Deltic Energy and Shell UK sign rig contract for North Sea exploration

In a significant development for the energy sector, Deltic Energy Plc, an AIM-quoted company specializing in natural resources investment with a focus on high impact exploration and appraisal portfolio in the Southern North Sea, has announced a major step forward in its operations. Shell UK Ltd, operating Licences P2437 and P2252, has confirmed signing a rig contract with Valaris for the drilling of the Selene exploration well and the Pensacola appraisal well, marking a pivotal moment for Deltic Energy’s drilling schedule in the June-July 2024 period.

The contract involves the use of the Valaris 123, a heavy-duty jack-up rig, to drill Selene and Pensacola in a sequence. This arrangement is expected to bring operational efficiencies by being part of an extended drilling program. The confirmation of the rig contract signifies a key milestone in the preparation for drilling at the Selene gas prospect and the appraisal well on Pensacola, following the discovery last year.

Graham Swindells, Chief Executive of Deltic Energy, expressed his enthusiasm for the agreement, stating, “Signing of the rig contract coupled with the firming up of the drilling schedule is another important step for Deltic as we move further down the runway towards the drilling of Selene and Pensacola.” He highlighted the importance of securing a high-quality rig for back-to-back drilling of Selene and Pensacola as a key milestone, setting the stage for an active and exciting year for Deltic.

The operational update follows the successful permitting approval of the geophysical site survey on Pensacola, with mobilization to the site already underway. The survey is expected to last approximately one month, further advancing the project’s development.

The collaboration between Deltic Energy Plc and Shell UK Ltd underscores the strategic importance of the Southern North Sea for natural gas exploration and appraisal. The drilling of the Selene and Pensacola wells represents a significant investment in the future of UK energy resources, with potential implications for the energy market and stakeholders. This partnership not only demonstrates the commitment of both companies to advancing energy exploration in the region but also highlights the potential for significant discoveries that could bolster the UK’s energy supply.