LONDON – Trapoil has agreed to acquire UK North Sea specialist Reach Oil & Gas for $48 million.
Reach's subsidiaries Reach Exploration (UK) and Reach Petroleum hold mostly carried interests in a total of 14 exploration licenses, covering 24 UK blocks and part-blocks.
The portfolio includes one field under development (Lybster), three closing on development (Knockinnon, Surprise, and Nutmeg), and near-term exploration drilling prospects (Orchid, Whaligoe, String of Pearls, Minos, Lacewing, and Kew).
Following completion of the acquisition, Trapoil will have the option to farm-out interests in some of the assets acquired and increase its equity in others. In addition, Reach has applications for three UK 26th Round licenses still under review by the Department of Energy and Climate Change.