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.”

Map source: Cluff Natural Resources
Selene Prospect Map/ Source: Cluff Natural Resources

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.

Cluff’s Chief Executive Graham Swindells said: “We are delighted to be able to continue to build on our relationship with Shell in the Southern North Sea following confirmation that they will now partner with us on Licence P2347, in addition to our existing partnership on Licence P2252, containing the 309 BCF (P50 Gross Prospective Resources) Pensacola prospect (Cluff, 30% working interest).

We look forward to working closely with Shell over the coming months to progress the various workstreams to support the well investment decision.”

To remind,  Cluff Natural in February entered into a binding, conditional farm-out agreement and a three-month exclusive option with Shell in relation to the company’s Southern North Sea Licenses P2252 and P2437, respectively.


Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Offshore Energy Today, established in 2010, is read by over 10,000 industry professionals daily. We had nearly 9 million page views in 2018, with 2.4 million new users. This makes us one of the world’s most attractive online platforms in the space of offshore oil and gas and allows our partners to get maximum exposure for their online campaigns. 

If you’re interested in showcasing your company, product or technology on Offshore Energy Today contact our marketing manager Mirza Duran for advertising options.

Share this article

Follow Offshore Energy Today

Events>

<< Aug 2019 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 1

OEE Conference & Exhibition 2019

OEE2019 is organised by Ocean Energy Europe, the industry association representing ocean energy in Europe.

read more >

Shanghai Int Petrochemical and Offshore Oil & Gas and Chemical Industry Technology and Equipment Exhibition 2019

cippe Shanghai has attracts both…

read more >

OWI LATAM 2019

Over the two-day conference, 25+ expert speakers will share exclusive insight on how to develop an integrity, production and P&A strategy…

read more >

Uganda International Oil and Gas Summit 2019

Uganda International Oil & Gas Summit will once again examine the industry’s developments…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply