The acquisition closed following the receipt of Oil and Gas Authority (OGA) approval.
In February 2019, Shell signed the agreement to acquire the North Sea licence. Under the terms of the agreement, Shell also assumed the operatorship of the Licence P2252, while Cluff will continue to hold the remaining 30% non-operated interest.
Shell will pay 100% of the costs of an agreed forward work programme to the earlier of 31 December 2020 or the date on which a well investment decision is made. The agreed work programme encompasses acquisition of a minimum of 400km2 of new broadband 3D seismic data over the Pensacola prospect this year.
The Pensacola prospect is located within the Licence P2252 and is expected to host an unaudited mean 566 billion cubic feet of gas initially in place (equivalent to approximately 100 million barrels of oil equivalent).
Shell has already contracted Shearwater GeoServices to carry out the seismic survey. Subsequent processing of the acquired data and sub-surface studies will help to take well investment decision before the end of 2020.
Cluff Natural Resources chief executive Graham Swindells said: “We are delighted to be able to announce the completion of the farm-out of Licence P2252 to Shell and look forward to the company’s involvement in the upcoming seismic operations during the summer.”
Following the well investment decision, all costs incurred at P2252 will be shared between Shell and Cluff with respect to their proportionate working interest in the licence.