LONDON – Deltic Energy has issued an update on drilling preparations for the Pensacola gas prospect in the UK southern North Sea.
The company and partner Shell expect the well to spud in late summer.
Analysis of the wellsite survey data has identified hard seabed conditions at the well location. Shell is using this data to support its rig selection and contracting process to ensure safe and efficient operations, Deltic said.
Pensacola is a Zechstein Reef prospect northwest of the producing Breagh gas field, with prospective resources of 309 bcf. A successful result could open the Zechstein reef play in UK waters - the play has hitherto been produced from Poland to The Netherlands.
As for the Selene prospect in UK license P2437, Deltic/Shell are working towards a well investment decision, with recoverable resources recently upgraded to 318 bcf.
Phase A of the license is due to expire in September: the partners have approached the North Sea Transition Authority for an extension. Deltic considers Selene the largest undrilled structure of its kind in this part of the southern North Sea (the Leman sandstone fairway), with an estimated 70% geological chance of success.
Under the terms of the 2019 farm-out, once a well investment decision has been taken Shell would assume operatorship and pay for 75% of the costs of the initial exploration well up to a gross cost of $25 million.