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 interim results for the six months ended 30 June 2024.
Highlights
- Farmed down a 25% interest in Licence P2437 including the Selene prospect to Dana Petroleum (E&P) Limited ("Dana"), resulting in Deltic now being fully carried for the estimated success case cost of the well.
- The Shell operated Selene exploration well, targeting Gross P50 Prospective Resources of 318 BCF in the UK Southern North Sea, was spudded on 28 July. Operations are expected to take approximately 90 days from spud and the Company will update the market as appropriate.
- Deltic accepted two out of the four licences provisionally awarded by the North Sea Transition Authority ("NSTA") in the UK's 33rd Offshore Licensing Round. Both licences contain attractive low risk, low cost, infrastructure led exploration opportunities with nominal capital commitments in Phase A of the licences.
- On 10 June Deltic notified its Joint Venture ("JV") partners on Licence P2252, containing the Pensacola discovery, of the Company's intention to withdraw from the licence.
- Deltic has now reached agreement with the JV partners on Licence P2252, limiting the Company's liabilities associated with withdrawal from licence P2252 to £1.9 million with payment of circa 50% of this amount deferred for a period of 24 months.
- Cash position of £3.7 million at 30 June 2024 (31 December 2023: £5.6 million)
Graham Swindells, CEO, commented:
'There is no doubt that the first half of the year has been one of the most challenging periods for the Company since its inception, with highly publicised fiscal and political pressures impacting companies operating across the UK's domestic oil and gas sector. Despite these unprecedented headwinds, the Company continues to make significant commercial and operational progress, which has resulted in a farm-down to Dana which limits our potential cost exposure to the high impact Selene exploration well which is currently being drilled, as well as the award of two new UK licences located close to key production hubs in the Central and Southern North Sea.
Despite our necessary withdrawal from Pensacola, Deltic remains in a strong position to extract significant value for shareholders from our existing UK asset portfolio over the coming months and years. While limiting our cost exposure to UK exploration, the Company remains committed to continuing its exploration-led growth strategy and is actively evaluating investment opportunities in other jurisdictions where we can leverage our team's core strengths and where a more supportive approach to the future oil and gas exploration and development prevails.'
Source: Deltic Energy
