Shell PLC (LSE:SHEL, NYSE:SHEL) has installed its rig on the Pensacola location in the North Sea and drilling operations have now commenced, partner Deltic Energy PLC (AIM:DELT) has reported.
Deltic has a 30% working interest in Licence P2252 which contains Pensacola and is located in the Zechstein Reef play fairway in the Southern North Sea.
Pensacola is a natural gas field estimated to contain gross P50 prospective resources of 309bn cubic feet (BCF)
The drilling operations are expected to last between 60 and 90 days and the well has been planned to be plugged and abandoned at the completion of operations.
In a statement, Graham Swindells, Deltic’s chief executive, said: “Pensacola is a high impact, potentially play opening prospect and represents what we hope will be the first of many wells as the company continues to implement its strategy to identify opportunities and discover gas to support the UK's energy needs."