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 been provisionally awarded two licences over three part blocks covering approximately 226 km2 by the North Sea Transition Authority ('NSTA') in Tranche 2 of the UK's 33rd Offshore Licensing Round.
The blocks provisionally awarded to the Company in Tranche 2 are as follows:
All blocks are being provisionally awarded to the Company on a 100% equity position.
Blocks 22/24f (part) & 22/25e (part) - Dewar
This provisional award contains the Dewar Prospect, which has previously been licenced and matured by Deltic. Dewar is seen as a low-risk prospect in the Forties Sandstone, located close to existing and proposed new infrastructure associated with the redevelopment of the Murlach Field (formerly known as Skua).
The work programme associated with the initial phase of the licence is restricted to upgrading the seismic data sets held by the Company at relatively low cost and is focussed on providing greater confidence around prospect volumetrics and risk.
Block 29/4b - Central Graben
Block 29/4b represents the residual part of a larger application which included the contiguous Block 29/3b. Block 29/3b, which was provisionally awarded to Shell U.K. Ltd in Tranche 1 of the 33rd Round, was considered the most prospective part of the application area and the Company will now consider if there is sufficient technical justification to accept Block 29/4b in isolation.
33rd Licensing Round - Tranche 3
The NSTA has advised that there will be a further tranche of awards which will include licences in the Southern North Sea Gas Basin which was the focus of the Company's licence application efforts in the 33rd Round. Firm guidance from the NSTA on the timing of Tranche 3 awards has not yet been communicated.
Graham Swindells, CEO of Deltic, commented:
'These provisional awards are a direct result of the hard work that our technical team put into the application process and we look forward to announcement of Southern North Sea Tranche 3 awards in due course. The blocks awarded to date have the potential to further diversify our asset base and provide optionality within our portfolio. Deltic is committed to exploration within the UK and a regular, predictable licensing process remains critical to maintaining domestic gas production, supporting jobs and delivering energy security.'
Source: Deltic Energy
