Offshore staff
LONDON – Cluff Natural Resources has entered into a conditional farm-out agreement with Shell U.K. concerning two UK southern North Sea licenses.
Shell will take a 70% operated stake from Cluff in license P2252 in return for covering 100% of the costs of an agreed forward work program.
This will include acquiring no less than 400 sq km (154 sq mi) of new broadband 3D seismic data over the 566-bcf Pensacola prospect during 3Q 2019, followed by processing of the new and existing seismic data and subsurface studies to support a well investment decision before the end of 2020.
Following that decision, both parties will bear the costs according to their 70-30% interests.
Shell also has the option to acquire a 50% stake in license P2437 by the end of April. Cluff would retain a 50% operated interest until the partners take a well investment decision, with Shell again paying all costs to date.
If they do commit to drill an exploration well Shell would pay 75% of the costs, including a well test, up to a total of $25 million.
The license contains the 509-bcf Selene prospect and is adjacent to Shell-operated infrastructure associated with the producing Barque gas field.
Both deals remain subject to approval by the UK’s Oil and Gas Authority.
02/14/2019
