Deltic Energy PLC (LON:DELT) told investors that Royal Dutch Shell PLC, operator of Licence P2252 in the North Sea, has confirmed its commitment to the drilling of a well on the Pensacola prospect in 2021.
Well planning including design work and rig scoping has already begun, the company added.
It noted that Shell has been given a short extension for P2252, to the end of March, in light of the coronavirus (COVID-19) pandemic to allow analysis of seismic data ahead of a formal drill decision.
Deltic’s partner continues to carry 100% of Deltic's costs until the well investment decision is made.
"I am very happy to report Shell's continued commitment to explore for gas with us at the high impact Pensacolap prospect and that the well remains on track to be drilled in 2021,” said Graham Swindells, Deltic chief executive in a statement.
“The additional time granted will allow final work to be completed to ensure we get the best placed, best designed well to test this prospect - our work has only increased our excitement for a North Sea play that is proven in many parts of Europe.
“Despite the challenging times, the rigorous technical work means Pensacola has moved into well design and planning, while at the same time we have recently been provisionally awarded a series of new licences including the drill-ready Cadence Prospect in order to continue executing our strategy of building a 'conveyer belt' of North Sea exploration opportunities," he added.