Deltic Energy PLC (AIM: DELT) has announced the mobilization of the Valaris 123 drill rig for the Selene well. The rig was mobilized on 21 July and is anticipated to arrive shortly at the Selene location in the Southern North Sea.
Drilling operations are expected to commence soon after arrival and will continue for approximately 90 days. The well is intended to gather crucial information regarding reservoir quality and gas composition, which will inform a potential field development decision.
It is not expected that a full well test will be necessary to achieve this goal; therefore, the well will be plugged and abandoned upon completion.
“We are excited to commence drilling operations on Selene with our partners Shell and Dana, for which we are fully carried for the estimated success case cost,” stated chief executive Graham Swindells.
“This will be the first exploration well spudded on the UKCS in 2024 and marks an important milestone for Deltic.
“The Selene prospect represents a high-impact, infrastructure-led exploration opportunity, demonstrating the strength and depth of the portfolio we have developed over the past few years, which we estimate to be worth multiples of the company’s current market value.”
Swindells added, “Despite ongoing political uncertainty, we look forward to commencing operations and continue to believe that exploration on the UKCS plays a crucial role in supporting energy security, providing vital jobs within the energy sector, and offsetting higher carbon intensity imported energy.”
Deltic estimates that the Selene structure contains gross P50 prospective resources of 318 billion cubic feet (BCF).
The company is fully carried for its 25% working interest in the Selene well up to a gross success case cost of $49 million, which exceeds the operator’s success case well authorization for expenditure of $47 million.
