REG - Deltic Energy PLC - Formal Award of UKCS Licence

Deltic EnergyAnnouncement

08/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240708:nRSH4047Va&default-theme=true

RNS Number : 4047V  Deltic Energy PLC  08 July 2024

Deltic Energy Plc / Index: AIM / Epic: DELT / Sector: Natural Resources

 

8 July 2024

 

 

Deltic Energy Plc ("Deltic" or "the Company")

Formal Award of UKCS Licence - 33(rd) Offshore Licensing Round

 

Deltic Energy Plc (https://delticenergy.com/) , the AIM quoted natural
resources investing company with a high impact exploration and appraisal
portfolio focused on the Southern and Central North Sea, is pleased to
announce that it has accepted one of the two licences that were provisionally
awarded by the North Sea Transition Authority ("NSTA") in Tranche 3 of the
UK's 33(rd) Offshore Licensing Round ("33(rd) Round").

 

Licence P2672 (Deltic 100% WI) is located immediately to the west of the West
Sole gas field and covers blocks 47/5e, 47/10c and 48/6c and contains the
Pharos and Teviot discoveries.  Deltic's preliminary evaluation, completed as
part of the application process, has resulted in an updated understanding of
the structural setting, which suggests that the Pharos discovery and the
Blackadder prospect are in fact a single Leman Sandstone structure.

 

Deltic's preliminary volumetrics for the two discoveries on the licence are
summarised below:

 

 Project ID         Discovery Well  Prospective Resources (BCF)         GCoS

                                                                        %
                    P90                         P50         P10
 Blackadder/Pharos  47/05d-6        66          165         293         65%*
 Teviot             47/10-8         9           17          27          65%*

*Both wells encountered gas-bearing Leman Sandstone, however neither well was
flow tested so there is residual risk related to reservoir effectiveness.

 

The 47/05d-6 well, drilled by a consortium led by Dana Petroleum in 2013,
targeted what was originally interpreted to be a standalone prospect formerly
called Pharos, however updated structural mapping indicates the well
intersected the materially larger Blackadder structure in a downdip location.

 

The initial 3 year Phase A work programme commitments for the licence are
focused on the reprocessing of legacy 3D seismic data to improve reservoir
imaging and refine the structural model in order to further de-risk the
Blackadder structure at nominal cost.

 

Graham Swindells, CEO of Deltic, commented:

 

"The Blackadder project has many analogous attributes to the Selene prospect,
where the reworking of legacy datasets has unearthed a potential missed pay
opportunity of material scale. Blackadder's location, in close proximity to
existing infrastructure that requires new third party gas to defer
decommissioning, should enhance its value in a mature basin where new licences
are likely to become increasingly scarce. Over the coming year we will
progress our work on the legacy data in preparation for farm-out, in
anticipation of drilling an appraisal well on Blackadder in due course."

 

**ENDS**

 

For further information please contact the following:

 

 Deltic Energy Plc                                                              Tel: +44 (0) 20 7887 2630

 Graham Swindells / Andrew Nunn / Sarah McLeod

 Allenby Capital Limited (Nominated Adviser)                                    Tel: +44 (0) 20 3328 5656
 David Hart / Alex Brearley (Corporate Finance)

 Stifel Nicolaus Europe Limited (Joint Broker)                                  Tel: +44 (0) 20 7710 7600

 Callum Stewart / Simon Mensley / Ashton Clanfield

 Canaccord Genuity Limited (Joint Broker)                                       Tel: +44 (0) 20 7523 8000

 Adam James / Ana Ercegovic

 Vigo Consulting (IR Adviser)                                                   Tel: +44 (0) 20 7390 0230

 Patrick d'Ancona / Finlay Thomson / Kendall Hill

 

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 21 July 2019, of the London Stock
Exchange. Andrew has reviewed and approved the information contained within
this announcement.

 

Glossary of Technical Terms

 

 BCF:                                  Billion Cubic Feet

 Geological Chance of Success (GCoS):  or 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.

 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

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDBDLLBZDLZBBB