Deltic Energy plc and joint venture (JV) partner and operator Shell UK will start a drill campaign at the Pensacola prospect on licence P2252 in the UK Southern North Sea (SNS).
PENSACOLA
The partners have confirmed their commitment to the Oil and Gas Authority.
Deltic said that the investment move had the potential to transform the company, and was a “vital step” in evaluating the Zechstein reef play which could revitalise exploration in the SNS.
Following re-interpretation of new 3D seismic data over the prospect, Deltic estimates that the Pensacola prospect contains gross P50 prospective resources of 309 bcf (with a P90-P10 range of 39 bcf to 1,181 bcf).
Deltic added that this ranked Pensacola, located to the north west 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%.
SCHEDULE
Drilling is expected to start in May 2022 and Shell will contract a drilling unit as part of a multi-well drilling campaign, bringing advantageous day rates and operational efficiencies.
Deltic remains fully funded for its 30% working interest in the well.
The JV is continuing 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 Deltic 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.
PORTFOLIO
The company’s SNS assets include P2252 – 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 P2384 – Manhattan; P2542 – Syros; and P2352 – Dewar.