Independent oil and gas exploration firm Egdon Resources has completed the farm-in agreement with Shell, with regards to UK offshore licences P1929 and P2304.
Egdon noted that these licences contain the Resolution and Endeavour gas discoveries.
The Oil & Gas Authority (OGA) gave its approval to Shell UK to take a 70% stake in the P1929 and P2304 licences while Egdon will retain the remaining 30% stake.
According to the farm-in agreement, Shell UK must pay 85% of the costs for the acquisition and processing of a 3D seismic survey.
Under the licence terms, this work must be completed by the end of next May, Egdon said.
Egdon Resources managing director Mark Abbott said: “We are delighted to have completed the transfer of interest and operatorship to Shell in respect of these important, and potentially valuable, licences for Egdon.
“The focus will now be on progressing appraisal activity on the Resolution and Endeavour gas discoveries.
“The first part of this activity will be the acquisition of a marine 3D seismic survey during Q1 2021. We look forward to building on our good working relationship with Shell and benefiting from their substantial worldwide operational experience and expertise.”
Last November, Egdon Resources entered a farm-out exclusivity agreement regarding the P1929 and P2304 offshore licences.
In December 2017, Egdon Resources acquired the Promote Licence P2304 (UKCS Block 41/24) from Arenite Petroleum and Europa Oil & Gas relating to an area in the UK Continental Shelf.