Deltic Energy estimates Shell-operated Pensacola UK gas field bigger than thought

Deltic Energy

12/07/2023 11:58

LONDON, July 12 (Reuters) - Deltic Energy  DELT.L  said
on Wednesday the Pensacola gas field in the British North Sea,
majority-owned and operated by Shell  SHEL.L , might contain
nearly twice as many hydrocarbons as initially thought.
    Once one of the world's key energy sources, Britain's North
sea oil and gas output is poised to slump further after
shrinking by two-thirds in the past 20 years, leaving the
country increasingly dependent on imports.
     "(Our) analysis indicates Pensacola may contain almost
double the volume of recoverable gas and oil than originally
thought, with Deltic now estimating total gross (Estimated
Ultimate Recovery volume) of c. 99 million barrels of oil
equivalanet," Deltic said.
    This includes 320 billion cubic feet of gas, it said.
    Deltic's analysis is part of a standard process of
evaluation of hydrocarbons before an oil or gas field is
developed.
    The hydrocarbons, likely with an initial focus on gas, might
be exported via pipeline to the Teesside hub in northeastern
England, the company said, adding it was also open to selling at
least part of its 30% stake in the field.
    A Shell spokesperson said the company was still "progressing
(its) technical evaluations of the Pensacola prospect and
considering the next stages for appraisal."    
    Britain has imposed windfall taxes on oil and gas producers
in the wake of bumper profits amid rising household energy
bills, a move that the industry says will stifle investment.

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 (Reporting by Ron Bousso, writing by Shadia Nasralla; Editing
by Devika Syamnath)
 ((Shadia.Nasralla@thomsonreuters.com; Reuters Messaging:
Reuters Messaging: shadia.nasralla.reuters.com@reuters.net))