Trap Oil Looks at Selling Some North Sea Assets to Survive

Reuters

LONDON, June 12 (Reuters) – Small North Sea oil and gas operator Trap Oil is in talks to sell some of its assets to raise funds, it said, as a steep drop in oil prices and operational restrictions due to bad weather.

"The company's directors ... are continuing to urgently assess a number of potential funding sources," Trap Oil said in a statement.

These include talks on selling some of the company's North Sea licence interests, the company said, adding it was discussing options with its creditors, shareholders and potential investors.

Shares in the company were down 8.1 percent at 1006 GMT.

The North Sea oil producer said in April it was close to insolvency after reporting a 44.4 million pound pre-tax loss for 2014. Some of the company's output was cut due to severe weather conditions and a number of its assets were written off because of the sharp decline in oil prices.

As it tries to find a funding solution, Trap Oil only has enough funds to finance its activities until early July, it said on Friday.

Trap Oil's assets include a 10 percent stake in the producing Athena oil field and interests in various North Sea exploration licences.

(Reporting by Karolin Schaps. Editing by Jane Merriman)

 

Copyright 2017 Thomson Reuters. Click for Restrictions.

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