Deltic Energy, the AIM-quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern North Sea, has received the required regulatory and partner consents in respect of the farm-out of a 25% interest in Licence P2437, containing the Selene Prospect, to Dana Petroleum (E&P) which was announced on 7 February 2024. The farm-out has therefore completed.
This transaction, in combination with the existing Shell UK carry, results in Deltic retaining a 25% non-operated interest in Licence P2437 and having no exposure to 2024 drilling and testing costs up to a cost cap of USD$49M (gross), which is in excess of current success case well cost estimates provided by the Operator.
Following the announcement of the rig contract for the Valaris 123 on 5 February 2024, the Selene well remains on track, with operations expected to commence in July 2024.
Graham Swindells, Chief Executive of Deltic Energy, commented:
'We are delighted to announce completion of the farm-out of Licence P2437 and formally welcome Dana to the joint venture. Well planning remains on schedule and we are looking forward to commencing Selene well operations with Shell and Dana in the summer. Our attention is now firmly focussed on drawing the Pensacola farm-out process to a successful conclusion and we look forward to updating the market in due course.'
Source: Deltic Energy
