Deltic Energy

Deltic has announced a significant gas and oil discovery at Pensacola on Licence P2252 in the Southern North Sea.

Highlights

• Pensacola could represent one of the largest natural gas discoveries in the Southern North Sea in over a decade.
• Deltic pre-drill volumetrics for Pensacola confirmed by well – P50 Estimated Ultimate Recovery (‘EUR’) of 302 BCF.
• Well opens a new Zechstein play in this mature basin.
• Flow test results inline with Deltic’s pre-test expectations based on the reservoir parameters derived from the well.

Graham Swindells, Chief Executive of Deltic Energy, commented:–
“Deltic’s first exploration well at Pensacola has resulted in a highly positive outcome and, at approximately 300 BCF, would represent one of the largest natural gas discoveries in the Southern North Sea in over a decade.  This discovery is a major milestone in the development of our Company as we continue to execute our exploration led strategy and progress our portfolio of high-quality drilling opportunities as we seek to create value for our shareholders.   

We believe that the Pensacola discovery will open a new Zechstein play in this mature basin and highlights the remaining potential of the North Sea as a source of further discoveries which can provide domestically produced natural gas, supporting UK energy security while we transition toward a Net Zero economy.

As we continue our preparations for drilling the Selene well, we are now looking forward to working with our partners as we continue to progress this exciting and significant gas discovery at Pensacola, and look forward to updating the market on our future plans.“

It looks from what we have seen in this announcement that this is a monster of a discovery and potentially much bigger than the company can say today. 164 Bcf would be ‘ a huge beast of a find’ and significant to not just the companies but also for the country.

Many congratulations to the management who have been determined as could be over the last few years and this is a monument to the patience of them and of course the shareholders. Partner choice was also critical in this respect which makes delivering the find easier without having to go through farm-out process. 

Jadestone Energy

Jadestone has provided the following update on the Montara Project offshore Australia.

On 18 January 2023, the Company disclosed that DNV’s independent review of Jadestone’s remediation plans and operational readiness for the Montara Venture FPSO had been completed and submitted to NOPSEMA, as required by the General Direction issued to the Company in September 2022.  NOPSEMA’s review has now been concluded and the General Direction closed.

Both hull and tank repair activity and the scheduled 4-yearly planned topsides maintenance activities on the Montara Venture FPSO are progressing well, with operational readiness and production restart still targeted to occur later in February 2023.

Paul Blakeley, President and CEO commented:
“The closing of the General Direction is a very important step towards restarting production at Montara. As previously reported, we have elected to carry out most of this year’s planned annual shutdown work in parallel with the tank work to maximise efficiency during this period. The combined work scope is making good progress and when completed, we will declare operational readiness and deliver a safe restart of production, which is still targeted before the end of this month.

I would like to use this opportunity to recognise the onshore and offshore teams working tirelessly on Montara, across the Christmas and summer holidays to get Montara operationally ready again. Jadestone is looking to ensure Montara delivers safe and reliable operations going forward as well as capture the significant value we believe this asset holds.”

Montara back imminently I assume.

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