P1929 contains the Resolution gas field, discovered by Total in 1966, while P2304 includes the Endeavour field.
Egdon will retain 30% of both licenses. Shell will pay 85% of the costs of the acquisition and processing of a 3D seismic survey over both fields up to a certain cost threshold.
It would also cover the full costs of all studies and manpower costs up to an appraisal drilling investment decision on the licenses.
Completion of the farm-in remains conditional on approvals from the UK’s Oil & Gas Authority. Egdon and Shell plan to engage with the OGA on the nature and timing of the forward work program with a view to securing further license extensions.
Last April, Schlumberger Oilfields UK’s Competent Person’s Report assessed mean gas resources in the Zechstein carbonate Resolution reservoir at 231 bcf, and 18 bcf in Endeavour.
Mark Abbott, Egdon’s managing director, said: “We look forward to working with Shell and benefitting from their substantial worldwide operational experience and expertise, including in the development of carbonate reservoirs of this type.”