Deltic Energy announces North Sea gas discovery in Selene well
Published: 03:43 31 Oct 2024 EDT
Deltic Energy PLC (AIM:DELT) has announced a significant new gas discovery at the Selene prospect in the UK’s Southern North Sea.
The Shell-operated 48/8b-3Z well reached a planned depth of 3,540 metres and encountered the anticipated Leman Sandstone formation with evidence of gas throughout the reservoir.
Estimates put the discovery’s recoverable resources between 95 and 176 billion cubic feet (BCF).
This is at the lower end of the pre-drill estimate range, but, significantly, Deltic said the bulk of the resources are concentrated in the higher-quality B-Sand up-dip from the 48/8b-3Z well location - which should support a simpler and cheaper development option with greater gas production per well than was previously envisaged.
Reservoir analysis indicates a higher-than-expected quality, with a 53-meter B-Sand section showing 12.1% porosity, also supporting favourable recovery factors for future development.
Deltic envisages the potential for a straightforward and cost-efficient development, which importantly eliminates the need for any additional appraisal wells.
It expects that alongside partners Shell and Dana Petroleum, the project will be well placed to progress towards field development planning and a final investment decision.
“The outcome of the Selene well is a good result overall and extends Deltic's exploration success record to two from two," Deltic chief executive Andrew Nunn said in a statement.
“Although we are predicting recoverable volumes at the lower end of pre-drill estimates, the improved quality of the B-Sand and increased resource concentration should support a simpler development with enhanced economics due to reduced CAPEX and OPEX requirements.”
Nunn added: “We are looking forward to engaging with Shell and Dana as we work through the customary post-well analysis and preparation of a plan which will move the Selene discovery towards development over the coming year.
“We continue to believe that the asset can create material value for our shareholders."
