(Alliance News) - Deltic Energy PLC on Monday announced it has made a positive well investment decision to drill the Pensacola prospect in the UK North Sea with Shell UK Ltd, part of Royal Dutch Shell PLC.
Deltic, a London-based natural resources investing company, said Shell UK is its joint venture partner on the P2252 licence, with Deltic owning a 30% interest in the well. The duo have confirmed to the UK Oil & Gas Authority that the contingent well commitment is now firm.
Shares in Deltic Energy were up 12% at 1.87 pence in London on Monday. Shell 'A' shares were down 0.7% at 1,440.40 pence, amid lower spot oil prices.
Deltic said the drilling of the well has the potential to be "transformational" for it, and is a "vital" step in evaluating the prospective Zechstein reef play and revitalising exploration in the southern North Sea.
Shell UK said it expects the well to be drilled in May 2022, allowing the joint venture to take advantage of a drilling unit that will be contracted as part of a multi well drilling campaign.
"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. 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," said Deltic Energy Chief Executive Graham Swindells.
By Zoe Wickens; zoewickens@alliancenews.com
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Deltic Energy (DELT)