Royal Dutch Shell Plc (NYSE: RDS.A) bought stakes and options in gas licenses in the southern British North Sea estimated to contain a total of 190 million barrels of oil equivalent (boe) from Cluff Natural Resources Plc, Cluff said Feb. 8.

Under the terms of a farm-out agreement, Shell will buy 70% of the P2252 license and will become its operator. Meanwhile, Cluff will retain a 30% nonoperated interest in the license.

The P2252 license contains the Pensacola prospect, which is estimated to contain unaudited mean gas in place of 566 billion cubic feet (Bcf) or the equivalent of roughly 100 million boe.

The agreed work program for P2252 includes the shooting of not less than 400 sq km of new broadband 3-D seismic data over the Pensacola prospect in the summer of 2019, subsequent processing of new and existing seismic data and subsurface studies required to support a well investment decision before the end of 2020.

Cluff also granted Shell the option to acquire a 50% working interest in its P2437 license, which contains the Selene prospect.

The Selene prospect is estimated to contain unaudited mean gas in place of 509 Bcf or an equivalent of roughly 90 million boe. It is located next to the Shell-operated infrastructure that links to the Barque gas field and exports gas into the Bacton Gas Terminal.

The deal was advised by Gneiss Energy and Allenby Capital Ltd.

Reuters contributed to this article.

Offshore