DELTIC Energy has announced plans to drill for gas in the Selene field – the first exploration well in the North Sea this year amid unprecedented political uncertainty.
UKCS exploration has ground to a halt this year amid fears about Labour’s plans to hike the windfall tax and outlaw future exploration.
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However, Deltic has just announced to the market that it has mobilised the Valaris 123 drilling unit, which is now on its way to the Selene prospect, one of the biggest structures in the Leman Sandstone Fairway that has yet to be appraised.
Drilling operations are expected to commence shortly, with planned operations lasting approximately 90 days. Deltic said it will make a further announcement once drilling has commenced.
Deltic has a 25% stake in the field, as does Dana Petroleum, with the rest owned by operator Shell.
Graham Swindells, CEO of Deltic, said companies like his have a “huge role” to play in providing the UK with energy security and a cleaner alternative to importing hydrocarbons.
“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,” he said.
“This will be the first exploration well spudded on the UKCS in 2024 and is an equally important milestone for Deltic. The Selene prospect is a high impact infrastructure-led exploration opportunity which demonstrates the strength and depth of the portfolio that we have built over the last few years, and which we estimate to be worth multiples of the Company’s current market value.
“Despite ongoing political uncertainty, we look forward to commencing operations and continue to believe exploration on the UKCS has a hugely important role to play in supporting the provision of energy security, vital jobs within the energy sector and offsetting higher carbon intensity imported energy.”
