Trapoil and the Romeo Oilfield discovery
Trapoil has entered into an agreement with Prostar Capital Limited, a global private equity firm, which will enable Trapoil to participate in the consolidation of the Romeo discovery, a high value asset within the North Sea. Prostar’s management believes that there is considerable value in the North Sea, and has established a substantial fund targeted at acquiring undervalued assets and companies in the region.
The Romeo discovery (drilled in 2012) in which Trapoil now holds a controlling position, has SIGNIFICANT POTENTIAL in the event a further planned high impact well is drilled. TOTAL OIL controls, with 100% equity, the adjacent block to the west that contains approximately 20 per cent. of Romeo and has a lookalike structure named Alfa (or Scarinish). In Q4 2013, Trapoil farmed out its Valleys asset, located near the Forties field, to TOTAL OIL and in return negotiated, inter alia, an option to acquire up to a 35 per cent. equity interest in Alfa. This option has now been extended through to late July 2014. The Company believes this option to be important as drilling information from the Alfa prospect will be key to unlocking the potential in the Romeo discovery. Alfa is expected to be drilled in 2015 and is a commitment to DECC.