LONDON (SHARECAST) - Trapoil, a North Sea gas and oil explorer, has been informed by Centrica North Sea Oil that it will not drill an appraisal well on the Inverewe prospect, in which Trapoil currently has a 20 per cent working interest.
Trapoil has said it is in discussions with other partners to consider the possibility of appointing a new partner to replace Centrica in January 2013, which marks the end of the promote period of the licence.
One of the current partners on the prospect, JX Nippon Exploration and Production, is said to be supportive of drilling an appraisal well and a number of farm-in partners have already been brought in for preliminary discussions.
Under the terms of its agreement with Centrica, Trapoil will pay it a walk away fee of £1.5m, giving Trapoil an 80% working interest in Inverewe.
Trapoil's share price fell 10.13% to 17.75p by 08:49.