UK Pensacola Well Decision Slips

UK explorer Deltic Energy (formerly Cluff Natural Resources) said November 5 that operator Shell had successfully applied to the regulator Oil & Gas Authority for a short extension for its decision to drill the Pensacola prospect, it said November 5. The drilling itself remains on schedule for Q4 next year.

Deltic said the extra time was needed to analyse the seismic data fully, a process that Covid-19 has slowed down. However despite the bearish gas market conditions, Deltic said: "Shell... has reiterated to Deltic and the UK Oil and Gas Authority, its plan to drill the high impact, play opening Pensacola Prospect on Licence P2252."

Deltic also said the "seismic processing completed to-date and interpretations of the available data have demonstrated a robust image over Pensacola, which supports the prospectivity originally recognised by the joint venture at the time of the farm-in agreement." Well design work is underway and competitive scoping of the exploration well is in the process of being completed.

The seismic analysis has also shown the presence of chalk and "while this has no material impact on the reservoir, it requires more intensive seismic processing to improve image resolution."

Shell will continue to carry 100% of Deltic's costs until the well investment decision is made, Deltic said. CEO Graham Swindells said the work done so far "has only increased our excitement for a North Sea play that is proven in many parts of Europe. Despite the challenging times, the rigorous technical work means Pensacola has moved into well design and planning, while at the same time we have recently been provisionally awarded a series of new licences including the drill-ready Cadence Prospect in order to continue executing our strategy of building a 'conveyor belt' of North Sea exploration opportunities."