UK major Shell (operator with 50%) has had good results from the 3.5-km well it drilled into the Selene prospect, licensee Deltic Energy said October 31. Initial indications point towards a high-quality dry gas, typical of production from adjacent fields, with no reported hydrogen sulphide.
Deltic now estimates Selene to contain gross P50 estimated ultimate recoverable of 131bn ft³, although even 100bn ft³ would be enough to make it profitable after the October 30 Budget. While 131bn ft³ is at the lower end of the range, it should be possible to pursue a simpler and cheaper development option that also produces more gas per well than expected, it said.
Deltic believes that the joint venture should be well placed to progress towards field development planning and a final investment decision on a future development without requiring a further appraisal well. Deltic will also re-evaluate the nearby Endymion prospect as a possible tie-in. Deltic and Dana Petroleum each have 25% equity.
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