Centrica agrees to take on Kew in North Sea

Trapoil has agreed to farm out 80% of its interest in the Kew gas-condensate discovery in the UK North Sea to Centrica and JX Nippon Exploration and Production (U.K.)

Offshore staff

LONDON – Trapoil has agreed to farm out 80% of its interest in the Kew gas-condensate discovery in the UK North Sea to Centrica and JX Nippon Exploration and Production (U.K.)

Under the agreement, Centrica will assume operatorship of Kew in license P.1864, block 9/24d and JX Nippon will undertake preliminary seismic-based work.

The farminees can then opt to provide Trapoil with a full carry on an appraisal well designed to fully evaluate the discovery.

If this is successful, the partners will seek to submit a field development plan to the Department of Energy and Climate Change.

The estimated carry/farm-out costs that will accrue to Trapoil will reach $15.7 million in the event of a positive well outcome.

Kew was originally awarded as a Promote License under the UK’s 26th licensing round. Trapoil assumed a 100% interest and operatorship of Kew after acquiring Reach Oil & Gas this July.

Block 9/24d is in the South Viking Graben - Kew, discovered by well 9/24b-3, is a Brae-style submarine fan play and is analogous to the Devenick field located on trend to the south.

12/01/2011

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