Shell is to acquire 70% of the P2252 licence block, it will become the operator and will pay for 100% of a proposed seismic.
The P2252 hosts the Pensacola gas prospect estimated previously at around 100mln barrels oil equivalent.
At the same time, Shell has an exclusive option for three months to acquire a 50% stake in the P2437 licence. Cluff is to receive US$600,000 of payments from Shell for the option.
If an investment decision is made to proceed with an exploration well at P2437 then Shell would commit to covering 75% of the well costs, up to a cap of US$25mln.
P2437 contains the Selene prospect which has been estimated at around 509bn cubic feet of gas, which equates to around 90mln barrels oil equivalent.
“This partnership is a clear endorsement of the quality of the licences in our portfolio and demonstrates the Cluff technical team's ability to identify and transform overlooked or less understood opportunities,” said Graham Swindells, Cluff chief executive.
“We are particularly excited at the prospect of embarking on our partnership with Shell with both parties sharing a commitment to further development in the Southern North Sea.
“Most importantly, we now have direct visibility over the route to future drilling activity, and the potential to create further significant value for shareholders. We look forward to building our partnership with Shell and successfully developing these prospects."