Deltic Energy PLC announced on Tuesday that the Valaris 123 drilling unit is on its way to the Selene well in the Southern North Sea.
Deltic Energy is a London-based natural resources investing company focused on the Southern and Central North Sea. It said the drilling unit was mobilised on Sunday from its current location in the Central North Sea and is expected to arrive at the Selene well location in the Southern North Sea shortly, depending on weather conditions.
Deltic said that the drilling is set to start at Selene shortly and will last around 90 days.
The company estimated that the Selene structure contains gross P50 prospective resources of 318 billion cubic feet in the Leman Sandstone reservoir. The Leman Sands reservoir is the key reservoir in all adjacent gas fields including Barque, Clipper, and West Sole.
Deltic agreed farm-outs with Shell UK Ltd in 2019 and Dana Petroleum Ltd in February this year. The firm is carried for 25% working interest in the Selene well, up to a gross success case well cost of $49 million.
Chief Executive Officer Graham Swindells said: ‘We are excited to be commencing drilling operations on Selene with our partners Shell and Dana, and for which we are fully carried for the estimated success case cost’.
Deltic Energy shares were up 7.0% at 11.50 pence per share in London on Tuesday afternoon.
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