Shell has mobilised its Valaris 123 drilling unit to drill 2024’s first well at Deltic Energy’s (AIM:DELT) Selene prospect in in licence P2437.
Valaris 123 was mobilised on 21 July from its current location in the Central North Sea, and is anticipated to arrive at the Selene well location in the Southern North Sea shortly, depending on weather conditions encountered during transit.
Drilling operations are expected to commence shortly thereafter, with planned operations lasting approximately 90 days.
The well is designed to collect all key information in relation to reservoir quality and gas composition that is required to support, assuming a successful drilling outcome, a field development plan and final investment decision on the potential development of the Selene gas field without the requirement for a further appraisal well.
Deltic estimates the Selene structure to contain gross P50 prospective resources of 318bcf of gas in the Leman Sandstone reservoir, which is the key reservoir interval in all adjacent gas fields including Barque, Clipper and West Sole.
Deltic holds a 25% interest Selene after farming-out the project to Shell in 2019 and Dana Petroleum in February 2024.
The partners have determined there is no requirement for a full well test as part of that process and, in line with normal oilfield practice, the well will accordingly be plugged and abandoned on completion.
Deltic CEO Graham Swindells commented: “We are excited to be commencing drilling operations on Selene with our partners Shell and Dana, and for which we are fully carried for the estimated success case cost.
“This will be the first exploration well spudded on the UKCS in 2024 and is an equally important milestone for Deltic. The Selene prospect is a high impact infrastructure-led exploration opportunity which demonstrates the strength and depth of the portfolio that we have built over the last few years, and which we estimate to be worth multiples of the company’s current market value.
“Despite ongoing political uncertainty, we look forward to commencing operations and continue to believe exploration on the UKCS has a hugely important role to play in supporting the provision of energy security, vital jobs within the energy sector and offsetting higher carbon intensity imported energy.”
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