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Cluff Natural Resources said its farm-out of licence P2437 to Shell had been completed after receiving regulatory consent.
Under the agreement, the company would now receive the balance of the USD$600,000 initial consideration from Shell within 30 days of completion and retain a 50% working interest in licence P2437.
Once a well investment decision had been made, Shell would pay for 75% of the cost of an exploration well, including testing, subject to an aggregate cap of USD$25m.
'The UK's Southern Gas Basin is coming under increased focus currently with several highly material exploration campaigns ongoing around our acreage,' the company said. 'As such, we are delighted to have formally completed this farm out agreement with a committed partner such as Shell, to de-risk and ultimately drill the high-impact Selene prospect.'
At 10:02am: (LON:CLNR) Cluff Natural Resources PLC share price was 0p at 1.48p