Trap Oil gives Update re Athena Decommissioning Costs
Trapoil (AIM: TRAP), the independent oil and gas exploration, appraisal and production company focused on the UK Continental Shelf (“UKCS”) region of the North Sea announces that it has received an updated report detailing current estimates of the Athena decommissioning costs by Ithaca Energy Inc. (“Ithaca”), the operator of the Athena Field (the “Report”).
The Report, which has been independently prepared by Petrex Ltd on behalf of the partnership, estimates that the Athena decommissioning costs will be approximately £60.0 million (approximately £9.0 net to Trapoil), the majority of which relate to the well abandonment. This represents an increase of £24.0 million from the 2010 estimate of £36.0 million (of which approximately £5.4 million was net to Trapoil). All costs have been updated to reflect current rig rates and expected utilisation.