document: Egdon Resources announced on 21 January 2020 that it has agreed a deal with Shell for the latter to farm-in to licences P1929 (blocks 41/18a and 41/19a) and P2304 (block 41/24) which contain the Resolution and Endeavour gas discoveries. Under the terms of the deal Shell will acquire a 70% interest and operatorship in the licences in return for funding 85% of the costs for the acquisition and processing of a 3D survey over the discoveries up to USD 5 million. Shell will also pay for all studies and costs included in a well investment decision on the licences. Completion of the deal is subject to regulatory approval. On 8 June 2020 Egdon disclosed that it was granted a licence extension for P1929 and P2304 by the Oil and Gas Authority (OGA) and it had also agreed a revised work obligation and timescale applicable to both licences. In the same announcement, Egdon stated that it will progress with the reassignment of operatorship and interest in the licences to Shell.  In April 2019 Egdon announced the results of a Competent Person's Report (CPR) prepared by Schlumberger Oilfield UK Plc which stated that the Resolution gas discovery is estimated to contain Contingent mean Gas Resources of 231 Bcf with a P90 to P10 range of 389 Bcf. Egdon planned to shoot 3D seismic during spring 2020 subject to a successful farm-out. Following this the plan would be to drill and test an appraisal well on Resolution prior to a potential field development. In an update on 27 November 2019 Egdon reported that the OGA approved a six month licence extensions to P1929 and P2304 until 31 May 2020, the second extension in June 2020 extended the licence to 31 May 2024. Within the latter four year extension, Egdon must acquire 400 sq km of 3D seismic in P1929 and P2304 before 21 May 2021 and drill a well down to 1,700 m TVDSS or 75 m below the Base Permian unconformity in one of the licences before 30 November 2022.   Resolution is a dip and fault closed structure defined on reprocessed 2D seismic. Resolution will be appraised with an offshore well because the well cost is comparable with an onshore to offshore well and has a lower delivery risk. Egdon will develop Resolution via an offshore well head platform linked via pipeline to an onshore gas processing facility. The main risk is thought to be the ability to produce gas from the relatively tight carbonate. Total drilled well 41/18-2 in block 41/18 in 1966 and made a gas discovery which flowed 2.5 MMcf/d from Permian Hauptdolomit fractured carbonates.  Interest in licences P1929 and P2304 following completion of the deal will be held by Shell U.K Ltd (70% + operator) and Egdon Resources UK Ltd (30%).
summary: (Anglo-Dutch B.) Egdon Resources (-> 30%) has agreed a deal with Shell (->70% op), for to farm-in to licences P1929 (blocks 41/18a and 41/19a) and P2304 (block 41/24) which contain the Resolution and Endeavour gas discoveries. Under the terms of the deal Shell will acquire a 70% interest and operatorship in the licences in return for funding 85% of the costs for the acquisition and processing of a 3D survey over the discoveries up to US$5 MM. 