Business
Positive Well Investment Decision on Pensacola
Positive Well Investment Decision on Pensacola.
About this update from Deltic Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7142T\n Deltic Energy PLC\n 29 March 2021\n \n \n \n \n The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 \n \n which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018 (\"UK MAR\")\n \n . With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n \n \n \n \n 29 March 2021\n \n \n \n \n \n Deltic Energy Plc / Index: AIM / Epic: DELT / Sector: Natural Resources\n \n \n \n \n \n Deltic Energy Plc (\"Deltic\" or \"the Company\")\n \n \n \n \n \n Positive Well Investment Decision on Pensacola\n \n \n \n Deltic Energy Plc is pleased to confirm that it and Shell U.K. Limited (\"Shell\" or \"the Operator\"), its Joint Venture Partner on Licence P2252, have made a positive well investment decision to drill the high impact Pensacola Prospect on Licence P2252 in the UK Southern North Sea. Shell and Deltic have subsequently confirmed to The Oil and Gas Authority that the contingent well commitment is now firm.\n \n \n The drilling of this key well on Pensacola has the potential to be transformational for Deltic and is a vital step in evaluating the highly prospective Zechstein reef play which in turn has the potential to revitalise exploration in the Southern North Sea.\n \n \n Following re-interpretation of the new 3D seismic data acquired over the prospect, \n Deltic estimates that the Pensacola Prospect contains gross P50 Prospective Resources of 309 BCF (with a P90-P10 range of 39 BCF to 1,181 BCF) which will rank Pensacola as one of the highest impact exploration targets to be drilled in the gas basin in recent years. Significantly, the \n Shell/Deltic JV's (\"the JV\") \n new interpretation of the 3D seismic data has also resulted in a much-improved view of the geological chance of success associated with the prospect which has increased materially from 20% to 55%. \n \n \n The Operator expects the well to be drilled in May 2022 and this timing allows the JV to take advantage of a drilling unit that will be contracted by Shell as part of a multi well drilling campaign which in turn brings advantageous day rates a...