Deltic Energy increases reserves at Pensacola North Sea prospect

Deltic Energy PLC increased its estimated oil and natural gas resources for the Pensacola discovery on License P2252 northwest of Breagh gas field in the Zechstein Reef play fairway, Southern North Sea.

The updated volumetric assessment of the Pensacola discovery was based on data collected from the 41/05a-2 well and the results of lab testing. The Pensacola discovery is now estimated to contain 342 MMboe P50 in-place gas and oil volumes (P90-to-P10 range = 148-650 MMboe).

While the expected presence of oil in the south of the prospect represents highly material upside, the discovered gas volumes in the northern part of the Pensacola prospect are better constrained and therefore the gas is still likely to be the initial focus of near-term appraisal and development activity.

Based on preliminary reservoir engineering work completed by Deltic, a range of potential development scenarios have been assessed to allow an estimation of recoverable volumes which could be produced from the Pensacola discovery. It has been assumed in all scenarios that hydrocarbons will be exported via a new offshore installation and a pipeline to Teesside, UK. Under these scenarios, Deltic estimates 99 bcf MMboe recoverable reserves (P90 to P10 range = 48-196 MMboe).

Interpretation work by the JV team following the post-well analytical program has reinforced the conclusion that thicker and better quality Hauptdolomite reservoir is present across the crest of the Pensacola Reef, which will be targeted in future appraisal and development drilling.

Hauptdolomite cores collected at the well location have an average porosity of 18.8% with a maximum permeability of 40 md (average of 6 md), better than the reservoir quality initially estimated from wireline logs.  Dynamic reservoir modelling by Deltic indicates that the reservoir quality encountered at the well would support commercial flow rates from horizontal wells, without requiring any improvement in reservoir quality up-dip.

Subject to JV and other regulatory approvals, the drilling of an appraisal well on Pensacola is targeted for late 2024. In parallel, the JV will undertake various studies to define optimal development plans for the discovery.

Shell PLC is operator of the license with 65% interest. Partners are Deltic (30%) and ONE-Dyas BV (5%).