P1293 BLOCK 14/18B (ATHENA)

Block 14/18b is located in the North West Witch Ground Graben in the Moray Firth and contains the Athena oil field. On 21st December 2012 Trapoil completed the acquisition of a 15 per cent working interest in Athena from Dyas UK Limited.

As a consequence of the falling oil price, in mid 2015 an agreement was reached with the Athena Consortium whereby all future liabilities (including decommissioning costs) owed to the Athena Consortium will be met by Trap’s partners in the Athena Consortium and repayment will only be sought by way of any realisations stemming from Trapoil’s existing licences, being P1610 Block 13/23a (Magnolia), P1666 Block 30/11c (Romeo), P1889 Blocks 12/26b & 27 (Niobe), P1989 Blocks 14/11, 12 & 16 (Homer) and P2170 Blocks 20/5b & 21/1d (Cortina).

In summary, 60 per cent. of any petroleum sales or net disposal proceeds from these licences will be passed over to the Athena Consortium as well as all future revenue generated from our interest in the Athena Oil Field and when 125 per cent. of the outstanding debt obligation has been met, no further amounts will be due to the Athena Consortium.

Should Trapoil not have repaid the outstanding debt obligation by the time the Athena field is fully decommissioned, the remaining debt will be written off by the Athena Consortium. With respect to the future decommissioning liabilities associated with the Athena field, Trapoil’s share of such liabilities is to be satisfied from the cash already held in trust and put in place to cover such costs. In the event of any potential insolvency, or similar proceedings, being commenced by Trapoil in the future, the rights of the Athena Consortium will revert to those in place prior to this settlement agreement.

Production ceased in January 2016 following which the FPSO BW Athena came off station on 14th February 2016. Further to the approval by the OGA of the proposed Decommissioning Programme, Phase 1 has now been completed.