Deltic Energy ends UK North Sea JV with Capricorn (updated)

Deltic Energy

27/07/2023 08:04

(Recasts with company background, CEO quote)
       July 27 (Reuters) - UK North sea focused oil explorer
Deltic Energy  DELT.L  on Thursday terminated its Southern North
Sea joint venture (JV) with Capricorn Energy  CNE.L  after the
latter's decision to exit all operations outside Egypt. 
    Capricorn Energy, which has scrapped two potential deals in
the last year due to shareholder pressure, in April announced
plans to exit all exploration positions outside Egypt and
started the process of selling its UK assets as it tries to cut
costs. 
        Deltic said it will give up three of the five
exploration licences held with Capricorn while continuing to
operate the remaining two licenses on its own. 
        "While we would have preferred to continue in
partnership with Capricorn on these exploration licences,
Capricorn has recently changed strategic direction," Deltic CEO
Graham Swindells said. 
    Deltic in early July upgraded hydrocarbon estimate to twice
as much as initially thought for the Pensacola Gas field in
North Sea that it owns and operates with oil major Shell. 
    
        

 (Reporting by Prerna Bedi in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))