On 8 February 2019 Cluff Natural Resources announced it had entered into a binding, conditional farm out agreement and a three-month exclusive option with Shell in relation to licences P2252 (blocks 41/5a, 41/10a and 42/1a) and P2437 (block 48/8b) respectively. Shell will acquire 70% interest and operatorship in licence P2252 which contains the Lytham, Fairhaven and Pensacola prospects. In return, Shell will pay all the costs of acquiring 400 sq km of new broadband 3D seismic data over the Pensacola prospect in Summer 2019. The work programme also involves the processing of new and existing seismic data and sub-surface studies to support a well investment decision before the end of 2020. All costs in relation to the well investment decision will be split in proportion to each companies interest in P2252. Cluff also agreed to grant Shell the option to acquire 50% interest in licence P2437 which contains the Selene prospect by 30 April 2019. On 30 April 2019 Cluff announced that Shell has exercised the option taking a 50% interest in the licence. Shell will make a payment of USD 600,000 which is comprised of an initial payment and further payment upon completion to Cluff. Shell will also pay 75% of the costs up to USD 25 million to drill an exploration well and well test on P2437. On completion of the deals Shell has indicated its intention to drill an exploration well on the Selene prospect as soon as possible. Completion of the deals is subject to regulatory approvals.  The Lytham and Fairhaven appraisal opportunity is interpreted as a large 4-way dip closed N-S orientated anticlinal structure compartmentalised by E-W oriented faults. The reservoir objective consists of a fractured Z2 Hauptdolomite platform carbonate. The reservoir has produced in Dutch, German and Polish regions. The Stassfurt Halite provides a 300 m seal and underlying early Carboniferous coals and organic shales could source light liquid hydrocarbons and gas. The prospect holds P50 prospective resources of 168 Bcf with a CoS of 46%. Cluff propose a horizontal appraisal well perpendicular to the fracture network to test the Hauptdolomite reservoir. Pensacola is a large patch reef structure with a fringing reef and lagoon architecture mapped on a mixed 2D and 3D seismic dataset. The fringing reef is interpreted as being a higher quality carbonate reservoir than the reef core. The fringing reef and lagoon fill are estimated to hold P50 prospective resources of 270 Bcf and 154 Bcf respectively. Cluff would be looking to acquire 3D seismic across the entire reef prior to drilling. Seismic acquisition and processing was budgeted at GBP 3.5 million with well costs in the region of GBP 8 million to 10 million. The Selene prospect is estimated to contain mean GIIP of 509 Bcf (90 MMboe) and is located on the Northern limb of the Sole Pit Basin inversion axis and is defined to have a NW-SE elongated closure. Selene is located in the Rotliegend aged Lower Leman Sandstone play fairway. Selene, a four-way dip closed structure, is thought to hold P50 Gross Prospective Resources of 291 Bcf and is analogous with a number of nearby fields including Shellâs operated Barque field. A Chance of Success for Selene has been attributed at 39%. It is located approximately 20 km from the Barque gas infrastructure which feeds the Bacton gas processing plant.   Exploration well 41/10-1 was drilled in block 41/10a in 1995 where gas shows were interpreted by Marathon from porous dolomites within the Zechstein evaporate sequence. Walter Oil and Gas drilled well 41/5-1 in block 41/5a during 2004 and penetrated the Hauptdolomite platform. There was the presence of gas in Zechstein but due to technical issues the well failed to flow gas. Image logs demonstrated persistent and long open fractures which resulted in significant mud losses. Lundin drilled the Lytham prospect with well 041/10-02 in 2007, however the well was sidetracked (041/10-2Z), having reached a TD of 800 m on 27 July 2007. The Zechstein Hauptdolomite was determined as dry and having poor reservoir quality with 7% porosity and 60% gas saturation. The well was plugged and abandoned without being tested. Two exploration wells have been drilled in 28/8b. Well 48/8a-1 discovered Sloop in 1989 by Conoco and is defined as a Lower Leman gas bearing sand in a faulted structure. Amerada Hess drilled 48/8b-2 on 13 January 1989 reaching a TD of 3,795 m with two cores being taken in the Rotliegend Leman Sandstone and a core in the Carbonifeous. Both formations were either tight or water wet and the well was plugged and abandoned as a dry hole on 7 April 1989. Â   Following completion of the deal interest in P2252 will be held by Shell U.K. Ltd (70% + operator) and Cluff Natural Resources Plc (30%). Interest in P2437 will be held by Cluff Natural Resources Plc (50% + operator) and Shell U.K. Ltd (50%).
Cluff Natural Resources (->0%) has announced that Shell (->100%) has exercised its exclusive option to farm in to Licence P2437 (Block 48/8b) contains the 291 BCF Selene Prospect.