Deltic Energy plc reported a “substantial hydrocarbon column” discovery at the Pensacola prospect on the joint venture (JV) licence P2252 in the southern North Sea.
HYDROCARBON COLUMN
Deltic holds a 30% working interest in the project with Shell UK Ltd (operator 65%) and ONE-Dyas (5%).
Well 41/05a-2 reached a total depth of 1,965 metres true vertical depth subsea (TVDSS) and wireline logs confirmed the presence of mobile gas and oil in the primary Zechstein Hauptdolomite carbonate target interval.
The well encountered the top Hauptdolomite reservoir at 1,745m TVDSS and confirmed a reservoir thickness of 18.8m, with better than expected porosity averaging 16%.
As planned, the well penetrated the edge of the Pensacola structure in a down dip location and had proven a substantial hydrocarbon column, said Deltic.
Post acidisation, the well flowed gas at peak rates of c. 4.75 mmscf/day declining to 1.75mmscf/day after the 12 hours of the test.
The results were in line with Deltic’s pre-test expectations based on the reservoir parameters derived from the well, added the company.
Being located down dip, flow rates during the well test are not expected to be representative of flow rates of potential future production wells which would likely target the central part of the Pensacola structure and are expected to generate higher rates.
LIGHT OIL
Light oil with a preliminary gravity of 34-36° API was also produced at approximately 18 bbls/day during the well test.
The potential of this oil with respect to the Pensacola opportunity was yet to be determined, added Deltic.
Based on data collected during drilling and testing, Deltic has revised its volumetric models and now estimates the Pensacola discovery to contain P50 estimated ultimate recovery of 302 bcf (P90 to P10 range = 164 to 519 bcf) which are “fully aligned” with its pre-drill guidance.
Following the well test programme, the well will be plugged and abandoned and the Noble Resilient will demobilise from the site.
OPTIONS
The net cost to Deltic of drilling the Pensacola well is expected to be £11.1m reflecting additional operational requirements during drilling, weather conditions, additional testing costs, as well as inflation and exchange rate movements.
Deltic will incorporate the findings from the well into its geological and commercial models and work with its partners on the appraisal and development plan.
The company will now consider all options in relation to its interest in Pensacola including appraisal and development as well as potential full or partial monetisation.
POTENTIAL
Chief executive Graham Swindells said that the discovery was a major milestone in the company’s development as it continues its exploration-led strategy.
“We believe that the Pensacola discovery will open a new Zechstein play in this mature basin and highlights the remaining potential of the North Sea as a source of further discoveries which can provide domestically produced natural gas, supporting UK energy security while we transition toward a net zero economy.”