Shell (LON: SHEL) and Deltic Energy (AIM: DELT) have taken a well investment decision on their planned appraisal of the Pensacola discovery.
The find, considered generational when it was announced in the Southern North Sea this year, has since been increased in estimates to hold best-case estimates of 342m barrels of oil equivalent.
Deltic is 30% owner of the Pensacola licence, partnered with operator Shell which holds the remaining 70% following a farm out deal in 2019.
The firm said the joint venture has now finalised the positive well investment decision on Licence P2252 and approved the 2024 work programme and budget that allows for drilling the Pensacola appraisal well in late 2024.
Meanwhile geotechnical work on Selene, another well expected in 2024, has now completed, with the vessel now having been de-mobilised.
“The results of this work will be incorporated into the operational drilling plan,” said Deltic.
“The well remains on track to be drilled in Q3 of 2024.”
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.
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