Deltic Energy plc has been provisionally awarded two central North Sea licences over three part-blocks covering 226km2 in UK’s 33rd offshore licensing round.
LOW COST
The North Sea Transition Authority (NSTA)’s tranche 2 awards are for blocks 22/24f (part) and 22/25e (part) over 80km2 within Dewar and blocks 29/4b across 146km2 in Central Graben.
Deltic previously licensed and matured Dewar which it considers “low risk”.
The prospect in the Forties Sandstone is close to existing and proposed new infrastructure associated with the redevelopment of the Murlach field (formerly named Skua).
Work for the initial phase of the licence is restricted to upgrading Deltic’s seismic data sets.
The programme is expected to be at relatively low cost and is focused on providing greater confidence around prospect volumetrics and risk.
Central Graben block 29/4b represents the residual part of a larger application which included the contiguous block 29/3b, provisionally awarded to Shell UK Ltd in tranche 1.
Deltic said that block 29/3b was considered the most prospective part of the application area and the company will now consider if its technical work will justify accepting block 29/4b in isolation.
Chief executive Graham Swindells added that the company was looking forward to the tranche 3 awards for the southern North Sea which was the focus of the company’s application.
“The blocks awarded to date have the potential to further diversify our asset base and provide optionality within our portfolio.
“Deltic is committed to exploration within the UK and a regular, predictable licensing process remains critical to maintaining domestic gas production, supporting jobs and delivering energy security.”
NSTA has yet to announce the tranche 3 awards.