16th Oct 2014 14:14
LONDON (Alliance News) - Trap Oil Group PLC Thursday said it has received an updated report on the current estimates of the Athena decommissioning costs by Ithaca Energy Inc, operator of the Athena Field in the North Sea, and costs are now expected to be more than previously expected.
The oil and gas exploration and production company, with operations in the UK North Sea, said the report estimates the Athena decommissions costs to be around GBP60 million, a majority of which relates to the well abandonment. It said GBP9.0 million of these costs will be net to Trap Oil.
"This represents an increase of GBP24.0 million from the 2010 estimate of GBP36.0 million, of which approximately GBP5.4 million was net to Trapoil," the company said.
It said that all costs have been updated to reflect current rig rates and expected utilisation.
Trap Oil shares were down 11% at 4.45 pence Thursday afternoon. Ithaca Energy shares were down 2.6% at 75.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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