Trapoil’s swap deal with Caithness Oil in prospect

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Trapoil, the exploration group, has announced a deal which will give it majority control of the Knockinnon prospect in the North Sea.

Under the equity swap arrangement with Caithness Oil, Trapoil will double its stake in the prospect to 70 per cent.

Trapoil estimates Knockinnon, discovered in 2000, has recoverable resources of more than six million barrels of oil and is a “near-term development opportunity”.

In return, Trapoil is transferring its 35 per cent equity interest in the Forse prospect to Caithness but will have the right to acquire a 20 per cent working interest on completion of the first well.

Chief executive Mark Groves Gidney said the agreements would “provide greater clarity to Trap’s drilling campaign”.