Deltic Energy PLC and Shell UK Ltd decided to drill the high impact Pensacola prospect on Licence P2252 in the UK Southern North Sea.
Shell and Deltic have subsequently confirmed to The Oil and Gas Authority the contingent well commitment is now firm.
The drilling of this key well on Pensacola has the potential to be transformational for Deltic and is a vital step in evaluating the highly prospective Zechstein reef play which in turn has the potential to revitalise exploration in the Southern North Sea.
Following re-interpretation of the new 3D seismic data acquired over the prospect, Deltic estimates the Pensacola prospect contains gross P50 prospective resources of 309 billion cubic feet of gas, which will rank Pensacola as one of the highest impact exploration targets to be drilled in the gas basin in recent years.
A new interpretation of three-dimensional seismic data also resulted in a much-improved view of the geological chance of success associated with the prospect.
Shell, as operator of the joint venture, expects the well to be drilled in May 2022. Deltic remains fully funded for its 30% working interest in the well.
"Confirmation of this well investment decision represents the achievement of another key milestone as we continue to execute our exploration-led strategy in the Southern North Sea with our world class partner, Shell,” said Graham Swindells, chief executive of Deltic Energy.
“The rigorous re-evaluation of the Pensacola prospect has validated and reinforced the fantastic work of our technical team and their initial view that the Pensacola prospect, and the Zechstein play as a whole, represented a significant missed opportunity in the Southern North Sea. Well planning is already underway, and we look forward to providing regular updates as we progress through the planning phase towards the commencement of operations, in addition to continuing to mature our other prospects, including Selene, towards drilling."