Wick Harbour is perfectly situated to assist with various Oil and Gas related industries. Below you'll find the latest announcements of interest to us.
Trap Oil Group plc ("Trapoil" or the "Company")
Update re Lybster Well (Summer 2011)
Trapoil (AIM: TRAP), the independent oil and gas exploration and appraisal company focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to announce an operational update with respect to its Lybster well situated on Block 11/24 - 3v2 (licenceP.1270) ("Lybster"), which is operated by Caithness Oil Limited ("Caithness").
Testing operations have recently been concluded on Lybster, which flow tested at rates up to 1,900 barrels of oil per day ("bopd") of 38 degree API (Munich: A0J2Q1 - news) oil through a variable choke set at 36/64th. This testing formed part of a sample collection and assay programme aimed at establishing the suitability of the crude oil for export facilities later this year.
The well has now been shut-in pending completion of surface facilities prior to commencing production, which is currently anticipated in early 2012. Trapoil holds a 35 per cent. carried interest in the P.1270 licence which formed part of the asset portfolio of Reach Oil ∓ Gas Limited ("Reach"), acquired by the Company in July 2011. From the date of first production, Caithness is entitled to recover all development and operating costs attributable to Trapoil's carried interest out of net revenue achieved from the sale of Trapoil's percentage interest share of the crude oil produced. Accordingly, until such costs have been fully recovered, Trapoil will receive approximately 20 per cent. of net petroleum revenues attributable to its carried interest in Lybster.
Mark Groves Gidney, Chief Executive Officer of Trapoil, commented:
"We are very pleased with the results from this well, which are in line with our expectations, and look forward to the commencement of commercial production early next year. Drilling of the Lybster well was still ongoing at the time of our acquisition of Reach and we believe these test results serve to validate the consideration paid. We anticipate realising further value from the Reach asset portfolio in the near term.
Subsea 7 Activities Update
Already during 2011 we have imported 11 subsea towheads for delivery to Wester Site, amongst them being one of the heaviest lifts to date on the North River Pier when two 500 tonne mobiles handled a tandem lift of nearly 200 tonnes.
Coupled with 5 cargoes of steel pipe, this enhances our portfolio of support for Wester Site where 65 Subsea Pipeline Bundles have been launched over the last thirty years.