By Mark Williamson
NORTH Sea-focused Deltic Energy has said it expects to start drilling work on a key gas prospect with Shell in coming weeks.
Deltic said Shell has indicated that preparations are under way to move a rig to the site of the Pensacola prospect with drilling expected to start in mid-November.
The results of the well will be watched closely in the North Sea oil and gas industry amid hopes that it could prove there are still big finds to be made in the area.
The surge in gas prices following Russia’s assault on Ukraine has underlined the potential value of North Sea resources, which could be used to help reduce the UK’s reliance on imports.
The UK Government recently launched a North Sea licensing round which it hopes will generate strong interest among industry players.
Deltic looks likely to bid for more licences in the round.
A spokesperson for the firm said yesterday: “ Deltic is actively working on applications with a view to growing its portfolio of prospects and potential drilling opportunities.”
Deltic reckons Pensacola is one of the highest impact exploration targets to be drilled in the Southern North Sea gas basin in recent years.
Shell bought into the prospect in 2019 in a deal that provided a big vote of confidence in Deltic, a relative minnow in the industry. Deltic was known as Cluff Natural Resources at the time. In March last year Shell decided to proceed with a well on Pensacola, in spite of the slump triggered by the fallout from the pandemic. In July Deltic agreed with Shell to drill a well on the Selene gas prospect in the Southern North Sea.
Deltic is working on a North Sea exploration programme with Capricorn Energy, which bought into acreage it held . The Deltic spokesperson said work has not been affected by the merger talks Edinburgh-based Capricorn is having with Israel’s NewMed Energy.
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