Deltic Energy PLC (AIM:DELT) has unveiled a major upgrade to resources estimates for the Shell-operated Pensacola discovery in the North Sea.
It is seen as supportive to the explorer’s plans to monetise the new discovery.
The AIM-quoted company owns 30% of the discovery for which estimates have now doubled to some 342mln barrels of oil equivalent of in-place resources.
Recoverable resources have similarly doubled to 99mln barrels oil equivalent, from around the estimated 50mln barrels immediately after the exploration well was completed in early 2023.
"The Pensacola oil and gas discovery is transformational for Deltic,” said chief executive Graham Swindells.
“Well data indicates that Pensacola contains close to double our original estimate, representing one of the most significant discoveries in the North Sea in many years.
"This is an outstanding result for Deltic.
“Our success to date reinforces the quality of our technical team and the Deltic model of taking licences from award through to successful drilling."
Pensacola is now seen to comprise around 30% oil, up from initial expectations, and Deltic highlighted that Shell and the venture partners are progressing work for the next phase of the appraisal and development programme.
An appraisal well is currently slated for late 2024, Deltic noted.
Swindells added: "We look forward to working with our JV partners to continue moving this exciting asset through the appraisal phase and onward towards development.
“With the significant additions to our resource base, we will also continue to pursue monetisation options in line with our stated strategy."