Trapoil Farms Out UK Kew Asset to Centrica and JX Nippon

UK-based Trapoil Group plc has announced that it has farmed out an 80 per cent stake of its working interest in the Kew discovery to two companies, Centrica North Sea Oil Limited and JX Nippon Exploration and Production Limited (UK).

Centrica will take 60 per cent of the working interest, with JX Nippon taking the remaining 20 per cent. Centrica will assume the role of operator as part of the deal.

The 80 per cent Kew stakes, relating to the Kew asset in Block 9/24d of the UK Continental Shelf in the North Sea, will change hands for an initial cash cost of £2.75 million. If Centrica and JX Nippon decide against drilling an appraisal well, following preliminary seismic based work, they will be required to pay an extra £2 million payment to Trapoil.

Trapoil acquired their 100 per cent stake in Kew as part of the company's acquisition of Reach Oil and Gas in July of this year.

The Kew asset is located in the South Viking Graben in the North Sea and contains the undeveloped gas-condensate discovery, Kew, discovered by well 9/24b-3.