Deltic Energy plc has confirmed a gas discovery at the Selene joint venture in the UK southern North Sea.
VOLUMES
Operator Shell UK Ltd drilled 48/8b-3Z well, reaching its total depth of 3,540 metres TVDSS on 17 October and proved a “160 metre thick” section of Leman Sandstone.
“The top of the Leman Sandstone was encountered approximately 70 metres deep to prognosis with elevated mud gas readings, confirming the presence of gas, observed throughout the reservoir interval and into the underlying Carboniferous basement,” said Deltic.
Wireline logging and fluid sampling confirmed a “live gas column” above a gas-water contact at circa 3,370m which is in the middle of the B-Sand, the “key producing interval” within the Leman Sandstone section.
Updated post-well structural maps of the Selene prospect point towards a “maximum gas column of c. 100 metres”.
The company added that initial indications were of a “high-quality” dry gas, typical of production from adjacent fields, with no reported H2S.
A revised volumetric model estimates Selene to contain gross P50 estimated ultimate recoverable resources of 131 bcf, with P90-P10 range of 95 to 176 bcf, at the lower end of pre-drill estimates.
Most of the recoverable resources are concentrated in the higher quality B-Sand up-dip from 48/8b-3Z, offering a “simpler and cheaper development” option with greater gas production per well than previously thought.
The joint venture will undertake wireline data analysis, core samples, fluid samples and pressure testing data to refine the geological model, volumetric estimates and the proposed development plan.
The partners could progress to field development planning and a final investment decision without a further appraisal well.
Deltic also plans to re-evaluate the Endymion prospect, on the north-eastern corner of the block, that could tie into any future Selene development.
Chief executive Andrew Nunn added:”The outcome of the Selene well is a good result overall and extends Deltic’s exploration success record to two from two.
“Although we are predicting recoverable volumes at the lower end of pre-drill estimates, the improved quality of the B-Sand and increased resource concentration should support a simpler development with enhanced economics due to reduced capex and opex requirements.”