Shell and Deltic Energy have set out development options and a date for drilling a high-impact exploration target in the North Sea.
In an AGM presentation released on Wednesday, Deltic said the Pensacola prospect, operated by Shell, will be drilled in late September.
The firm, which owns 30% of Pensacola with Shell holding the remaining 70%, said it has prospective potentially recoverable resources of 309 billion cubic feet of gas.
In a low volume case scenario of circa 75 BCF, Shell and Deltic plan to develop Pensacola as a tie-back to the Ineos-operated Breagh platform in the Southern North Sea, around 45 miles off the east coast of England.
But in a mid/high case the preferred option is to install a new pipeline to tie the prospect back to the Teesside gas processing facility onshore.
Deltic has previously described Pensacola as “one of the highest impact exploration targets to be drilled” in the Southern North Sea in recent years.
The company said an unnamed jack-up drilling rig will be mobilised from its current well location in the Dutch sector for drilling at Pensacola.
Well operations are expected to last 60-80 days once it has been spudded.
Deltic highlighted to investors that its 30% working interest gives it the option to divest or farm down during the appraisal stage.
Pensacola has a 55% geological chance of success.
Shell is also farmed into Deltic’s Selene prospect in the southern gas basin, targeting 318 BCF.
Deltic said it is committed to drilling the prospect, pending a well investment decision from Shell who are paying 75% of costs of the first well up to a cap of $25 million.
Deltic recently had success with Capricorn Energy, which farmed into five of its licences in the North Sea in November.
Recommended for you
