Shell, the energy giant, is gearing up for an ambitious two-well drilling campaign in the North Sea in 2024, focusing on the high-impact Selene and Pensacola prospects. This initiative, integral to advancing European energy security, is part of Shell's comprehensive site survey program in the North Sea, reflecting its commitment to pushing the boundaries of energy exploration.

Shell's exploration of the Selene gas prospect represents a strategic move into high-impact, low-risk opportunities. The positive well investment decision for Selene, made in July 2022, enabled Shell to assume operatorship, leading to rig selection and contracting. Geophysical site survey data from the summer is guiding the upcoming geotechnical survey in December 2023. These surveys ensure the safe installation of the rig at the selected well location, emphasizing meticulous planning for this high-stakes venture. Selene, one of the largest unapprised structures in the Leman Sandstone fairway of the Southern Gas Basin, holds estimated P50 prospective resources of 318 BCF of gas, with a geological success chance of 70%. With critical long lead items identified, Selene aims to commence drilling in Q3 2024.

Following the success at Pensacola, Shell achieved a "transformational gas discovery" at the Pensacola gas prospect in early 2023, revealing a P50 estimated ultimate recovery of 302 BCF of gas. Pensacola is hailed as the largest natural gas discovery in the North Sea in over a decade. Shell and joint venture partners are working on an appraisal strategy, with a positive well investment decision for an appraisal well expected in December 2023.

While the Pensacola appraisal well's planning is advanced, with site survey works scheduled for H1 2024, the overarching vision involves tandem drilling with Selene. Subject to regulatory approvals, the Pensacola appraisal well is slated for late 2024, ensuring a seamless transition from one groundbreaking endeavor to another.

Shell's intensive drilling campaign in the North Sea signifies a substantial investment in the future of European energy. The commitment to exploring and developing new gas resources underscores Shell's dedication to providing reliable and secure energy solutions.

Shell currently holds a Zacks Rank #3 (Hold). Investors seeking opportunities in the energy sector might consider better-ranked stocks like The Williams Companies (WMB), Core Laboratories Inc. (CLB), and Liberty Energy Inc. (LBRT), each with favorable Zacks Ranks.