British oil and gas company, Egdon Resources, and Shell UK Limited have completed a Farm-In Agreement for the offshore licenses P1929 and P2304, which contain the Resolution and Endeavour gas discoveries located offshore the UK, according to a press release.
The Oil and Gas Authority (OGA) has approved the transfer of a 70% interest and operatorship in both licenses as well as the Joint Operating Agreements with respect to both licenses.
Mark Abbott, Managing Director of Egdon Resources, said: “We are delighted to have completed the transfer of interest and operatorship to Shell in respect of these important, and potentially valuable, licenses for Egdon. The focus will now be on progressing appraisal activity on the Resolution and Endeavour gas discoveries.”
The new-look deal sees Egdon retain a 30% interest in the Licences. Under the terms of the Farm-In Agreement, Shell will pay 85% of the costs of the acquisition and processing of the 3D seismic survey covering both the Resolution and Endeavour gas discoveries.
The carry on acquisition costs will be capped at $5 million gross, beyond which Egdon would pay 30% of the survey costs.
Contractually speaking, the work on the two licenses needs to be completed by 31 May 2021.