There was an interesting report on the Herald's website yesterday, which adds background to the recent news from Trap Oil.
"Couple strike it rich with £30m sale of oil venture
by MARK WILLIAMSON
A HUSBAND and wife have ...sold their Banchory-based Reach Oil and Gas to Trap Oil....The company was ....set up in 2002 by the couple, who had previously worked in exploration and appraisal for prominent oil and gas firms.......they bid for low-cost licences .....persuade others to shoulder the cost of drilling ......now have 14 exploration licences ...covering ...2000km2 ...Reach ...portfolio would be taken forward by Trap Oil, a London-based firm which has paid what looks like a high price for the portfolio ...which Reach had spent ...nine years ...amassing.
The licences were issued under the Promote Scheme ....with a skeleton staff ....managed to convince ....significant oil and gas firms to ...fund ...wells in exchange for ...a stake in licences. Partners include ....Centrica and BG.
....Newman and ...Davies developed Reach from their own resources. .......in 2006 ....it found oil with a well drilled in the Moray Firth, with Petro-Canada. Reach’s interests now include the Lybster field ....which is under development. Trap said Reach has three discoveries awaiting near-term development and “a number of near-term drillable exploration opportunities”.
....Trap Oil ....said the projects ....offered attractive returns ....Trap Oil wanted to buy more North Sea assets and had made offers for two targets which had production. He declined to give details. Directors have no plans to move into other areas. ....
