Shell (LON: SHEL) and Deltic Energy (AIM: DELT) have kicked off site surveys for the Selene exploration well in the North Sea.
A geophysical site survey vessel has been sent to the Southern North Sea location to acquire 3D seismic data, which will later determine the exact location of the rig.
Shell and Deltic took an investment decision on Selene in July last year.
Selene is targeting P50 (best estimate) prospective resources of 318 billion cubic feet of gas, with a geological chance of success of 70%.
Under their 2019 farm-in arrangement, Shell is covering 75% of the costs of drilling and testing the well up to $25m.
Deltic describes the prospect as “one of the largest undrilled structures in the world class Permian Leman Sandstone Fairway”.
The well is expected to be drilled in mid-2024.
Deltic CEO Graham Swindells said: “The commencement of the site survey on Selene is another important step on the path to drilling this high impact, low risk prospect in the Southern North Sea.
“We are looking forward to working with Shell as we continue to progress the well design prior to the scheduled drilling operations in mid-2024.”
The firm said Selene is a “strategic asset located close (to) infrastructure” but hasn’t yet named any tie-back options should it be successful.
Deltic has a 50% working interest in the well.
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