Deltic Energy plc preparations continue for drilling the Selene gas exploration well and Pensacola appraisal well during 2024 in the southern North Sea.
FINANCING
Site survey work, rig selection and contracting process for both wells continue ahead of drilling Selene on licence P2437 during Q3 2024 and the Pensacola discovery in late 2024.
Deltic estimates Selene to contain gross P50 prospective resources of 318bcf gas (with a P90 to P10 range of 132 to 581bcf) with a 70% geological chance of success.
The Selene prospect is considered one of the largest unappraised structures in the Leman Sandstone fairway of the southern gas basin.
Deltic and its joint venture partners expect to formalise a positive well investment decision in relation to the Pensacola appraisal well during this month.
Site survey works on the Pensacola appraisal well location are due to be carried out in the first half of 2024. The rig tendering process for Selene and Pensacola continues.
The company said it was working on “a number of potential options” to realise value and reduce future capital expenditure, with “a considerable level of interest” received for both wells.
As at 30 November, the company holds £6.1 million cash, in line with management expectations.
Deltic is also still awaiting the outcome of its applications in the UK’s 33rd licensing round to increase its portfolio.
Chief executive Graham Swindells added: “This continues to be a busy year for Deltic, as we lay the foundations for what will be a very exciting and active 2024.
“Plans for the drilling programme for Selene and Pensacola are progressing well and we are working closely with our partners to advance and refine those, whilst also progressing options within our portfolio to realise value.
“We look forward to 2024 as we remain focused on creating value for our shareholders.”