Shell’s Selene exploration well in the UK southern North Sea reached a total depth of 3,540 m last week and has encountered gas in a 160-m thick Leman sandstone section.
Initial observations are encouraging, said partner Deltic Energy. If analysis indicates a commercial discovery, the aim would be to go directly to field development planning with further appraisal drilling considered unnecessary to support a future development investment decision.
Deltic was more cautious about its activities elsewhere in the UK sector, due to the uncertain fiscal and operating environment.
This has prevented various companies that participated in the farm-out process for the Syros license P2542 in the central North Sea from committing to a transaction.
Deltic has sought a 12-month extension to Phase A of the license from the North Sea Transition Authority (NSTA) to allow for a period of re-engagement with interested parties, once future taxation plans are revealed in next week’s UK budget announcement.
But it appears that the NSTA is not supportive, with the license likely to expire at the end of November.
Deltic is also in negotiations concerning Phase A requirements for the Dewar license P2646 as it does not intend to incur further costs.
The company added that it would in the future look to deploy its core subsurface skills in other parts of the world, with an initial focus on projects with early cash flows and faster cycle times.
