Shell will kick off seismic studies on the Resolution and Endeavour gas discoveries in the North Sea in the first quarter of next year.
It comes as the energy giant took over operatorship of the licences from Egdon Resources, farming in with 70% interest in both.
Under the deal, Shell will pay 85% of the costs for acquiring and processing the 3D seismic survey, which needs to completed by May 31 2021 under the terms of the licenses.
Shell will meet these costs up to $5million, at which point Egdon will be responsible for 30% of survey.
Shell will also pay 100% of all studies and manpower costs through to the well investment decisions.
Egdon Resources cited a competent persons report from Schlumberger from last year which estimated the discoveries have mean contingent resources of 231 billion cubic feet of gas.
The Shell-operated licenses lie “adjacent” to the North Yorkshire coast in the Southern North Sea, Egdon said, with Endeavour first having been discovered in 1966 by Total.
Mark Abbott, managing director of Egdon Resources, said: “We are delighted to have completed the transfer of interest and operatorship to Shell in respect of these important, and potentially valuable, licences for Egdon. The focus will now be on progressing appraisal activity on the Resolution and Endeavour gas discoveries.
“The first part of this activity will be the acquisition of a marine 3D seismic survey during Q1 2021. We look forward to building on our good working relationship with Shell and benefiting from their substantial worldwide operational experience and expertise.”
The North Sea farm-in deal between Shell and Egdonwas first agreed in January this year.
Egdon Resources, headquartered in Hampshire, is an onshore-focussed oil and gas exploration business.
The firm acquired the Endeavour and Resolution licences, P1929 and P2304, in the Oil and Gas Authority’s 26th licensing round.