ODIHAM, UK – Britain’s Oil & Gas Authority has approved extension terms and amend work obligations for two UK North Sea licenses held by Egdon Resources.
This clears the way for Shell to complete a conditional agreement to farm into licenses P1929 and P2304 as operator.
The initial term of both permits now runs to May 31, 2024, subject to fulfilling the following commitments:
1.) By May 31, 2021, acquiring 400 sq km (154 sq mi) of 3D seismic or relinquishing the licenses
2.) By Nov. 30, 2022, agreeing to drill one well in either license to a depth of 1,700 m TVDss, or 75 m (246 ft) below the base Permian unconformity; or again relinquishing the concessions.
Assuming the transaction goes through, Egdon will retain a 30% interest with Shell covering 85% of the costs of the acquisition and processing of the 3D survey over the Resolution and Endeavour gas discoveries.
Shell will also pay 100% of all studies and manpower costs through the well investment decision.
Mark Abbott, managing director of Egdon Resources, said: “We look forward to building on our close working relationship with Shell and benefitting from their substantial worldwide operational experience and expertise; notably the development of carbonate reservoirs characteristic of the Resolution and Endeavour discoveries.”