Shell has taken an option to farm-in to a 90million barrel North Sea prospect owned by Cluff Natural Resources (CLNR).
The £461,000 deal will see Shell become 50% owner of the P2437 licence in the Southern North Sea, which holds the Selene discovery holding 90million barrels of oil equivalent.
It comes just two months after Shell agreed a deal for another Cluff licence, with that deal including the option to also farm into Selene,
Under the agreement, Shell will pay 75% of the exploration costs up to £19.2m for Selene, if a decision is taken to drill.
The deal is subject to approval of a joint operating agreement from the Oil and Gas Authority, with completion expected before the end of the second quarter.
Selene lies around 12miles from the Barque gas field which feeds into the Bacton gas processing plant.
In February, Shell agreed to farm-in to CLNR’s P2252 licence containing the 100million-barrel Penascola prospect.
Cluff’s CEO Graham Swindells said: “We are delighted to be able to continue to build on our relationship with Shell in the Southern North Sea.
“Shell’s continuing interest in the Company’s portfolio of Southern North Sea prospects is a testament to our licensing strategy and the ability of our technical team to identify, evaluate and communicate the potential of overlooked opportunities within the UK’s mature basins.
“The Company now has direct visibility over the future drilling activity of two prospects containing gross P50 Resources of c. 600 BCF of gas.
“We look forward to working closely with Shell over the coming months to progress the various workstreams to support the well investment decision.”
CLNR said a number of other prospects have also been identified within the block and will be evaluated in due course.