By Scott Wright
SHARES in Deltic Energy leapt by nearly 50 per cent as it highlighted a key milestone had been reached in the development of a key North Sea prospect.
The oil and gas minnow said that joint venture partner Shell had encountered hydrocarbons on the Pensacola exploration well in the Southern North Sea. Shell is now recommending that a full well test is undertaken to evaluate the commerciality of the Pensacola prospect and to update the geological model.
Deltic has attracted attention in recent years by persuading major players such as Shell and Capricorn Energy (formerly Cairn Energy) to buy into development prospects it has secured licences for in the Southern and Central North Sea.
The Pensacola prospect is contained within the P2252 licence, in which Shell has a 65% working interest and is also the operator. Deltic holds a 30% interest and ONE-Dyas 5%.
Interest in the North Sea has been reinvigorated in recent months amid the fall-out from Russia’s war on Ukraine, which has focused attention on improving domestic gas supplies and reducing reliance on imports.
Graham Swindells, chief executive of Deltic Energy, said: “We are very pleased to have encountered hydrocarbons in the Pensacola exploration well at this intermediate stage of well operations.
“We now look forward to working with the operator on the well testing programme and will update the market once that programme is completed.”
Deltic said it would provide a drilling update announcement in respect of Pensacola on completion of well testing which is expected to take around 30 days.
Shares in Deltic closed up 46.3%, or 0.92p, at 2.89p.
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