(Alliance News) - Deltic Energy PLC on Tuesday said it has made a positive well investment decision to drill the Selene gas prospect in the UK North Sea with Shell UK Ltd, part of Shell PLC.
Shares in Deltic were up 3.9% to 2.91 pence each in London on Tuesday around midday, meanwhile Shell shares were up 1.7% to 2,103.50p each.
Deltic, a London-based natural resources investing company, said Shell UK is its joint venture partner on Licence P2347, with Deltic owning a 50% interest in the well.
Together, they have made the decision to drill the high impact Selene gas prospect, situated in the UK southern North Sea off the north east coast of England.
Deltic said that the timing of the drilling is not yet confirmed, but it is currently designing and planning the drilling operation.
It estimates Selene to contain 318 billion cubic feet of prospective gas resources with a geological chance of success of 70%.
The company added that whilst it holds a 50% working interest in the license, it will pay for 75% of the drilling and testing costs, up to USD25 million. Further, as a result of the well investment decision, Shell will be appointed operator of the licence.
Deltic Energy Chief Executive Officer Graham Swindells 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 as well as demonstrating the success of our strategy to create a conveyor belt of exploration opportunities moving from licensing to drilling with world-class partners in place."
By Sophie Rose; sophierose@alliancenews.com
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