Final Results
Deltic Energy Plc / Index: AIM / Epic: DELT / Sector: Natural Resources
26 June 2026
Deltic Energy Plc ("Deltic" or "the Company")
Final Results
Deltic Energy Plc ("Deltic" or the "Company"), the AIM-quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern North Sea ("SNS") announce its audited results for the year ended 31 December 2025 ("FY 2025"), which are summarised below.
The Company's Annual Report for the year ended 31 December 2025 will be available to download shortly from the Company's website at www.delticenergy.com.
For further information please contact the following:
Deltic Energy Plc
Tel: +44 (0) 20 7887 2630
Andrew Nunn / Sarah McLeod
Allenby Capital Limited (Nominated Adviser)
Tel: +44 (0) 20 3328 5656
David Hart / Alex Brearley (Corporate Finance)
Canaccord Genuity Limited (Broker)
Adam James
Tel: +44 (0) 20 7523 8000
Vigo Consulting (IR Adviser)
Tel: +44 (0) 20 7390 0230
Patrick d'Ancona
Chairman's and Chief Executive's Statement
In 2014, Deltic Energy refined its strategic focus to capitalise on the UK's exploration-friendly fiscal and regulatory framework, which was specifically designed to encourage smaller companies and new entrants to the UKCS to invest in the identification and maturation of exploration opportunities across the basin. However, the past decade has proved to be the most challenging period in which to establish a new UK-focused exploration and appraisal business since oil and gas was first discovered in the North Sea in the 1960's.
During this period, the business has had to navigate a global pandemic, unprecedented volatility in oil and gas prices, the imposition of a punitive fiscal regime for oil and gas companies, and an increasingly challenging policy environment. This has included moratoria on unconventional gas projects and, more recently, a ban on the issuance of new licences, a presumption against oil and gas drilling, and the failure to approve new development consents.
Against this backdrop, Deltic has established itself as one of the most successful small exploration and appraisal-focused companies operating in the United Kingdom Continental Shelf ('UKCS'). This success is reflected in a strong track record of achievements, including awards in multiple licence rounds, farm-outs to Shell, Cairn Energy and Dana Petroleum, participation in the acquisition of two new 3D seismic surveys and, ultimately, a 100% exploration drilling success rate that delivered two major gas discoveries in the Southern North Sea.
Notwithstanding Deltic's clear technical and operational successes, the geopolitical and fiscal environment continues to undermine the investment case for UK-focused companies such as Deltic, which remain reliant on the equity capital markets to fund the progression of their asset base. As a result, a number of larger, cash-generative UKCS focused entities have begun to acquire assets that may offer longer-term strategic value should the UK Government adopt a more pragmatic approach to the domestic oil and gas sector in future.
It is in this context that the achievements of the Deltic team and the quality of our asset portfolio, including the Selene discovery, have once again been recognised by the industry, resulting in significant interest in the business following the lapse of the RockRose proposal on 31 March 2026. The Company subsequently received a number of approaches and, as announced on 7 May 2026, accepted the proposed acquisition of the entire issued and to be issued ordinary share capital of Deltic by NEO NEXT+, a leading UKCS-focused oil and gas producer.
On 24 June 2026, shareholders voted overwhelmingly in favour of the acquisition of Deltic by NEO NEXT+ and, subject to NSTA approval, the transaction is expected to complete in the coming months. We would like to thank our shareholders and staff for their continued support throughout this process, and we look forward to seeing NEO NEXT+ advance the Selene discovery and Deltic's other assets towards production.
Mark Lappin Andrew Nunn
Chairman Chief Executive Officer
25 June 2026 25 June 2026
Operating Review
P2437 - Selene Discovery
The joint venture progressed key subsurface technical activities during 2025. Routine and special core analyses were completed on samples from the 48/8b-3z appraisal well. Reprocessing of available 3D seismic datasets across Selene and the adjacent Endymion exploration prospect commenced during the period and is expected to complete in quarter-three 2026. The outputs will be used to update integrated subsurface interpretations and support revised static and dynamic reservoir models.
P2672 - Blackadder Appraisal Opportunity
During the period, Deltic acquired seismic field tapes and associated datasets required to enable 3D seismic reprocessing over the Blackadder discovery. The reprocessing project has been tendered and a preferred contractor selected. Processing is scheduled to commence in Q2 2026 and is expected to take approximately six to seven months to complete, supporting appraisal planning.
P2646 - Dewar Exploration Project
The Dewar project remained under care and maintenance throughout 2025, with no material operational activity undertaken.
Andrew Nunn
Chief Executive Officer
25 June 2026
Financial Review
Overview
The Company started the year with a cash balance of £1.4 million and ended the year on 31 December 2025 with a cash balance of £1.6 million.
On 30 June 2025, the boards of Rockrose Energy Limited ("Viaro Bidco") a wholly-owned subsidiary of Viaro Energy Limited ("Viaro Energy") and Deltic announced that they had reached agreement on the terms of a recommended cash offer for the entire issued and to be issued ordinary share capital of Deltic (the "Viaro Acquisition"), intended to be implemented by way of a court-sanctioned scheme of arrangement. The Acquisition lapsed on 31 March 2026. On 7 May 2026, the Company announced that it had recommended the proposed Acquisition of the entire issued ordinary share capital by NEO NEXT+.
To support the Company's liquidity position during the period to completion of the Viaro Acquisition, on 30 June 2025, Deltic entered into a two-year term loan with Viaro Bidco whereby Viaro Bidco agreed to make available to the Company funding of £2.7 million ("Term Loan"). The Term Loan was fully drawn down in 2025. The loan was unsecured and accrues interest at a rate of 10 per cent. per annum on the principal drawn. Post period end, the Term Loan was repaid and replaced by a bridging loan of up to £2.9 million (the "Bridge Financing"), further details of which are set out below.
In December 2025, the Company entered into a deferred repayment agreement (the "Deferred Repayment Agreement") with Shell U.K. Limited ("Shell") as operator of the P2437 licence ("Selene"), in relation to the payment of: (i) in aggregate, £1.5 million, being the sums that have accrued to Deltic's account in relation to the successful Selene exploration well from April 2025 to October 2025; and (ii) any further sums accruing to Deltic in relation to Selene after October 2025 (together the "Deferred Amounts"). Under the Deferred Repayment Agreement, Deltic's payment of the Deferred Amounts to Shell has been extended from February 2026 to August 2026, although Deltic may request extensions of this date for a total of up to nine months.
Loss for the year
The Company incurred a loss for the year to 31 December 2025 of £2.1 million (2024: £2.8 million before the write down of intangible assets). Administrative expenses of £1.9 million (2024: £3.0 million) were incurred during the year.
In the prior year, Deltic announced that it had completed the farm out of a 25% interest in Licence P2437, containing the Selene Prospect, Dana Petroleum (E&P) Limited ("Dana"). Dana paid the Company £1.0 million in cash on completion in relation to back costs incurred by Deltic. The Company recognised a gain of £0.1 million on the farm out of Licence P2437 to Dana which is included as other operating income in the prior year.
Finance income of £0.0 million (2024: £0.1 million) was earned on short-term high interest-bearing deposits. Finance costs of £0.2 million were incurred in the year (2024: less than £0.1 million) primarily relating to interest payable on the term loan and Deferred Payment Agreements.
Corporation tax is recognised in respect of finance income earned and finance costs incurred during the year. As a result, for 2025 the Company has recognised an income tax receivable of less than £0.1 million (2024: income tax payable of less than £0.1 million). The Company has incurred expenditure since incorporation on UK exploration and appraisal activities that gives rise to a potential tax asset of £65.7 million that can be utilised to offset future taxation.
There were no impairments recognised in 2025. In the prior year, the Company recognised an impairment of £18.0 million resulting from the decision to notify the partners of Licence P2252 of the Company's intention to withdraw from the Pensacola licence. Also in the prior year, the Company recognised a write down of £0.4 million resulting from the relinquishment of P2542 (Syros).
Balance Sheet
The Company had total capital and reserves as at 31 December 2025 of (£1.1) million (2024: £0.9 million).
The value of exploration assets increased by less than £0.1 million (2024: decrease of £15.6 million) to £2.0 million (2024: £1.9 million) primarily reflecting expenditure incurred on Selene and Blackadder, offset by £0.7 million (nil) derecognition of Selene exploration costs that are payable by Dana Petroleum E&P Limited ('Dana') under the farm-out of the Selene licence to Dana in 2024 .
Property, plant and equipment of £0.5 million (2024: £0.1 million) includes a right of use asset relating to the office lease. In April 2025, the Company entered into a new five-year office lease for its current registered office. The lease commenced in April 2025 for a five-year term, with a two-year break clause in April 2027. Annual rent of £0.1 million is payable quarterly in advance.
The Company's cash position at 31 December 2025 was £1.6 million (2024: £1.4 million) with the year-on-year increase primarily reflecting the drawdown of the £2.7 million Term Loan, partially offset by general and administrative costs and investment in licence related activities.
Total current liabilities, which include short-term creditors, accruals, provisions and lease liabilities were £3.2 million (2024: £1.6 million). Liabilities of £0.5 million (2024: £0.1 million) are due to trade creditors. Liabilities of less than £0.1 million (2024: £0.4 million) are due to the joint venture Operator for payments associated with operations. Other payables and accruals of £2.5 million (2024: £1.4 million) represent liabilities due under the Selene and Pensacola Deferred Payment Agreements. In the prior year, total non-current liabilities of £0.9 million represented liabilities due under the Pensacola deferred repayment agreement agreed.
Total non-current liabilities were £3.2 million (2024: £0.9 million) represented by £2.8 million due under the Term Loan (including interest) and lease liabilities of £0.4 million (2024: nil) related to the extension of the office lease.
Cash flow
As at 31 December 2025, the Company held cash and cash equivalents of £1.6 million (2024: £1.4 million). The Company generated a net cash inflow for the year of £0.2 million (2024: net outflow of £4.1 million).
A net cash outflow of £1.8 million (2024: £2.5 million) was incurred from operating activities, reflecting general and administrative costs.
A net cash outflow of £0.5 million (2024: £1.5 million) was utilised in investing activities, primarily in respect of exploration and evaluation expenditure. During the prior year, £2.6 million was invested in exploration and evaluation assets, partially offset by £1.0 million of proceeds received in relation to back costs incurred by the Company as part of the farm-out of a 25% interest in the Selene licence to Dana.
During the year, the Company drew down the full sum available under the Term Loan. The loan was unsecured and bore interest at a rate of 10% per annum on the principal drawn. The Company incurred interest costs of £0.1 million (2024: less than £0.1 million), primarily relating to the Term Loan and the Selene and Pensacola Deferred Payment Agreements.
Going concern
As part of the preparation of the Company's financial statements, the Directors have assessed the Company's ability to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements.
On 7 May 2026, the boards of NEO NEXT+ Energy Upstream UK Limited ("NEO NEXT+") and Deltic announced a recommended cash offer for the entire issued and to be issued ordinary share capital of Deltic (the "Acquisition") by way of a court-sanctioned scheme of arrangement.
On 24 June 2026, Deltic shareholders voted overwhelmingly to support the acquisition of Deltic by NEO NEXT+ which remains subject principally to NSTA approval of the transaction which is currently expected to complete before the end of quarter-three 2026.
In connection with the Acquisition, NEO NEXT+ agreed to provide the Bridge Financing for up to £2.9 million to repay the Term Loan which was repaid on 18 May 2026, including fees, costs and expenses due and payable to Viaro Bidco in relation to the Term Loan. The Bridge Financing is fully drawn, unsecured, and accrues interest at a rate of 10 per cent. per annum on the principal drawn down.
NEO NEXT+ has also undertaken to pay, or procure the payment of, certain costs reasonably and properly incurred by Deltic in connection with the Acquisition. The costs undertaking is capped at a maximum aggregate amount of £550,000. The Company does not expect the costs associated with the Acquisition to be materially more than £550,000.
The Company currently has sufficient cash resources to fund its near-term corporate costs. However, it does not have sufficient liquidity to settle its deferred payment obligations as they fall due without access to additional funding. In the absence of the Acquisition completing by the end of quarter-three 2026, the Directors anticipate that the Company would be required to raise additional capital in the going concern period to:
1) Settle any deferred repayment amount to Shell and Adura, as follows.
I. On 12 December 2025, Deltic announced that it had entered into a Deferred Payment Agreement with Shell U.K. Limited as operator of the P2437 Selene licence, in relation to the payment of: (i) in aggregate, £1.5 million being the sums that have accrued to Deltic's account in relation to the successful Selene exploration well from April 2025 to October 2025; and (ii) any further sums accruing to Deltic in relation to Selene after October 2025. Under the Deferred Payment Agreement with Shell, Deltic's payment of these amounts has most recently been extended to 27 August 2026. Deltic may request further extensions of this date for a total of up to nine months from 27 February 2026 to 27 November 2026, with the decision to grant any such extensions being at Shell U.K. Limited's sole discretion. The Selene Deferred Payment Agreement is repayable upon completion of the Acquisition.
II. In September 2024, Deltic agreed a deferred repayment agreement with its Pensacola joint venture partners whereby Deltic has a 24-month period from September 2024 to repay £0.9 million due to the joint venture. This agreement was subsequently assigned to Adura Energy Limited ('Adura') following the transfer of certain Shell and Equinor UKCS assets into the newly-formed Adura. Deltic may request an extension of up to a further 12 months to September 2027, with the decision to grant such an extension being at Adura's sole discretion.
2) Continue to fund the Company's share of the Selene work program ; and
3) Cover the Company's general corporate operating costs.
Against this backdrop, the Directors believe that the Acquisition represents certainty for Deltic's Shareholders in relation to the future of the Company. The Directors expect that the Acquisition will complete prior to the deferred payment obligations becoming payable. Upon completion, the Company will have access to additional financial resources under NEO NEXT+, enabling it to meet its liabilities as they fall due and continue operations throughout the going concern period.
In the event that the Acquisition does not complete as anticipated, the Company would need to secure additional funding. The options available to the Company would include increasing the existing NEO NEXT+ Bridge Financing, renegotiating the Deferred Payment Agreements and/or raising further capital.
The Directors believe that, in the absence of the Acquisition completing before the end of Q4 2026, the Company would be in an extremely challenging financial position and the Directors might have no option but to place the Company into administration. Should administrators be appointed, it is not known how much, if any, value would be returned to Shareholders.
These circumstances represent a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. However, the Directors have a reasonable expectation that the Acquisition will complete before the end of quarter-three 2026 and that the Company will thereafter have access to sufficient financial resources from NEO NEXT+ to trade solvently during the going concern period. Accordingly, the financial statements have been prepared on a going concern basis. The Independent Auditor's Report to the members of Deltic Energy Plc for the year ended 31 December 2025 refers to this material uncertainty surrounding going concern.
Sarah McLeod
Chief Financial Officer
25 June 2026
Investing Policy
In addition to the development of the North Sea gas licences the Company has acquired to date, the Company proposes to continue to evaluate other potential oil and gas projects in line with its investing policy, as it aims to build a portfolio of resource assets and create value for shareholders. As disclosed in the Company's AIM Admission Document in May 2012, the Company's substantially implemented Investment Policy is as follows:
The proposed investments to be made by the Company may be either quoted or unquoted; made by direct acquisition or through farm-ins; either in companies, partnerships or joint ventures; or direct interests in oil & gas and mining projects. It is not intended to invest or trade in physical commodities except where such physical commodities form part of a producing asset. The Company's equity interest in a proposed investment may range from a minority position to 100% ownership.
The Board initially intends to focus on pursuing projects in the oil & gas and mining sectors, where the Directors believe that a number of opportunities exist to acquire interests in attractive projects. Particular consideration will be given to identifying investments which are, in the opinion of the Directors, underperforming, undeveloped and/or undervalued, and where the Directors believe that their expertise and experience can be deployed to facilitate growth and unlock inherent value.
The Company will conduct initial due diligence appraisals of potential projects and, where it is believed further investigation is warranted, will appoint appropriately qualified persons to assist with this process. The Directors are currently assessing various opportunities which may prove suitable although, at this stage, only preliminary due diligence has been undertaken.
It is likely that the Company's financial resources will be invested in either a small number of projects or one large investment which may be deemed to be a reverse takeover under the AIM Rules. In every case, the Directors intend to mitigate risk by undertaking the appropriate due diligence and transaction analysis. Any transaction constituting a reverse takeover under the AIM Rules will also require Shareholder approval.
Investments in early stage and exploration assets are expected to be mainly in the form of equity, with debt being raised later to fund the development of such assets. Investments in later stage projects are more likely to include an element of debt-to-equity gearing. Where the Company builds a portfolio of related assets, it is possible that there may be cross holdings between such assets.
The Company intends to be an involved and active investor. Accordingly, where necessary, the Company may seek participation in the management or representation on the Board of an entity in which the Company invests with a view to improving the performance and use of its assets in such ways as should result in an upward re-rating of the value of those assets.
Given the timeframe the Directors believe is required to fully maximise the value of an exploration project or early-stage development asset, it is expected that the investment will be held for the medium to long term, although disposal of assets in the short term cannot be ruled out in exceptional circumstances.
The Company intends to deliver Shareholder returns principally through capital growth rather than capital distribution via dividends, although it may become appropriate to distribute funds to Shareholders once the investment portfolio matures and production revenues are established.
Given the nature of the Investing Policy, the Company does not intend to make regular periodic disclosures or calculations of its net asset value.
The Directors consider that as investments are made, and new investment opportunities arise, further funding of the Company will be required.
This strategic report contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst the Directors believe the expectation reflected herein to be reasonable in light of the information available up to the time of their approval of this report, the actual outcome may be materially different owing to factors either beyond the Company's control or otherwise within the Company's control but, for example, owing to a change of plan or strategy. Accordingly, no reliance may be placed on the forward-looking statements.
On behalf of the Board
Mark Lappin Andrew Nunn
Chairman Chief Executive Officer
25 June 2026 25 June 2026
Reporting Standard
Estimates of resources have been prepared in accordance with the PRMS as the standard for classification and reporting.
Qualified Person's Review
Andrew Nunn, a Chartered Geologist and Chief Operating Officer of Deltic, is a "Qualified Person" in accordance with the Guidance Note for Mining, Oil and Gas Companies, June 2009 as updated 230 June 2019, of the London Stock Exchange. Andrew has reviewed and approved the information contained within this announcement.
Glossary of Technical Terms
1C:
Represents the low case estimates of Contingent Resources as defined by PRMS
2C:
Represents the best case estimates of Contingent Resources as defined by PRMS
3C:
Represents the high case estimates of Contingent Resources as defined by PRMS
BCF or Bscf:
Billion Standard Cubic Feet
Boe:
Barrels of oil equivalent
Contingent Resources:
Those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from known accumulations, but which are not currently considered to be commercially recoverable, as defined by PMRS
ELT or Economic Limit Test:
Economic Limit Test. The economic limit is defined as the production rate at the time when the maximum cumulative net cash flow occurs for a project
Geological Chance of Success or GCoS:
For prospective resources, means the chance or probability of discovering hydrocarbons in sufficient quantity for them to be tested to the surface. This, then, is the chance or probability of the prospective resource maturing into a contingent resource. Prospective resources have both an associated chance of discovery (geological chance of success) and a chance of development (economic, regulatory, market and facility, corporate commitment and political risks). The chance of commerciality is the product of these two risk components. These estimates have been risked for chance of discovery but not for chance of development.
MMboe or million barrels of oil equivalent:
Million barrels of oil equivalent. Gas is converted at a conversion rate of 6,000 Scf per boe
MMstb:
Million stock tank barrels
MMscf:
Million standard cubic feet
P90 resource:
Reflects a volume estimate that, assuming the accumulation is developed, there is a 90% probability that the quantities actually recovered will equal or exceed the estimate. This is therefore a low estimate of resource
P50 resource:
Reflects a volume estimate that, assuming the accumulation is developed, there is a 50% probability that the quantities actually recovered will equal or exceed the estimate. This is therefore a median or best case estimate of resource
P10 resource:
Reflects a volume estimate that, assuming the accumulation is developed, there is a 10% probability that the quantities actually recovered will equal or exceed the estimate. This is therefore a high estimate of resource
PRMS:
The June 2018 Society of Petroleum Engineers ("SPE") Petroleum Resources Management System
Prospective Resources
Are estimated volumes associated with undiscovered accumulations. These represent quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from oil and gas deposits identified on the basis of indirect evidence but which have not yet been drilled.
Scf:
Standard cubic feet
Stb:
Stock tank barrel
STOIIP:
Stock tank oil initially in place
TVDSS:
True Vertical Depth Sub-Sea
Income Statement
for the year ended 31 December 2025
Continuing operations
Notes
2025
£
2024
£
Administrative expenses:
Write down on relinquished intangible assets
3
-
(18,465,070)
Other administrative expenses
(1,936,223)
(2,937,548)
Total administrative expenses
(1,936,223)
(21,402,618)
Other operating income
3
-
108,987
Operating loss
(1,936,223)
(21,293,631)
Finance income
5,067
112,011
Finance costs
(225,390)
(39,935)
Loss before tax
(2,156,546)
(21,221,555)
Income tax income / (expense)
17,704
(19,732)
Loss for the year
(2,138,842)
(21,241,287)
Loss per share from continuing operations
expressed in pence per share:
Basic and diluted
2
(2.30)p
(22.82)p
Statement of Comprehensive Income
for the year ended 31 December 2025
2025
£
2024
£
Loss for the year
(2,138,842)
(21,241,287)
Other comprehensive income
-
-
Total comprehensive expense for the year attributable to the equity holders of the Company
(2,138,842)
(21,241,287)
Balance Sheet
as at 31 December 2025
Notes
2025
£
2024
£
Assets
Non-current assets
Intangible assets
3
1,960,723
1,872,629
Property, plant and equipment
4
483,058
61,909
Investments in subsidiary
1
1
Other receivables
41,164
-
Total non-current assets
2,484,946
1,934,539
Current assets
Trade and other receivables
1,091,864
129,596
Current tax receivable
17,670
-
Cash and cash equivalents
1,649,225
1,444,904
Total current assets
2,758,759
1,574,500
Total assets
5,243,705
3,509,039
Capital and reserves attributable to the equity holders of the Company
Shareholders' equity
Share capital
9,309,660
9,309,660
Share premium
33,145,477
33,145,477
Share-based payment reserve
2,511,804
2,466,461
Accumulated retained deficit
(46,039,952)
(43,943,280)
Total equity
(1,073,011)
978,318
Liabilities
Current liabilities
Trade and other payables
3,084,299
1,591,370
Current tax payable
-
17,151
Lease liabilities
97,335
22,837
Total current liabilities
3,181,634
1,631,358
Non-current liabilities
Borrowings
2,783,192
-
Other payables
-
899,363
Lease liabilities
351,890
-
Total non-current liabilities
3,135,082
899,363
Total liabilities
6,316,716
2,530,721
Total equity and liabilities
5,243,705
3,509,039
Statement of Changes in Equity
for the year ended 31 December 2025
Share
capital
£
Share
premium
£
Share-based payment reserve
£Accumulated retained
deficit
£Total
equity
£
Balance at 1 January 2025
9,309,660
33,145,477
2,466,461
(43,943,280)
978,318
Comprehensive income for the year
Loss for the year
-
-
-
(2,138,842)
(2,138,842)
Total comprehensive loss for the year
-
-
-
(2,138,842)
(2,138,842)
Contributions by and distributions to owners
Share-based payment
-
-
87,513
-
87,513
Expired share options
-
-
(42,170)
42,170
-
Total contributions by and distributions to owners
-
-
45,343
42,170
87,513
Balance at 31 December 2025
9,309,660
33,145,477
2,511,804
(46,039,952)
(1,073,011)
Balance at 1 January 2024
9,309,660
33,145,477
1,999,834
(22,716,617)
21,738,354
Comprehensive income for the year
Loss for the year
-
-
-
(21,241,287)
(21,241,287)
Total comprehensive loss for the year
-
-
-
(21,241,287)
(21,241,287)
Contributions by and distributions to owners
Share-based payment
-
-
481,251
-
481,251
Expired share options
-
-
(14,624)
14,624
-
Total contributions by and distributions to owners
-
-
466,627
14,624
481,251
Balance at 31 December 2024
9,309,660
33,145,477
2,466,461
(43,943,280)
978,318
Statement of Cash Flows
for the year ended 31 December 2025
2025
£
2024
£
Cash flows from operating activities
Loss before tax
(2,156,546)
(21,221,555)
Finance income
(5,067)
(112,011)
Finance costs
225,390
39,935
Depreciation
119,343
114,096
(Gain) / loss on disposal of property, plant and equipment
(9,393)
1,130
Gain on farm-in
-
(108,987)
Write down on relinquished intangible assets
-
18,465,070
Foreign exchange movement in operating loss
-
(7,504)
Share-based payment
87,513
481,251
(1,738,760)
(2,348,575)
(Increase)/Decrease in other receivables
(259,808)
4,992
(Decrease)/Increase in trade and other payables
229,158
(90,203)
Tax paid
(17,117)
(90,290)
Net cash outflow from operating activities
(1,786,527)
(2,524,076)
Cash flows from investing activities
Purchase of intangible assets
(467,218)
(2,612,843)
Purchase of property, plant and equipment
(21,542)
(12,668)
Proceeds from licence farm-ins
-
1,040,581
Interest received
5,067
126,377
Net cash outflow from investing activities
(483,693)
(1,458,553)
Cash flows from financing activities
Loans received
2,700,000
-
Payment of principal portion of lease liabilities
(83,890)
(113,587)
Lease interest paid
(31,298)
(8,086)
Other interest paid
(110,271)
(31,053)
Net cash inflow/(outflow) from financing activities
2,474,541
(152,726)
Increase/(decrease) in cash and cash equivalents
204,321
(4,135,355)
Cash and cash equivalents at beginning of year
1,444,904
5,580,259
Cash and cash equivalents at end of year
1,649,225
1,444,904
Notes to the Financial Statements
for the year ended 31 December 2025
1. Accounting Policies
Basis of preparation
Deltic Energy Plc is a public limited company incorporated and domiciled in the United Kingdom whose shares are publicly traded. The registered office is located at 1st Floor, 150 Waterloo Road, London, SE1 8SB. The registered company number is 07958581.
The financial statements have been prepared in accordance with UK adopted International Accounting Standards ('IAS') and with those parts of the Companies Act 2006 applicable to companies reporting under International Accounting Standards ('IAS').
On 24 April 2023, the Company incorporated a subsidiary, Deltic Energy One Limited, a company incorporated in England and registered at 1st Floor 150 Waterloo Road, London, SE1 8SB. This subsidiary has been dormant from the date of incorporation. As it is not material for the purpose of giving a true and fair view, the Company has not consolidated its subsidiary, which has net assets of £1, taking advantage of the exemption available under the Companies Act 2006 section 405, and has therefore not prepared consolidated financial statements.
The preparation of financial statements in conformity with IAS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and factors that are believed to be reasonable under the circumstance, the result of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from this estimate. The areas involving a higher degree of judgement or complexity, or where assumptions and estimates are significant to the financial statements, are disclosed later in this note.
Operating loss is stated after charging and crediting all items excluding finance income and expenses.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period or in the period of revision and future periods if the revision affects both current and future periods.
Going concern
As part of the preparation of the Company's financial statements, the Directors have assessed the Company's ability to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements.
On 7 May 2026, the boards of NEO NEXT+ Energy Upstream UK Limited ("NEO NEXT+") and Deltic announced a recommended cash offer for the entire issued and to be issued ordinary share capital of Deltic (the "Acquisition") by way of a court-sanctioned scheme of arrangement.
On 24 June 2026, Deltic shareholders voted overwhelmingly to support the acquisition of Deltic by NEO NEXT+ which remains subject principally to NSTA approval of the transaction which is currently expected to complete before the end of quarter-three 2026.
In connection with the Acquisition, NEO NEXT+ agreed to provide the Bridge Financing for up to £2.9 million to repay the Term Loan which was repaid on 18 May 2026, including fees, costs and expenses due and payable to Viaro Bidco in relation to the Term Loan. The Bridge Financing is fully drawn, unsecured, and accrues interest at a rate of 10 per cent. per annum on the principal drawn down.
NEO NEXT+ has also undertaken to pay, or procure the payment of, certain costs reasonably and properly incurred by Deltic in connection with the Acquisition. The costs undertaking is capped at a maximum aggregate amount of £550,000. The Company does not expect the costs associated with the Acquisition to be materially more than £550,000.
The Company currently has sufficient cash resources to fund its near-term corporate costs. However, it does not have sufficient liquidity to settle its deferred payment obligations as they fall due without access to additional funding. In the absence of the Acquisition completing by the end of quarter-three 2026, the Directors anticipate that the Company would be required to raise additional capital in the going concern period to:
· Settle any deferred repayment amount to Shell and Adura, as follows.
· On 12 December 2025, Deltic announced that it had entered into a Deferred Payment Agreement with Shell U.K. Limited as operator of the P2437 Selene licence, in relation to the payment of: (i) in aggregate, £1.5 million being the sums that have accrued to Deltic's account in relation to the successful Selene exploration well from April 2025 to October 2025; and (ii) any further sums accruing to Deltic in relation to Selene after October 2025. Under the Deferred Payment Agreement with Shell, Deltic's payment of these amounts has most recently been extended to 27 August 2026. Deltic may request further extensions of this date for a total of up to nine months from 27 February 2026 to 27 November 2026, with the decision to grant any such extensions being at Shell U.K. Limited's sole discretion. The Selene Deferred Payment Agreement is repayable upon completion of the Acquisition.
· In September 2024, Deltic agreed a deferred repayment agreement with its Pensacola joint venture partners whereby Deltic has a 24-month period from September 2024 to repay £0.9 million due to the joint venture. This agreement was subsequently assigned to Adura Energy Limited ('Adura') following the transfer of certain Shell and Equinor UKCS assets into the newly-formed Adura. Deltic may request an extension of up to a further 12 months to September 2027, with the decision to grant such an extension being at Adura's sole discretion.
· Continue to fund the Company's share of the Selene work program ; and
· Cover the Company's general corporate operating costs.
Against this backdrop, the Directors believe that the Acquisition represents certainty for Deltic's Shareholders in relation to the future of the Company. The Directors expect that the Acquisition will complete prior to the deferred payment obligations becoming payable. Upon completion, the Company will have access to additional financial resources under NEO NEXT+, enabling it to meet its liabilities as they fall due and continue operations throughout the going concern period.
In the event that the Acquisition does not complete as anticipated, the Company would need to secure additional funding. The options available to the Company would include increasing the existing NEO NEXT+ Bridge Financing, renegotiating the Deferred Payment Agreements and/or raising further capital.
The Directors believe that, in the absence of the Acquisition completing before the end of Q4 2026, the Company would be in an extremely challenging financial position and the Directors might have no option but to place the Company into administration. Should administrators be appointed, it is not known how much, if any, value would be returned to Shareholders.
These circumstances represent a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. However, the Directors have a reasonable expectation that the Acquisition will complete before the end of quarter-three 2026 and that the Company will thereafter have access to sufficient financial resources from NEO NEXT+ to trade solvently during the going concern period. Accordingly, the financial statements have been prepared on a going concern basis. The Independent Auditor's Report to the members of Deltic Energy Plc for the year ended 31 December 2025 refers to this material uncertainty surrounding going concern.
2. Loss per Share
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.
Due to the losses incurred during the year, a diluted loss per share has not been calculated as this would serve to reduce the basic loss per share. There were 9,406,560 (2024: 9,506,560) share options outstanding at the end of the year that could potentially dilute basic earnings per share in the future.
Basic and diluted loss per share
2025
2024
Loss per share from continuing operations
(2.30)p
(22.82)p
The loss and weighted average number of ordinary shares used in the calculation of loss per share are as follows:
2025
2024
£
£
Loss used in the calculation of total basic loss per share
(2,138,842)
(21,241,287)
Number of shares
2025
2024
Number
Number
Weighted average number of ordinary shares for the purposes of basic loss per share
93,096,000
93,096,600
3. Intangible Assets
Exploration & evaluation assets
£
Software
licences£
Total
£
Cost
At 1 January 2024
17,626,340
39,257
17,665,597
Additions
3,797,407
-
3,797,407
Farm-out of licence
(922,933)
-
(922,933)
Write down on relinquished intangible assets
(18,465,070)
-
(18,465,070)
At 31 December 2024
2,035,744
39,257
2,075,001
Additions
831,718
-
831,718
Disposals
(743,624)
(743,624)
At 31 December 2025
2,123,838
39,257
2,163,095
Amortisation and impairment
At 1 January 2024
163,115
39,257
202,372
Impairment charge
-
-
-
At 31 December 2024
163,115
39,257
202,372
Impairment charge
-
-
-
At 31 December 2025
163,115
39,257
202,372
Net Book Value
At 31 December 2025
1,960,723
-
1,960,723
At 31 December 2024
1,872,629
-
1,872,629
At 31 December 2023
17,463,225
-
17,463,225
The net book value of exploration and evaluation assets at 31 December 2025 and 2024 relates solely to the Company's North Sea Licences. The net book value of exploration and evaluation assets include £99,446 (2024: nil) capitalised interest on the Selene Deferred Payment Agreement.
Additions of £831,718 (2024: £3,797,407) differ to the cash flows in the Statement of Cash Flows owing to an increase in trade and other payables of £265,054 (2024: £1,184,564 increase) and capitalised interest of £99,446 (2024: nil).
In the prior year, aggregate cash proceeds arising from the farm-out of the Selene licence to Dana amounted to £1,040,581, including a foreign exchange gain of £8,661. An amount of £922,933, representing the previously capitalised costs relating to the licence, was derecognised from exploration and evaluation assets. The excess of proceeds over the carrying amount of £108,987 was recognised as a gain on disposal of the partial interest and presented within other operating income in the Income Statement for that year. Under the Company's farm-in agreement with Dana, if, at the end of the 18-month period commencing on completion of the Selene commitment well, Dana remains a participant in the licence, the well carry cost cap increases by USD 1 million (£0.7 million). Dana paid USD 1 million (£0.7 million) to the Company in May 2026. In accordance with IFRS 9, the associated financial asset was recognised in 2025 at fair value, with the corresponding disposal of the relevant portion of the exploration and evaluation asset recognised at that time.
In the prior year:
· A charge of £17,998,254 was recognised (2025: nil) resulting from the write down on relinquished intangible assets following the decision to withdraw from P2252 (Pensacola)
· A charge of £69,092 was recognised (2025: nil) resulting from the write down on relinquished intangible assets following the decision to relinquish P2558 (Pensacola North).
· A charge of £395,112 was recognised (2025: nil) resulting from the write down on relinquished intangible assets following the decision to relinquish P2542 (Syros). A charge of £2,612 was recognised (2025: £21,127) resulting from the write down on relinquished assets following the decision in the prior year to relinquish from P2567 (Cadence).
4. Property, Plant and Equipment
Leasehold improvements
Office lease
Fixtures
and fittings
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2024
91,700
404,650
45,256
43,431
585,037
Additions
-
-
-
5,508
5,508
Disposals
-
-
(1,786)
(2,021)
(3,807)
At 31 December 2024
91,700
404,650
43,470
46,918
586,738
Additions
-
542,590
-
-
542,590
Disposals
-
(404,650)
(4,928)
(2,217)
(411,795)
At 31 December 2025
91,700
542,590
38,542
44,701
717,533
Depreciation
At 1 January 2024
64,142
296,744
23,162
29,362
413,410
Charge for year
19,367
80,931
6,825
6,973
114,096
Disposals
-
-
(1,096)
(1,581)
(2,677)
At 31 December 2024
83,509
377,675
28,891
34,754
524,829
Charge for year
8,191
100,212
6,520
4,420
119,343
Disposals
-
(404,650)
(3,591)
(1,456)
(409,697)
At 31 December 2025
91,700
73,237
31,820
37,718
234,475
Net Book Value
At 31 December 2025
-
469,353
6,722
6,983
483,058
At 31 December 2024
8,191
26,975
14,579
12,164
61,909
At 1 January 2024
27,558
107,906
22,094
14,069
171,627
The office lease category reflects a right of use asset relating to the office premises occupied by the Company. The Company extended the current office lease for a further five years. As a result of which the fully depreciated right of use lease asset for the previous office lease has been derecognised.
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