From Trapoil Website.
estimate gross unaudited recoverable reserves from the core Athena
development area to be c.14.3mmbbls, with upside in the core area and
further to the north. The Company recognises that this unaudited
management estimate is significantly lower than estimates published by
third parties for this asset.
effective acquisition cost for Trapoil is approximately US$21/bb (for
fully developed producing reserves (based on the estimated effective
acquisition cost of £26.9 million, the Company's 15 per cent. share of
unaudited gross recoverable reserves as at 31 October 2012 of
2.0mmbbls), with a short anticipated payback. First production is
currently anticipated in Q2 2012.
acquisition will be transformational, cash generative and, together
with tax synergies and anticipated hedging, will generate enhanced
returns to Trapoil. First production from Athena is currently
anticipated in early Q2 2012.
acquisition yields good projected returns in excess of 50 per cent.
when tax synergies and anticipated hedging activity are taken into
management's anticipate an initial production rate of approximately
10,000bopd, rising to 18,000bopd (2,700bopd net to Trapoil) once fully
· Trapoil is not exposed to costs up to the current anticipated development cost. The Company's net abandonment liability is anticipated to be £5.5 million.