Deltic Energy plc and joint venture partner Shell UK Ltd have decided to begin drilling in May on the Pensacola prospect in the UK southern North Sea (SNS).
TECHNICAL
The company said that the investment decision could transform the company and was a “vital step” in evaluating the Zechstein Reef play which in turn could revitalise exploration in the SNS.
Following re-interpretation of new 3D seismic data over the prospect within licence P2252, the company’s estimates are now gross P50 prospective resources of 309 bcf, with a P90-P10 range of 39 bcf to1,181 bcf.
Deltic added that this ranked Pensacola, located to the northwest of the Breagh gas field, as one of the highest impact exploration targets to be drilled in the gas basin in recent years.
The new interpretation of the 3D seismic data also resulted in materially increasing the geological chance of success at Pensacola from 20 to 55%.
Operator Shell will contract a drilling unit as part of a multi-well campaign, bringing “advantageous day rates and operational efficiencies”.
Deltic remains fully funded for its 30% working interest in the well.
The JV continues with well design and key preparations including well site survey and regulatory permitting.
“Confirmation of this well investment decision represents the achievement of another key milestone as we continue to execute our exploration-led strategy in the Southern North Sea with our world class partner Shell,” said chief executive Graham Swindells.
“The rigorous re-evaluation of the Pensacola prospect has validated and reinforced the fantastic work of our technical team and their initial view that the Pensacola prospect, and the Zechstein play as a whole, represented a significant missed opportunity in the Southern North Sea.
Deltic will also continue to progress its other prospects towards drilling phase.
The company’s SNS licences include P2252 containing Pensacola; P2437, Selene; P2428, Cupertino; P2424, Cortez; P2435, Blackadder; P2567, Cadence; P2560/P2561/P2562, Breagh South; and P2558, Pensacola N.
In the central North Sea, Deltic holds licences P2384, Manhattan; P2542, Syros; and P2352, Dewar.