Wedoany.com Report-Oct 31 , A Shell-led joint venture has confirmed the first exploration discovery in the UK North Sea this year with the Selene gas prospect, and should be well placed to progress towards field development planning.
The well proved up a 160-metre thick section of Leman sandstone.
Subsequent wireline logging and fluid sampling confirmed the presence of a live gas column above a gas-water contact at 3370 metres depth, according to joint venture partner Deltic Energy.
Analysis then pointed towards a maximum gas column of 100 metres, with initial indications of a high-quality dry gas, with no reported hydrogen sulfide.
Deltic estimated Selene contains gross estimated ultimate recoverable resources of 131 billion cubic feet of gas, which is at the lower end of pre-drill estimates.
However, the resources are in a high quality sand that should support a simpler and cheaper development option with greater gas production per well than was envisaged pre-discovery.
The jack-up drilling rig Valaris 123 is expected to be demobilised towards the end of next week.
Deltic said it believes 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".
Andrew Nunn, Deltic chief executive, said: “Although we are predicting recoverable volumes at the lower end of pre-drill estimates, the improved quality of the B-Sand and increased resource concentration should support a simpler development with enhanced economics due to reduced Capex and Opex requirements."
"We are looking forward to engaging with (JV partners) Shell and Dana as we work through the customary post-well analysis and preparation of a plan which will move the Selene discovery towards development over the coming year. We continue to believe that the asset can create material value for our shareholders.”
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