Business
Completion of Farm-out of Licence to Shell U.K.
Completion of Farm-out of Licence to Shell U.K..
About this update from Deltic Energy Plc
[{"type":"text","content":"\n \nRNS Number : 7945I Cluff Natural Resources plc 13 August 2019 \n\n \n13 August 2019\n \n \nCluff Natural Resources Plc ('Cluff' or 'the Company')\n \nCompletion of Farm-out of Licence P2437 to Shell U.K. Limited\n \nCluff Natural Resources Plc, the AIM quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern and Central North Sea, is pleased to announce that it has received the required regulatory consent from the Oil and Gas Authority ('OGA') in relation to the farm-out of Licence P2437 to Shell U.K. Limited (\"Shell\") and that the farm out has been completed. \n \nP2437 - Farm-out Highlights\n \n· Following receipt of OGA approval and signing of the Joint Operating Agreement, Shell have been assigned a 50 per cent. working interest in Licence P2437 which contains the Selene prospect. \n \n· The Company will now receive the balance of the USD$600,000 initial consideration (being USD$300,000) from Shell within 30 days of completion\n \n· Cluff retains a 50 per cent. working interest in Licence P2437 and will act as Licence Administrator until a well investment decision in made. \n \n· Shell has indicated its intention to commit to drill an exploration well on the Selene Prospect at the soonest possible opportunity.\n \n· Once a well investment decision is made, Shell will pay for 75% of the cost of an exploration well, including testing, subject to an aggregate cap of USD$25,000,000\n \n· Licence P2437 is located adjacent to existing Shell operated infrastructure and contains the Selene Prospect which is estimated to contain a P50 Prospective Resource of 291 BCF (gross). \n \nCommenting, Cluff's Chief Executive Graham Swindells said: \n \n\"The UK's Southern Gas Basin is coming under increased focus currently with several highly material exploration campaigns ongoing around our acreage. As such, we are delighted to have formally completed this farm out agreement with a committed partner such as Shell, to de-risk and ultimately drill the high-impact Selene prospect.\"\n \nBackground - The Selene Prospect\n \n· Licence P243...