Deltic Energy plc and joint venture partner Shell UK Ltd have made the investment decision to drill the high impact Selene gas prospect off the northeast coast of England.
SCHEDULES
The company added that the timing of a well slot had yet to be confirmed and would be subject to drilling schedules.
This is expected to be confirmed as the JV progresses well planning on southern North Sea licence P2437.
SELENE
The Selene prospect is one of the largest unappraised structures in the Leman Sandstone fairway of the southern gas basin.
Deltic estimates Selene contains gross P50 prospective resources of 318 bcf of gas (with a P90 to P10 range of 132 to 581 bcf) and a 70% geological chance of success.
Under the terms of the original farm-out with Shell, Deltic holds a 50% working interest in the licence but will be carried for 75% of the costs of drilling and testing the well up to $25 million.
As a result of the well investment decision, Shell will be operator of the licence.
QUALITY
The JV has completed technical and commercial evaluation and will now progress to detailed well design, planning, rig procurement and other key preparations for drilling.
“This is a very exciting time for Deltic as we move into the next phase of our strategy, building on the strong platform created by farm outs to both Shell and Capricorn,” said chief executive Graham Swindells.
“The commitment to drill this material, high impact, low risk gas prospect is another highly significant milestone for Deltic and our team.
“Adding another committed well to our programme, following recent confirmation that Pensacola will be drilled in September, represents further endorsement of the quality of Deltic’s assets as well as demonstrating the success of our strategy to create a conveyor belt of exploration opportunities moving from licensing to drilling with world-class partners in place.”