Shell Greenlights Drilling Program For 2024
Shell has approved a two-well drilling campaign planned for 2024 in the North Sea. The information follows from a published statement by Shell’s joint venture partner Deltic Energy.
Exploration well at the Selene field
Selene natural gas field:
- believed to be one of the largest undiscovered structures in the Leman Formation of the Southern Gas Basin;
- is located in the southern part of the British sector of the North Sea, 20 km from the infrastructure of the Barque natural gas field, operated by Shell, natural gas from Barque is transported to the Bacton gas processing plant (GPP);
- P50 prospective resources are estimated to be 318 Bcf of gas, with a 70% probability of geological success.
According to Deltic, geotechnical studies have already been completed. The results of this work will be taken into account in the operational drilling plan. Drilling of an exploration well is planned for the 3rd quarter of 2024. It was previously reported that, as part of the agreement between the project partners, Deltic will cover 75% of the costs of drilling and testing a well in the promising Selene subsurface area, which amounts to up to $25 million.
Shell UK Ltd has exercised its option on license P2437 and, in particular, the Selene subsurface area. Upon completion of the transaction in August 2019, Deltic transferred a 50% interest in license P2437 to Shell in exchange for a cash consideration of US$600 thousand, and Shell financed 75% of the 1st exploration costs.
Pensacola appraisal well
The Shell-led JV has already completed the final investment decision for the well under license P2252, and has also approved the 2024 work program and budget. This will allow the Pensacola appraisal well to be drilled in late 2024.
Pensacola Field:
- is one of the most significant discoveries in the Southern Gas Basin in recent years;
- Deltic estimates P50 potential resources at 302 Bcf of gas;
- drilling of an appraisal well is planned for the 1st half of 2024.
Upon completion of the transaction in Q2 2019, Deltic transferred a 70% working interest in P2252 to Shell in exchange for Shell financing 100% of the cost of a 400 km2+ 3D seismic acquisition program over Pensacola, which was completed in the summer of 2019. Shell also funded the corresponding data processing and other studies, which resulted in a positive decision to invest in the well in March 2021.
Tender procedures are currently underway to lease drilling rigs for Selene and Pensacola.
