UK North Sea-focused junior Trapoil announced Friday that it has agreed to buy one-third of the Trent East Terrace (TET) Area license in the southern North Sea from Perenco UK.
In return for its 33.33-percent share in Block 43.24a, where the TET Area is located, Trapoil has committed to securing a drilling rig within six months for a planned appraisal well. Trapoil’s share of the drilling costs is expected to be approximately $8 million.
It is also intended that Trapoil will be the operator of the TET Area, subject to approval from the Department of Energy and Climate Change.
TET has proven gas in the Carboniferous Westphalian and Namurian reservoirs, with gross recoverable gas resources estimated by Trapoil's management to be between 35 and 60 billion cubic feet. Trapoil's management believes that the proposed drilling of a new appraisal well could potentially recover closer to 60 bcf if all of the main porous gas-bearing sands flow at commercial rates. The existing 43/25-3 discovery well drilled by Arco British Limited flow tested from two of the five potential sands at an aggregate rate of 50 million cubic feet of gas per day.
Trapoil CEO Mark Groves Gidney commented in a company statement:
"The farm-in to the TET asset enables the group to secure operatorship, subject to DECC's approval, and therefore exercise greater control over the scheduling of our work program. In addition, this relatively straight forward gas development project, in conjunction with the promising exploration potential in the adjacent acreage, offers the prospect of attractive cash flow for the group in the medium term."
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