Deltic Energy, the AIM-quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern and Central North Sea, has announced its audited results for the year ended 31 December 2022 ('FY 2022') and that it has released a results presentation. The results presentation is available on the homepage at the Company's website: www.delticenergy.com.
Highlights
- Transformational gas discovery at Pensacola on Licence P2252 in the Southern North Sea ("SNS").
- Pensacola represents one of the largest natural gas discoveries in the SNS in over a decade.
- Discovery contains P50 Estimated Ultimate Recovery of 302 BCF of gas (90 BCF net to Deltic).
- Well opens a new Zechstein play in this mature basin.
- Working closely with partners to progress this significant discovery to appraisal.
- Considering options in relation to Deltic's 30% interest including potential full or partial monetisation, and appraisal and development.
- Committed to second potentially high impact exploration well on the Selene prospect.
- Selene is the largest undrilled structure of its kind in this part of the SNS, with an estimated P50 recoverable resource of in excess of 300 BCF (150 BCF net to Deltic).
- Deltic anticipates that Selene will be drilled around the middle of 2024.
- Deltic-Capricorn Joint Venture ("JV") continues to progress technical work across five SNS licences. The key focus across the licences has been the Carboniferous play, in which multiple leads and prospects exist, as well as estimated significant volumes of Gas Initially in Place totalling in excess of 2 TCF.
- Completed the Phase A work programme to significantly de-risk the Syros prospect located in the Central North Sea, and a farm-out process, which commenced in late 2022, is ongoing.
- In September Deltic successfully raised £16 million via an oversubscribed equity placing and open offer.
- Net cash outflow from operations and investing activity for the year of £4.7 million (2021: £1.8 million), with £2.1 million relating to the drilling of the Pensacola well.
- Cash position of £20.4 million at 31 December 2022 (2021: £10.1 million) with no debt. Cash position of £15.1 million (unaudited) at 31 March 2023. The Pensacola well cost was £12.8 million of which £5.6 million of the total well costs are to be billed by the JV Partner subsequent to 31 March 2023.
- Participated in the UK's 33rd Offshore Licensing Round, with Deltic submitting multiple applications for blocks and part blocks in both the Southern and Central North Sea focused on bolstering and diversifying its portfolio.
Graham Swindells, Chief Executive of Deltic Energy, commented:
'2022 saw a fundamental shift in the delivery of Deltic's business model as the Pensacola well started drilling in November, subsequently being announced as a highly material gas discovery in February this year. Pensacola entirely vindicates our long-term business strategy of identifying high-value exploration assets at a very early stage and bringing them to fruition. We are now in the enviable position of deciding how best to appraise and develop this 300 BCF discovery alongside our partners, and delivering value for shareholders.
Moreover, we continue to advance our second potentially high-value asset, the Selene gas prospect, also located in the Southern North Sea. Together with our partner Shell, we expect to drill this similar sized prospect to Pensacola in the summer of 2024. With this drilling activity coupled with additional prospectivity from the rest of our portfolio and potential new licence awards, I believe the future looks extremely positive for Deltic, especially at a time when the UK should rightly be focused on its longer-term energy security.'
Click here for full announcement
Source: Deltic Energy
