Shell to drill Selene prospect ‘soon’ as it farms into Cluff’s N. Sea block
Shell to drill Selene prospect ‘soon’ as it farms into Cluff’s N. Sea block
Oil major Shell has exercised its option to farm into Cluff Natural Resources’ Southern North Sea License P2437, containing the Selene prospect that is planned for drilling “at the soonest possible opportunity.”
According to Cluff, which shared the piece of information on the farm-in on Tuesday, Shell will receive a 50 percent working interest in the license. Cluff’s data shows that the Selene prospect’s size is estimated at 291 BCF (P50 Gross Prospective Resources), and the prospect is considered low risk with an estimated Chance of Success of 39%.
Shell will pay a total consideration of $600,000 to Cluff following completion, part of which was received in February 2019.
Completion of the farm in is conditional on the entering into of a Joint Operating Agreement and obtaining regulatory consent from the Oil & Gas Authority (the “OGA”).
Application for OGA consent will be made immediately and completion is expected before the end of Q2, Cluff said. Cluff further said that on completion of the farm in, Shell has indicated its intention to commit to drill an exploration well on the Selene Prospect “at the soonest possible opportunity.”
Under the Option Agreement, Shell will pay 75% of the cost of an exploration well, including testing, subject to an aggregate cap of USD$25,000,000.
Shell will pay 75% of the cost of an exploration well, including testing…..
