Deltic Energy upbeat on increase in gas volumes at Selene
Natural resources company Deltic Energy announced a material increase in the estimated volume of gas compared to previous estimates, as well as a “significant” increase in the chance of success in relation to the Selene prospect, on Tuesday.
The AIM-traded firms iad the process comprised a “considerable amount” of work in relation to the existing reprocessed 3D seismic, and used an innovative technological approach to depth conversion, which was undertaken by a joint Deltic-Shell team.
Further work on the depositional environment, structural history, gas charge timing and reservoir quality prediction was also completed as part of the process.
Deltic said the results from that technical analysis indicated that the gas initially in place volumes associated with the preferred Selene interpretation had been significantly increased, with further potential upside recognised in the in-place resource calculations, while at the same time the geological chance of success was significantly improved.
Further work would focus on potential development scenarios, the estimation of recovery factors, and project economics, which are required to support the well investment decision before the proposed 2022 drilling activity.
“We are delighted at the ongoing collaboration with Shell on the Selene licence and that the detailed work being undertaken by the joint Deltic-Shell technical teams is supporting and enhancing the earlier work completed by Deltic,” said chief executive officer Graham Swindells.
“The significantly increased gas volumes and decreased risk profile further cements the importance of Selene as one of the largest undrilled Leman Sandstone structures in this mature play.
“We are encouraged by the level of technical and human resources being deployed on this project by Shell and will continue to work with them towards securing a firm drilling commitment for the proposed 2022 well on Selene.”
At 1238 BST, shares in Deltic Energy were up 1.82% at 0.87p.