Shares of Deltic Energy Plc rose about 30% after it announced a “significant” increase in its estimate of oil and gas resources for the Pensacola discovery in the North Sea.
Deltic said the news represents “one of the most significant discoveries in the North Sea in many years.”
The firm said: “This increase, based on Deltic’s post well analysis, is nearly double initial expectations.”
The Pensacola discovery in the southern North Sea is majority-owned and operated by Shell.
Deltic said: “Following post well analysis, Deltic now estimates the Pensacola structure to contain gross P50 initially in place volumes of gas and oil of 342 million barrels of oil equivalent.
“This analysis indicates Pensacola may contain almost double the volume of recoverable gas and oil than originally thought, with Deltic now estimating total gross P50 Estimated Ultimate Recovery (EUR) of c.99mmboe, up from 50mmboe immediately after well completion.
“Significantly, Deltic now estimates Pensacola contains material volumes of oil, representing c. 30% of the combined recoverable hydrocarbons.
“Work is progressing with partners to develop the appraisal and development programme for Pensacola with an appraisal well continued to be targeted for late 2024.
“Deltic is pursuing monetisation options for the discovery in line with its strategy.”
Deltic Energy CEO Graham Swindells said: “The Pensacola oil and gas discovery is transformational for Deltic.
“Well data indicates that Pensacola contains close to double our original estimate, representing one of the most significant discoveries in the North Sea in many years.
“This is an outstanding result for Deltic. Our success to date reinforces the quality of our technical team and the Deltic model of taking licences from award through to successful drilling.
“We look forward to working with our JV partners to continue moving this exciting asset through the appraisal phase and onward towards development.
“With the significant additions to our resource base, we will also continue to pursue monetisation options in line with our stated strategy.”