Caithness Petroleum Limited has completed its agreement on 30 January 2013 with Trap Oil Limited ('Trap'), a wholly owned subsidiary of Trap Oil Group plc, to revise the equity interests and carried work obligations relating to shared licences P1270 (Block 11/24) and P1286 (Block 11/23) in the UK Inner Moray Firth.

In addition, Caithness has also recently completed the sale of its wholly owned subsidiary, Cabre Maroc Limited ('Cabre Maroc'), to Gulfsands Petroleum plc ('Gulfsands'). Under the agreement with Gulfsands, Caithness retains a carried interest in the onshore Fès and Taounate permits, on which a substantial work programme including seismic acquisition and 3 new exploration wells is to be completed.

UK North Sea

Caithness and Trap have agreed to the following new terms:

• Caithness Oil Limited ('Caithness Oil'), the wholly owned Caithness subsidiary which holds its UK North Sea licence interests, acquires 100% of the working interest and retains operatorship in the highly prospective Forse prospect; • Caithness Oil returns to Trap the 35% interest that it acquired in the Knockinnon field under a farm-in agreement between the parties and no longer has an obligation to carry Trap on the drilling of a future well on this field. Caithness retains its original 30% working interest in Knockinnon and can participate in a well if drilled by Trap; • Caithness continues to receive 80% of revenue from the production of the Lybster field until it recovers its historical capital expenditure

Tags: Caithness Petroleum Limited