Shares of Deltic Energy PLC (AIM:DELT) rose by 4.5% in early trading after it announced that Shell UK has initiated site survey works for the Selene exploration well.
Shell, which is the licence operator, has sent a geophysical site survey vessel to collect high-resolution 2D seismic data over the intended well site. This seismic data collection is expected to conclude by the end of August.
The information obtained will be instrumental in the subsequent geotechnical survey, ensuring accurate determination of the drilling rig's location and positioning.
Graham Swindells, Deltic's chief executive, said the move marked a significant advancement towards drilling the "high-impact, low-risk prospect in the Southern North Sea".
At 9.07 am, the shares were changing hands for 29.78p, up 1.28p.
Canaccord Genuity (TSX:CF, LSE:CF) has an "NPV10 target price" of 240p. Allenby Capital reckons that if Selene and Pensacola (another high-value North Sea asset) are successful, then Deltic is worth 486p a share.