LONDON – Trapoil (AIM: TRAP) has agreed to acquire a 33.33% stake in license P.685 in the UK southern North Sea from Perenco UK.
The license covers block 43/24a, otherwise known as the Trent East Terrace Area, and contains the Trent East gas discovery. It is in the Silverpit basin.
Trapoil hopes a rig can be secured within six months for the planned TET appraisal well, estimating its share of the drilling costs at about £5 million ($7.9 million). Additionally, the company will assume its share of abandonment liability for the 43/24a-3 well.
Subject to regulatory approvals, the company aims to become operator of the TET area.
TET has proven gas in Carboniferous Westphalian and Namurian reservoirs, with estimated recoverable gas thought to be in the 35-60 bcf range (991 MMcm-1.7 bcm). The new well could deliver closer to the top end, management thinks, if all the main porous gas-bearing sands flow at commercial rates.
The 43/25-3 discovery well drilled by Arco British tested from two of the five potential sands at a total of 50 MMcf/d (1.4 MMcm/d).
TET could be developed via a single well tieback to the Perenco-operated Trent platform.
Last year Trapoil took a 30% interest in adjacent block 43/20c, license P.1923, from Holywell Resources. Under the UK’s 27th seaward licensing round, the company applied for acreage close to the Trent East Terrace Area, with the bid still under review.