Deltic Energy PLC (AIM:DELT) announced the mobilisation of the Valaris 123 drill rig for the Selene well.
It was mobilized on 21 July and is expected to arrive shortly at the Selene location in the Southern North Sea.
Drilling operations are expected to begin soon after arrival and will last approximately 90 days.
The well is designed to collect all key information in relation to reservoir quality and gas composition, ahead of a potential field development decision.
It is not believed that a full well test will be necessary to achieve that goal, and therefore it is intended that the well will be plugged and abandoned on completion.
"We are excited to be commencing drilling operations on Selene with our partners Shell and Dana, and for which we are fully carried for the estimated success case cost,” chief executive Graham Swindells said in a statement.
“This will be the first exploration well spudded on the UKCS in 2024 and is an equally important milestone for Deltic.
“The Selene prospect is a high impact infrastructure-led exploration opportunity which demonstrates the strength and depth of the portfolio that we have built over the last few years, and which we estimate to be worth multiples of the company's current market value.”
Swindells added: “Despite ongoing political uncertainty, we look forward to commencing operations and continue to believe exploration on the UKCS has a hugely important role to play in supporting the provision of energy security, vital jobs within the energy sector and offsetting higher carbon intensity imported energy."
Deltic estimates the Selene structure contains gross P50 prospective resources of 318 billion cubic feet (BCF).
The company is fully carried for its 25% working interest in the Selene well up to a gross success case cost of US$49 million, which exceeds the operator's success case well authorization for expenditure of US$47 million.