations in the deal include funding and undertaking a preliminary evaluation of the potential for production from tight reservoirs in P 1938.

The company said this assessment would be based on the acquisition of…

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