Shell takes FID on Pensacola well
Shell has taken a final investment decision on drilling a well at the Pensacola gas prospect in the UK North Sea, its London-listed partner Deltic Energy reported on March 29.
The well is expected to be drilled in May next year, using a rig that will be contracted by Shell as part of a multi-well drilling campaign. This will help ensure lower day rates and operational efficiencies.
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Re-interpretation of 3D seismic data acquired at the site places Pensacola's P50 prospective gas resources at 309bn ft3, Deltic said, ranking it as one of the highest impact exploration targets in the gas basin in recent years. The review of the seismic data has also increased the estimated chance of success from 20% to 55%.
Shell farmed into the Pensacola prospect in May 2019, acquiring a 70% interest in return for covering Deltic's share of costs. The pair had hoped to drill the well in the fourth quarter of this year, but delayed taking a decision on drilling to give themselves extra time to analyse the seismic data.
"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," Deltic CEO Graham Swindells said in a statement. "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."