Farm-Out of Kew Asset to Centrica and JX Nippon

Trap Oil Group plc

("Trapoil" or the "Company")

Farm-out of Kew asset

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 that it has successfully farmed out, subject to Department of Energy and Climate Change ("DECC") approval, 80% of its working interest in its Kew asset (P.1864, Block 9/24d) ("Kew") to Centrica North Sea Oil Limited ("Centrica") (60%) and JX Nippon Exploration and Production (U.K.) Limited ("JX Nippon") (20%) (the "Farm-out").

As part of the Farm-out agreement, Centrica (who will assume operatorship) and JX Nippon will undertake preliminary seismic based work, following which they will, at their election, provide Trapoil with a full carry on an appraisal well designed to fully evaluate the Kew discovery. If the appraisal well proves to be successful, the P.1864 Group will seek to complete and submit a Field Development Plan to DECC.

In order to secure the Farm-out, Centrica and JX Nippon have together made a cash payment of £2.75 million to Trapoil. Following completion of the preliminary seismic-based work, should Centrica and JX Nippon elect not to drill an appraisal well and undertake the abovementioned programme, they will be required to make an additional payment to Trapoil.

The estimated carry and farm out costs that Trapoil will receive ranges from £4.75 million, should Centrica and JX Nippon elect not to drill the appraisal well, to £10 million if a positive election is made. Trapoil estimated £17 million of carried activity and farm in income would be gained following the acquisition of Reach Oil and Gas Limited. The successful farm out of Kew demonstrates the considerable value in the Reach portfolio.

Kew was awarded as a Promote Licence in DECC's 26th Licensing Round. Trapoil acquired a 100% working interest and operatorship of Kew following the successful acquisition of Reach Oil & Gas Limited in July 2011.

Block 9/24d is located in the South Viking Graben and contains the undeveloped gas-condensate discovery, Kew, discovered by well 9/24b-3. Kew is a Brae style submarine fan play and is analogous to the Devenick field located on trend to the south.

Mark Groves Gidney, Chief Executive Officer of Trapoil, commented:

"We are delighted to have concluded this Farm out of Kew. The opportunity to work with Centrica and JX Nippon on this exciting appraisal project means that Trapoil will be able to see Kew through to development, without the requirement for the financing of what will be expensive wells. In addition, the upfront cash payments received under the terms of the Farm-out provide the Company with additional cash resources."

Martin David, Technical Director of the Company, has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person under the AIM Rules. Mr David holds a BSc degree in Geology from the University of London and has over 37 years' experience in the oil industry.

Enquiries:

**ENDS**

Notes to editors:

·; The Trapoil group was created in 2008 by a team of experienced industry executives with a broad range of oil and gas technical, operational and financial expertise and professional skills.

·; Trapoil has developed long term relationships with key oil industry partners, notably Suncor Energy Incorporated, Norwegian Energy Company ASA and Challenger Minerals (North Sea) Limited, and major suppliers and consultants including CGGVeritas Services (UK) Limited ("CGGVeritas"), Applied Drilling Technology International and Exploration Geosciences Limited.

·; The Company utilises a research-led, knowledge-based approach to identify and deliver promising exploration and appraisal opportunities, and to this end has secured extensive long term access to CGGVeritas' state of the art 3D seismic database over the majority of the Central North Sea area on negotiated terms. CGGVeritas is a leading pure-play geophysical services and equipment provider. Access to such 3D seismic data serves to strengthen the group's ability to create opportunities on both open and held acreage in the UKCS.