Trapoil buys Summit's Orchid share

Orchid: Trapoil has entered a sales and purchase agreement to acquire all of Summit Petroleum's 45% stake in the Ochid oil discovery in the UK North Sea

Scanpix/AP

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Danica Newnham

 12 March 2013 08:11 GMT

UK-listed Trapoil has confirmed it has entered into a definitive sale and purchase agreement to acquire an additional 45% interest in Block 29/1c, containing the Orchid oil discovery in the UK Central North Sea.

The company initially signed a non-binding heads of terms agreement with the block operator, Summit Petroleum, in early January.

Under the deal, Trapoil is acquiring Summit’s entire 45% stake and will take over as operator of the block for a cash payment of GBP1.5 million ($2.23 million).

Upon completion of the transaction, Trapoil will hold a 60% stake in Block 29/1c, in partnership with Valiant Exploration on 30% and Atlantic Petroleum UK on 10%.

The Orchid oil discovery was made after a 50-foot oil pay zone was encountered in the Orchid exploration well in…

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