Shell UK Ltd. will take a farmout from Sterling Resources Ltd., Calgary, to earn a 40% participating interest in the P1792 license and participate in the drilling of an exploratory well on the Beverley prospect, possibly the last undrilled salt diapir in the Central North Sea.
P1792, awarded to Sterling in the UK 26th round, contains Blocks 21/30f and 22/26c and the Beverley prospect and the Belinda and Evelyn discoveries.
Shell will cover Sterling’s 20% remaining participating interest share of 3D seismic costs across the two blocks and Sterling’s share of the costs of the Beverley well, which Sterling will operate.
Subject to the approval of the Department of Energy and Climate Change, the joint venture interests will be Sterling Resources (UK) Ltd. 20%, Shell UK 40%, and Valiant Petroleum PLC 40%.
Sterling sees great potential in Beverley given the drilling results of other analogous salt diapir structures in the Gannet area. Success could add to the existing Evelyn and Belinda discoveries to create a possible producing hub, the company said.