Shell UK Ltd. has advised Egdon Resources PLC and the North Sea Transition Authority (NSTA) of its intention to withdraw from UK offshore licenses P1929 and P2304 containing Resolution and Endeavour gas discoveries, Egdon said in an Apr. 26 release.
In June 2020, Shell acquired a 70% working interest in and operatorship of the licenses, while Egdon retained a 30% interest (OGJ Online, June 8, 2020).
In January 2021, Shell advised Egdon that the marine 3D seismic survey, planned over the Resolution and Endeavour gas discoveries, was expected to be acquired in February 2022 rather than first-quarter 2021.
With Shell’s withdrawal, Egdon will now consider its options, including its ongoing commitment to the licenses and the potential for funding the forward work program—including a new farm-out—and will discuss these options with the NSTA.
Alex Procyk | Upstream Editor
Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).