The share price of one of our favoured North Sea exploration plays - Trap Oil - was marked down by around 5 per cent after Centrica North Sea Oil elected not to drill an appraisal well on the Inverewe prospect in which Trap currently holds a 20 per cent working interest.
IC TIP:
Buy
at
18.75p
However, all is not lost. Trap remains in discussions with its other partner in the prospect, JX Nippon Exploration and Production, which is keen to support an appraisal programme, subject to the involvement of a new partner to replace Centrica as operator by the early part of January. When that happens, Centrica will pay Trap a £1.5m 'walk away' fee.
