LONDON (Reuters) - Deltic Energy said on Wednesday the Pensacola gas field in the British North Sea, majority-owned and operated by Shell (LON:RDSa), 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.