Egdon Resources said it had agreed to sell 70% stakes in two exploration licences in the North Sea to Royal Dutch Shell. Licences P1929 and P2304 contain the Resolution and Endeavour gas discoveries, respectively. Shell, which become licence operator would pay 85% of the costs of the acquisition and processing of a 3D seismic survey. The carry on the acquisition costs would capped at $5 million gross, beyond which it would pay 70% of the costs. Shell would also pay the entirety of all studies and manpower costs up to a well investment decision on the licences. 'We are delighted to have signed a farm-in agreement with Shell in respect of these highly prospective licences,' chief executive Mark Abbott said. 'This transaction validates our views on the potential of these blocks and introduces a highly experienced and respected operator to progress appraisal activity on the Resolution and Endeavour gas discoveries.' 'In difficult market conditions Egdon has secured a substantial carry on costs to the well investment decision whilst retaining a material 30% interest in the licences.' At 1:17pm: (LON:EDR) Egdon Resources PLC share price was +1.25p at 6.5p (LON:RDSA) Royal Dutch Shell share price was -37.75p at 2204.25p
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