Deltic Energy (LON: DELT) looks to drill a “similar sized prospect to Pensacola in the summer of 2024”.
The London-listed oil and gas company has said it “submitted a number of applications for blocks and part blocks in both the Southern and Central North Sea” in the UK’s 33rd licensing round.
In its 2022 annual report, the firm writes: “The outlook for Deltic remains extremely bright”
Graham Swindells, Chief Executive of Deltic Energy, said: “2022 saw a fundamental shift in the delivery of Deltic’s business model as the Pensacola well started drilling in November, subsequently being announced as a highly material gas discovery in February this year.
“Pensacola entirely vindicates our long-term business strategy of identifying high-value exploration assets at a very early stage and bringing them to fruition.
“We are now in the enviable position of deciding how best to appraise and develop this 300 BCF discovery alongside our partners, and delivering value for shareholders.
In November 2022, Shell commenced the drilling of the first well at Pensacola, with drilling operations continuing through to February 2023, to which the London-based firm commented: “We were delighted to announce a very significant discovery of gas.”
Pensacola was dubbed a ‘well to watch’ by analysts last year and the project did not disappoint uncovering 300 billion cubic feet (bcf) of gas and the decade’s largest find.
The firm says it wants to drill its Selene prospect by around the middle of 2024.
This North Sea prospect is set to hold 300 bcf, half of which will be owned by Deltic.
In July when Shell confirmed that it had decided to make a positive well investment decision and committed to drilling the prospect.
Mr Swindells added: “We continue to advance our second potentially high-value asset, the Selene gas prospect, also located in the Southern North Sea.
“Together with our partner Shell, we expect to drill this similar sized prospect to Pensacola in the summer of 2024.
“With this drilling activity coupled with additional prospectivity from the rest of our portfolio and potential new licence awards, I believe the future looks extremely positive for Deltic, especially at a time when the UK should rightly be focused on its longer-term energy security.”
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