P2437

P2437 is a 30th Round licence situated in the Permian aged Lower Leman Sandstone play fairway, on the eastern edge of the Sole Pit Inversion and contains the Selene Prospect.  Selene is one of the largest undrilled Permian structures in the SNS with gross P50 prospective resources of 291 BCF.  The licence was the subject of a farm-in by Shell in 2019 and a well investment decision is expected to be taken during 2020.

Block Details
Licence No: P2437
Award Date: 01/10/2018 (Phase A – 4 years)
Blocks: 48/08b
Area: 228km2
Equity position: 50% (Shell 50%)

Selene Prospect

The Selene prospect is located on the northern limb of the Sole Pit Basin inversion axis and takes the form of a NW-SE elongated closure. The prospect is formed by two south-west dipping fault blocks, truncated at the NW region by De Keyser faults running SW-NE.

Well 48/08b-2 was drilled down-dip of the Selene prospect and was drilled near or on major faults, attributing to its lower reservoir quality than regional trends. During uplift these faults likely transmitted pore fluids saturated with carbonates etc. from Z1 and Z2 directly above the Rotliegendes, which led to both ferroan and non ferroan dolomite precipitating into the reservoir, resulting in 48/08b-2 to be a classed as a dry well despite seeing up to 4.9% gas peaks in the Leman Sandstone.

Shell U.K. Ltd Farm-in to P2437

On 30th April 2019 the Company announced that Shell U.K. Ltd 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 the first exploration to be drilled on the licence up to a gross well cost of USD$25M.

Sloop Discovery

Well 48/08A-1 well discovered Sloop in 1989, a Lower Leman gas bearing sand in a heavily faulted structure. A 209.7m gross Leman Sandstone was encountered with certain sections reaching 12% porosity. Log analysis suggests a gas-water contact at 2908m TVDSS. The discovery has a gas initially in place of 17 to 54 BCF.

Endymion Prospect

Straddling block 48/08b and block 48/03 the Endymion prospect is a structural closure at Leman Sandstone. The structure is formed by the extension of the fault system that controls the Mimas field on strike to the southeast and is separated by a graben from Mimas, therefore likely to be an offset to Mimas. In addition, the proximity to infrastructure enables opportunities for a tie-back option.

Rig and Jib Lead

The Rig and Jib Lead is a three-way dip closure against north-west trending normal faults. The Rig and Jib Lead can be separated into two separate culminations. The Rig Lead independently has an aerial closure of approximately 8km2, in comparison the Jib Lead has an area of 4km2.

Resource Summary

Licence Ref DELT Equity Prospect Type PRMS Status Net Prospective Resource (BCF) Risk Factor %
P90 P50 P10
P2437 50% Sloop Permian Discovery 4 9 19 100
Selene Prospect 53 146 344 39
Endymion Lead 18 24 31 27
Rig and Jib Lead 6 15 29 35