P2437 - Selene

The Selene discovery well, drilled Q3 2024, discovered 131 BCF (gross P50 recoverable) of gas in the Leman Sandstone.

The Selene discovery ranks as one of the largest gas discoveries in the UK SNS in the last 10 years and is located in close proximity to pre-existing gas export infrastructure connected to the UK National Transmission System.

The Shell operated licence will move into its 2nd term at the end of 2024 and the JV has committed to the various workstreams required to support a future Final Investment Decision on a potential development of the Selene discovery.

Equity

25%

Location

Southern
North Sea

Size

228km²

Operator

Shell

Resource Summary

Licence Ref Deltic Equity Prospect Type PRMS Status Net Prospective Resources (BCF) Chance of Success %
P90 P50 P10
P2437 25% Selene Permian Discovery 23.8 32.75 53.6 100
Endymion Prospect 11.1 17.6 26.4 27

Selene Prospect

The Selene discovery is located on the northern limb of the Sole Pit Basin inversion axis and takes the form of a NW-SE elongated closure. It is formed by two south-west dipping fault blocks.

It has a Leman Sandstone Formation reservoir, which was deposited during the Rotliegend period. The recent 48/08b-3Z well has proven good quality sands and gas saturations at Selene, in line with regional trends. 

The discovery is 18km from the Barque Field, which is expected to be the gas export route, via the Shell Clipper complex to the Bacton Gas Terminal in East Anglia. 

In February 2024, Deltic farmed down a further 25% of its interest in P2437 to Dana Petroleum (E&P) Limited. This transaction, in combination with the existing Shell carry, results in Deltic retaining a 25% non-operated interest in Licence P2437 and having no exposure to 2024 drilling and testing costs up to a cap in excess of current success case well cost estimates ($47M), provided by the Operator.

The deal also includes $500k in cash on completion in relation to back costs incurred by Deltic. Dana will carry Deltic for its residual cost exposure to the Selene well (after utilisation of the existing carry from the Shell farm-out) to a value of $5M, and $6M in a success case.

Dana will pay its 25% share of costs from 1 January 2024 and completion of the deal was on 2 April 2024.

Shell Farm-in to P2437

On 30th April 2019 the Company announced that Shell exercised their option on Licence P2437 and specifically the Selene prospect. Following completion of the transaction in August 2019, Deltic have transferred a 50% working interest in Licence P2437 to Shell in return for a cash sum of USD$600,000 and Shell funding 75% of the costs of the first exploration well to be drilled on the licence up to a gross well cost of USD$25M. In July 2022 the Partnership committed to drill an exploration well on the Selene structure.

Endymion Prospect

Straddling blocks 48/08b & 03, the Endymion prospect is a structural closure in the Leman Sandstone. The structure is formed by the extension of the fault system that creates the Mimas field, on strike to the southeast and is separated from Mimas by a low. With success at Selene, Endymion is seen as a follow-on opportunity due to its proximity to infrastructure.

Next Steps

  • Post well analysis to integrate data from the recent 48/08b-3Z discovery well
  • Work towards Field Development Planning and FEED
  • Make a Final Investment Decision in 2026