Royal Dutch Shell Plc (NYSE: RDS.A) bought stakes and options in gas licenses in the southern British North Sea estimated to contain a total of 190 million barrels of oil equivalent (boe) from Cluff Natural Resources Plc, Cluff said Feb. 8.
Under the terms of a farm-out agreement, Shell will buy 70% of the P2252 license and will become its operator. Meanwhile, Cluff will retain a 30% nonoperated interest in the license.
The P2252 license contains the Pensacola prospect, which is estimated to contain unaudited mean gas in place of 566 billion cubic feet (Bcf) or the equivalent of roughly 100 million boe.
The agreed work program for P2252 includes the shooting of not less than 400 sq km of new broadband 3-D seismic data over the Pensacola prospect in the summer of 2019, subsequent processing of new and existing seismic data and subsurface studies required to support a well investment decision before the end of 2020.
Cluff also granted Shell the option to acquire a 50% working interest in its P2437 license, which contains the Selene prospect.
The Selene prospect is estimated to contain unaudited mean gas in place of 509 Bcf or an equivalent of roughly 90 million boe. It is located next to the Shell-operated infrastructure that links to the Barque gas field and exports gas into the Bacton Gas Terminal.
The deal was advised by Gneiss Energy and Allenby Capital Ltd.
Reuters contributed to this article.
Recommended Reading
ONGC’s M Field Starts Production in Bay of Bengal
2024-01-09 - ONGC’s M Field represents the second phase of the larger 98/2 Block development project which is expected to reach peak production of 45,000 bbl/d and 10 MMcm/d.
Prairie Operating Acquires More D-J Basin Assets for $94.5MM
2024-01-15 - Houston-based Prairie Operating Co. is scaling its D-J Basin footprint with a $94.5 million acquisition of Nickel Road Operating LLC.
Beach Town Corpus Christi Grows into America’s Top Energy Port
2024-01-16 - The Port of Corpus Christi is the U.S.’ largest energy export gateway and in terms of total revenue tonnage as increased midstream investments have opened export markets for the prolific Permian Basin.
Tech Trends: Halliburton’s Carbon Capturing Cement Solution
2024-02-20 - Halliburton’s new CorrosaLock cement solution provides chemical resistance to CO2 and minimizes the impact of cyclic loading on the cement barrier.
To Dawson: EOG, SM Energy, More Aim to Push Midland Heat Map North
2024-02-22 - SM Energy joined Birch Operations, EOG Resources and Callon Petroleum in applying the newest D&C intel to areas north of Midland and Martin counties.