Shell U.K. Ltd. has gained a 50% interest in the license containing the Selene prospect in the North Sea after wrapping up a farm-in deal with Cluff Natural Resources Plc.
Cluff said Aug. 13 it will retain a 50% interest in License P2437, where Shell intends to drill an exploration at the prospect “at the soonest possible opportunity.”
The Selene prospect, which Cluff said is highly analogous with nearby fields including the Shell-operated Barque gas field, is believed to contain prospective resource of an estimated 291 billion cubic feet.
“The U.K.’s Southern Gas Basin is coming under increased focus currently with several highly material exploration campaigns ongoing around our acreage,” Cluff’s CEO Graham Swindells said in the release. “As such, we are delighted to have formally completed this farm out agreement with a committed partner such as Shell, to de-risk and ultimately drill the high-impact Selene prospect.”
Cluff said it will now receive the remaining US$300,000 of the $600,000 initial consideration from Shell within 30 days of the deal’s completion.
In addition, once an investment decision is made on the well, Shell will pay for 75% of the cost for the exploration well, including testing, subject to an aggregate cap of $25 million, the release said.
License P2437 is adjacent to Shell-operated infrastructure.
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The field has an output capacity of 470,000 barrels per day (bbl/d), which is close to a quarter of Norway’s oil output.