Gneiss Energy is pleased to note that Cluff Natural Resources (CNR) has completed the farm-out of its Southern North Sea Licence P2437 to Shell.
Gneiss acted as commercial adviser to CNR on the original farm-out agreement, which was agreed in February.
Shell acquired a 50% working interest in P2437 following receipt of approval from the OGA and signing of the Joint Operating Agreement. The licence includes Selene prospect, which is estimated to contain a P50 Prospective Resource of 291 BCF (gross).
CNR will now receive the balance of the US$600,000 initial consideration (US$300,000) from Shell within 30 days of completion and will retain a 50% working interest P2437.
Shell has indicated its intention to commit to drill an exploration well on the Selene prospect at the earliest possible opportunity, while CNR will act as licence administrator until a well investment decision is made.
Once that occurs, Shell will pay for 75% of the cost of an exploration well, including testing, subject to an aggregate cap of US$25,000,000.