Deltic Energy said partner Shell has committed to drill an exploration well at a second of its prospects in the North Sea.
Selene, the target, is a gas prospect on Licence P2347 in the UK Southern North Sea off the northeast coast of England.
The timing of the drilling has yet to be decided but the North Sea Transition Authority, the UK regulator, has been informed of the decision, Deltic said, which will facilitate the licence entering its next phase.
Deltic holds a 50% working interest in the licence but will be carried for 75% of the costs of drilling and testing of the Selene well up to total of US$25 mln.
Shell will be the operator of the licence, which Deltic said is one of the largest unappraised structures in the Leman Sandstone fairway of the Southern Gas Basin.
Selene is estimated to contain gross P50 prospective resources of 318bn cubic feet (BCF) with a geological chance of success of 70%.
Shell and Deltic are already in partnership on the North Sea’s Pensacola prospect where an exploration well is scheduled to get underway (spud) next month.
Deltic also has an exploration partnership over several of its other North Sea licences with Capricorn Energy.
“The commitment to drill this material, high impact, low-risk gas prospect is another highly significant milestone for Deltic and our team," Graham Swindells, Deltic’s chief executive, said.
"Adding another committed well to our programme, following recent confirmation that Pensacola will be drilled in September, represents further endorsement of the quality of Deltic's assets."