22nd Jan 2014 10:35
LONDON (Alliance News) - Trap Oil PLC Wednesday said it has achieved a licence extension and is looking at further opportunities in the upcoming UK licensing round.
The oil and gas exploration and production company, with operations in the UK North Sea, said it is looking to secure opportunities to advance its portfolio during the upcoming UK Department of Energy and Climate Change's licensing round, expected to take place this quarter.
The company has recently become a shareholder in IGas Energy PLC, which holds shale gas licences onshore UK, and may be looking to acquire another unconventional oil play as the UK government attempts to push for the fracking process to become commonplace in the country.
Shale gas hydraulic fracturing, otherwise known as fracking, involves extracting gas trapped in shale by pumping in pressurised water and chemicals. In the US, fuel prices have falling sharply as fracking has become commonplace across such states as North Dakota and Mississippi.
However, so far in Europe fracking has had mixed results, sometimes meeting strong local opposition or proving unreliable. In the UK, there have been major protests against the method, which critics fear will pollute water tables in rural areas and may cause small earthquakes.
The company said it has also managed to extend its 90% owned and operated UK P1267 licence until December 21, 2014, and the company is attempting to secure a partner for the site.
The company also noted that the Athena Oil Field, which had some technical issues in 2013, is currently producing at the lower rate of 7,000 barrels of oil per day and the company is continuing to decide on an appropriate course of action to deal with the pump failure at the site.
The company said in September 2013 that Athena production levels are unlikely to be restored until the second quarter of 2014.
Trap Oil shares were up 5.9% to 9.66 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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