Egdon Closes North Sea Farm-out to Shell
London-listed Egdon Resources has completed the farm-out of 70% interests in two UK North Sea gas discoveries to Shell, it said on August 25.
The deal, announced in January, gives Shell operatorship of licences P1929 and P2304 containing the Resolution and Endeavour gas discoveries. In return, the Anglo-Dutch major will cover 85% of the cost of a 3D seismic survey, due for completion by the end of May next year, up to a $5mn gross cap. After this threshold is reached, Shell's share of costs will fall to 70%.
The major will also pay for 100% of study and manpower costs up to an investment decision on drilling a well. The partners have until the end of November 2022 to commit to drilling, under licence extension terms agreed with the Oil and Gas Authority (OGA) in June.
The Resolution field, first discovered in 1966, has been assessed to hold 231bn ft3 of gas in contingent resources. Endeavour holds a further 18bn ft3.