Caithness Oil Pumps First Oil from N. Sea Field
Trapoil, the independent oil and gas exploration and appraisal company focused on the UK Continental Shelf ("UKCS") region of the North Sea, announced that production has now commenced at its Lybster field situated on Block 11/24 - 3v2 (License P.1270), which is operated by Caithness Oil Limited.
The Lybster production facilities have been installed and commissioned and commercial arrangements are in place to truck and sell the oil produced to ConocoPhillips at its Immingham refinery. Lybster was put on production on May 2, 2012 and the initial truckloads are expected to arrive at the Immingham refinery today. A further announcement will be made in due course, with respect to the anticipated volumes and production profiles, once production from Lybster has stabilized.
Trapoil holds a 35 percent carried interest in the P.1270 license, which formed part of the asset portfolio of Reach Oil & Gas Limited ("Reach"), acquired by the Company in July 2011. From the date of first production, Caithness is entitled to recover all development and operating costs attributable to Trapoil's carried interest out of net revenue achieved from the sale of Trapoil's percentage interest share of the crude oil produced. Until such costs have been fully recovered, Trapoil will receive approximately 20 percent of net petroleum revenues attributable to its carried interest in Lybster.