SHELL is set for a seismic campaign in the UK North Sea after the Anglo-Dutch supermajor agreed a farm-in deal with UK junior Egdon Resources to a pair of gas discoveries, Resolution and Endeavour. Egdon had been looking to enlist partners at the offshore licenses P1929 and P2304 in the southern North Sea since last year after an independent analysis confirmed a mean contingent resources volume of 231 billion cubic feet at the Resolution find. Shell will now take over operatorship of the licenses and a majority interest, the junior partner said. "On completion Egdon will retain a 30% interest in the licenses. Under the terms of the farm-in agreement, Shell will pay 85% of the costs of the acquisition and processing of the 3D seismic survey covering both the Resolution and Endeavour gas discoveries," Egdon said early this week. "The carry on the acquisition costs will be capped at $5 million gross, beyond which Egdon would pay 30% of the survey costs. Furthermore, Shell will also pay 100% of all studies and manpower costs through to the well investment decision on the licences," the company said.
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