With flow tests completed at Shell’s Pensacola gas prospect in the North Sea, Deltic’s Chief Executive Officer (CEO) Graham Swindells said it is shaping up to be one of the largest discoveries there in decades.
Deltic is Shell’s partner on the license.
Speaking to Proactive’s Thomas Warner on Feb. 8, Swindells said “We believe that the Pensacola discovery will open a new Zechstein play in this mature basin and highlights the remaining potential of the North Sea as a source of further discoveries which can provide domestically produced natural gas, supporting UK energy security while we transition toward a net-zero economy.”
The well penetrated the edge of the Pensacola structure in a down-dip location and has proven a substantial hydrocarbon column. Post acidisation, the well-flowed gas at peak rates of about 4.75 MMscfd, declining to 1.75 MMscfd after 12 hours of the test. These results are in-line with Deltic’s pre-test expectations based on the reservoir parameters derived from the well, it said.
Following completion of the well test programme, Deltic said the well will now be plugged and abandoned in line with the usual procedure for a well of this nature, and the Noble Resilient will be de-mobilised from site. The net cost to Deltic of drilling the Pensacola well is expected to be £11.1 million reflecting certain additional operational requirements during drilling, weather conditions, additional testing costs, as well as market influences, including inflation and exchange rate movements.
Deltic will now incorporate the findings from the well into its geological and commercial models and work with the joint venture on the forward appraisal and development plan.
Following this discovery, in line with the Company’s strategy, Deltic will consider all options in relation to its interest in Pensacola including appraisal and development as well as potential full or partial monetisation of value. Deltic said it remains committed to maximising shareholder value from the discovery and across its asset base.
Deltic retains a 30% working interest in Licence P2252 alongside Shell (65% – Operator) and ONE-Dyas (5%).