Anglo-Dutch oil major Shell has delivered processed 3D seismic data for the Pensacola Zechstein Reef to its partner Deltic Energy.
Shell farmed into the Pensacola play in February last year. In return for funding a 3D seismic acquisition programme covering more than 400 square kilometres, and the subsequent processing and study, Deltic transferred a 70% stake in the play and operatorship to Shell, which has extensive upstream experience, in addition to making lubricants including agricultural oil.
Thanks to Shell’s expertise, the partners now have a ‘robust image’ of the play, and it would seem that the Pensacola Zechstein Reef features a substantial undrilled structure that they say is comparable to the Ossian play, which has already been tested and found to potentially host high-quality reservoirs.
Shares in Deltic Energy, which used to be called Cluff Natural Resources, were trading up about 5% following the announcement. The company has investments in a number of UK offshore oil and gas assets, and focuses on exploiting their exploration potential.
Deltic Chief Executive, Graham Swindells, said about the development:
“It is great to get this new data over the Pensacola prospect and we are looking forward to continuing our work with Shell to progress the prospect towards drilling, which we expect to take place in the second half of 2021.”
He also emphasised the value of having a prestigious partner like Shell, with its expertise, resources and technologies, when looking to develop a prospective play like Pensacola.