Shell plc SHEL, the U.K.-headquartered energy giant, is engaged in an intensive preparation phase for a two-well drilling campaign in the North Sea scheduled for 2024. This campaign, targeting the high-impact Selene and Pensacola prospects, holds significant potential to contribute to European energy security. This move comes as part of an extensive site survey initiative in the North Sea, demonstrating Shell's unwavering dedication to advancing the frontier of energy exploration.

The Selene Well: A High-Impact Endeavor

Rig Selection and Preparatory Works: Shell's foray into the Selene gas prospect marks a milestone in the company's pursuit of high-impact, low-risk opportunities. The positive well investment decision for Selene, made in July 2022, paved the way for a seamless transition into the next phase of the P2437 license. Notably, the North Sea Transition Authority's approval catalyzed Shell's assumption of operatorship, a key step in the rig selection and contracting process.

Surveying the Selene Landscape: The data acquired following the completion of the initial geophysical site survey on Selene during the summer is now instrumental in shaping the upcoming geotechnical survey scheduled for the first half of December 2023. Such surveys play an important role in ensuring the safe installation of the rig at the selected well location, adding a layer of meticulous planning to this high-stake venture.

Unveiling Selene's Potential: The Selene project stands tall as one of the largest unapprised structures in the Leman Sandstone fairway of the Southern Gas Basin. Shell's partner estimates Selene to house approximately P50 prospective resources of 318 BCF of gas, with a geological chance of success at an impressive 70%. With critical long lead items, including casing, identified and procurement processes well underway, Selene remains committed to drilling in the third quarter of 2024.

Pensacola: A Transformational Discovery

The Unprecedented Gas Discovery: At the onset of 2023, Shell achieved what it indicated as a "transformational gas discovery" at the Pensacola gas prospect in license P2252. This discovery, made in February 2023, revealed a P50 estimated ultimate recovery of 302 BCF of gas, with 90 BCF net to Deltic. Pensacola appears as the largest natural gas discovery in the North Sea in over a decade, underscoring Shell's ability to unlock significant energy reservoirs.

Crafting an Appraisal Strategy: Buoyed by the success at Pensacola, Shell and its joint venture partners have diligently worked toward crafting a comprehensive appraisal strategy. With an emphasis on securing a positive well investment decision for an appraisal well in December 2023, Pensacola's trajectory mirrors the success story of Selene, albeit with its unique challenges and opportunities.