Offshore staff
LONDON – Trap Oil has agreed to potentially acquire a 33.33% interest from Perenco in a gas discovery in the UK southern North Sea.
The discovery is in license P.685 (block 43/24a). If the transaction goes through, Trap Oil would drill an appraisal well as operator in 2013. The company would provide a letter of credit to cover its share of abandonment costs.
In connection with this farm-in, the company would also take a 30% interest from Holywell in adjacent blocks 43/24b and 43/20c, where the license partnership could be joined by a major utility to build a core area. These blocks are known as the Trent East Terrace (TET).
TET contains proven gas in the Carboniferous Westphalian and Namurian reservoirs, with recoverable resources estimated at 35-60 bcf. Drilling of a new appraisal well could lift recovery closer to 60 bcf.
If the main porous gas-bearing sands flow at commercial rates, Trap Oil adds, there could be strong additional potential in the surrounding exploration acreage.
The plan originally envisaged for TET was a single well tieback to the Perenco-operated Trent platform.
Elsewhere in the North Sea, Trap Oil will participate in six wells, all of which have rigs secured apart from the two Caithness operated wells, where preparations are progressing for drilling at year-end.
The next exploration well is expected to spud in September on the Suncor-operated Romeo prospect in license P.1666, block 30/11c, where Trap Oil has a 12.5% carried interest. The same rig will then drill the Scotney well for Suncor/Trap Oil in license P.1658, block 20/5b.
Drilling of the Dana petroleum-operated Magnolia prospect in license P.1610, block 13/23a, where Trap Oil has a 10% carried interest, is scheduled to spud this fall. The delay on Magnolia will have a knock-on effect on drilling of Crazy Horse, as the same rig has been contracted for both wells.
6/7/2012
