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Deltic Energy reveals significant upgrade to Selene prospect’s gas estimates

Work with Shell has led to higher gas in place estimates and an upgraded chance-of-success estimate, ahead of proposed well drilling in 2022

Deltic Energy PLC - Deltic Energy reveals significant upgrade to Selene prospect’s gas estimates

Deltic Energy PLC (LON:DELT) has announced a material upgrade to gas estimates for the Selene prospect, part of its North Sea exploration portfolio alongside Royal Dutch Shell PLC (LON:RDSB).

Notably, the estimated chance of success has also been lifted significantly to now stand at 70%, up from 39% in the previous estimate.

READ: Reabold withdraws Deltic Energy takeover interest

The new resource estimate sees some 629bn cubic feet of in-place P50 gas resources, with a range set at 286bn in the P90 (the highest confidence) estimate and 1.02 trillion cubic feet in the P10 (most prospective) estimate.

Deltic noted that the upgrade is the result of a considerable amount of work including the reprocessing of existing 3D seismic data and the use of an innovative technological approach to depth conversion by a Shell and Deltic joint team.

Work continues focusing on potential development scenarios, estimation of recovery factors and project economics. These factors will feed into a well investment decision ahead of the slated 2022 drilling programme.

"We are delighted at the ongoing collaboration with Shell on the Selene licence and that the detailed work being undertaken by the joint Deltic-Shell technical teams is supporting and enhancing the earlier work completed by Deltic,” Graham Swindells, Deltic chief executive said in a statement.

“The significantly increased gas volumes and decreased risk profile further cements the importance of Selene as one of the largest undrilled Leman Sandstone structures in this mature play. 

“We are encouraged by the level of technical and human resources being deployed on this project by Shell and will continue to work with them towards securing a firm drilling commitment for the proposed 2022 well on Selene," he added.

The good news comes a day after confirmation that Deltic had successfully fended off unwanted takeover interest.

On Monday, Reabold Resources Plc (LON:RBD) withdrew its interest in acquiring the North Sea company. Reabold in a statement said it does not intend to make an offer for Deltic.

Deltic in mid-July rejected the proposed share-based takeover offer which, at 1.5 Reabold shares per Deltic share, was pitched at £12.3mln or 0.87p per share.

Quick facts: Deltic Energy PLC

Price: 1.2 GBX

AIM:DELT
Market: AIM
Market Cap: £16.87 m
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