REG - Deltic Energy PLC - Interim Results
24/09/2025 07:00
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RNS Number : 5272A Deltic Energy PLC 24 September 2025
Deltic Energy Plc / Index: AIM / Epic: DELT / Sector: Natural Resources
24 September 2025
Deltic Energy Plc ("Deltic" or "the Company")
Interim 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") is pleased to announce its
unaudited interim results for the six months ended 30 June 2025, which are
summarised below.
For further information please contact the following:
Deltic Energy Plc Tel: +44 (0) 20 7887 2630
Andrew Nunn / Sarah McLeod
Allenby Capital Limited (Nominated Tel: +44 (0) 20 3328 5656
Adviser)
David Hart / Alex Brearley (Corporate Finance)
Canaccord Genuity Limited (Broker) Tel: +44 (0) 20 7523 8000
Adam James / Charlie Hammond
Vigo Consulting (IR Tel: +44 (0) 20 7390 0230
Adviser)
Patrick d'Ancona / Finlay Thomson
Chairman's Statement
This is clearly a time for reflection on our company and our industry.
Cluff Natural Resources, then Deltic, formed a very simple business plan that
was not able to be followed previously:
Build a small team of capable and experienced people; sieve the publicly
available data; seismic data, well data and relinquishment reports; identify
overlooked attractive prospects and acquire licences with minimal commitments;
mature prospects and present them to operators who will find them attractive
and 'buy' an interest through covering costs.
Then, do it again.
This led to drilling two exploration prospects and having two discoveries; two
out of two, an impressive record in the North Sea.
We saw government figures showing a decline in demand for oil and gas but
production decline outpacing this and an increased reliance on imports. We
aimed to be part of the transition maximising domestic production and
minimising imports.
Unfortunately, while assessing subsurface risk in our prospect work, we
underestimated the impact of the risk that undermined our business plan.
Hostile policy across several governments reduced investor confidence and cut
off the supply of licences and capital.
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 share capital of Deltic (the "Acquisition").
Recommending the sale of the Company to an organisation with a different
business model and greater financial capacity was the obvious solution and
that's where we stand today.
We are very proud of our achievements to date and will watch closely as the
Selene and Pensacola discoveries are matured and hopefully taken into
production, producing much needed natural gas for the benefit of the UK.
Mark Lappin
Chairman
24 September 2025
CEO Statement
The uncertainty surrounding the UK Government's policy position continues to
damage the UK's domestic E&P industry and undermine investor confidence in
the sector as we continue to wait on the outcome of ongoing consultations in
relation to the future of licensing on the UK Continental Shelf and the fiscal
regime.
During the first half of 2025, it became clear that Deltic's exploration
focussed strategy, which relied on access to further equity capital to drive
the progression of assets up the value chain through farm-out, discovery and
ultimately development, was no longer sustainable in the current business
environment.
It was against this backdrop that the Deltic Board welcomed the proposed
Acquisition of Deltic by Viaro Bidco, a wholly owned subsidiary of Viaro
Energy. The Acquisition provides a way forward for the Selene asset, giving
our licence partners and regulators some certainty around the future of that
asset and the rest of the Deltic portfolio.
At the Court Meeting held on 28 August 2025, Deltic shareholders voted
overwhelmingly to approve the acquisition of Deltic by Viaro Bidco.
Transaction completion, which is still subject to certain regulatory consents,
is currently expected in early Q4 of 2025, after which the shares of Deltic
Energy Plc will be cancelled from trading on AIM.
Deltic has consistently punched above its weight and has achieved more than
any other small explorer over the same period as evidenced by the farm-outs to
Shell, and others, and a 100% drilling success rate which delivered two major
gas discoveries in the Southern North Sea. I'm immensely proud of what we've
managed to achieve at Deltic, and Cluff Natural Resources before that, and
would like to thank all those that have supported the business over the years
as well of course as the Deltic team which has worked so hard to progress our
strategy.
Andrew Nunn
Chief Executive Officer
24 September 2025
Operating Review
During the period the team has continued to support Shell UK Ltd, in its role
as Operator of Licence P2437, containing the Selene discovery. Work during
the period has had a particular focus on the analysis of core samples
collected during drilling operations and preparation for re-processing of the
legacy 3D seismic data over the area. The Deltic team remains fully
integrated into these processes and will be critical in ensuring a smooth
handover of the Selene project to Viaro Energy, upon completion of the
Acquisition.
Similarly on the Blackadder area, Licence P2672, the team has been laying the
groundwork for the re-processing of a complex collection of legacy 3D surveys
to further de-risk the Blackadder opportunity.
The Dewar licence, P2646, has remained in care and maintenance mode, and will
likely remain so, until clarification on issuing new development consents is
provided by the UK government.
Andrew Nunn
Chief Executive Officer
24 September 2025
Qualified Person
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.
Financial Review
Overview
The Company started the year with a cash balance of £1.4 million and ended
the period to 30 June 2025 with a cash balance of £0.3 million. On 30 June
2025, the boards of Viaro Bidco and Deltic announced that they had reached
agreement on the terms of the Acquisition, intended to be implemented by way
of a court-sanctioned scheme of arrangement. At the Court Meeting held on 28
August 2025, Deltic shareholders voted overwhelmingly to approve the
acquisition of Deltic by Viaro Bidco. Transaction completion, which is still
subject to certain regulatory consents, is currently expected in early Q4 of
2025, after which Deltic Energy Plc's shares will be cancelled from trading on
AIM.
To support the Company's liquidity position during the period to completion of
the Acquisition, on 30 June 2025, Deltic entered into a two-year term loan
with Viaro Bidco whereby Viaro Bidco has agreed to make available to the
Company funding of £2.7 million ("Term Loan") which will be available to be
used to settle £1.3 million of current liabilities that are due to Shell and
for general corporate and working capital purposes. The Term Loan is unsecured
and interest accrues at a rate of 10 per cent. per annum on the principal
drawn down. The Term Loan had not been drawn down in the period to 30 June
2025.
Income Statement
The Company incurred a loss in the six months to 30 June 2025 of £1.0 million
compared with a loss of £1.3 million, before the impairment of Pensacola, for
the comparable period in 2024. Administrative expenses of £0.9 million (1H
2024: £1.5 million) were incurred during the period.
In the prior period to 30 June 2024, the Company recognised an impairment in
the period 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.
In the prior period to 30 June 2024, Deltic farmed out a 25% interest in
Licence P2437, containing the Selene Prospect, to Dana. Dana paid the Company
£1.1 million in cash on completion in relation to back costs incurred by
Deltic. The Company recognised a gain in the period to 30 June 2024 of £0.1
million on the farm out of Licence P2437 to Dana which is included as other
operating income.
Finance costs of less than £0.1 million (1H 2024: £0.0 million) were paid on
the deferred repayment agreement agreed with the Pensacola JV. Deltic has 24
months from September 2024 to repay £0.9 million due to the JV. The deferred
payment terms include a non-compounding interest of Bank of England Base
Rate plus 8%, repayable quarterly in arrears commencing in December 2024.
The Company has recognised income tax income in the period of less than £0.1
million (1H 2024: payable less than £0.1 million).
Balance Sheet
The value of exploration assets increased by £0.3 million during the period
to 30 June 2025 to £2.2 million (31 December 2024: £1.9 million), mainly
reflecting further spend on the Selene discovery.
The Property, Plant and Equipment increase reflects the new office lease
valuation of £0.5 million that was entered into on 4 April 2025. The Company
entered into a new five-year office lease for its current registered office.
The lease commenced on 28 April 2025, with a two year break clause on 28 April
2027. Annual rent of £0.1 million is payable quarterly in advance.
The Company's cash position at 30 June 2025 was £0.3 million (31 December
2024: £1.4 million), with the £1.1 million decrease in the period arising
from general and administrative costs and investment in post Selene discovery
operational costs.
Total current liabilities, which include short-term creditors, accruals,
provisions and lease liabilities increased by £0.4 million to £2.0 million
(31 December 2024: £1.6 million). Other payables and accruals of £1.9
million (31 December 2024: £1.6 million) mainly represent the overspend on
the Selene well in 2024 which resulted in unexpected costs being allocated to
the Company. This cost overrun on the Selene well resulted in additional
costs, recognised in 2024, as £1.3 million net to Deltic. The Company plans
to pay the Selene liabilities from the Term Loan in Q4 2025. A further £0.5
million current liabilities are recognised for general and administrative
costs including £0.2 million that will be recoverable from Viaro Bidco as
part of a Cost Coverage Agreement whereby Viaro Bidco will pay certain costs
incurred by the Company in connection with the Acquisition.
Cash Flow
As at 30 June 2025, the Company held cash and cash equivalents totalling £0.3
million (31 December 2024: £1.4 million). The Company had a net cash outflow
for the period of £1.2 million (1H 2024: £1.8 million).
A net cash outflow from operating activities of £1.1 million (1H 2024: £1.3
million) was incurred for general and administrative costs.
Net cash of £0.1 million was used in investing activities (1H 2024: £1.6
million). Bank interest of £0.1 million (1H 2024: £0.1 million) was earned
on short term high interest-bearing deposits.
Net cash of £0.1 million (1H 2024: £0.1 million) was used for financing
activities mainly on the Pensacola JV deferred repayment agreement.
Going Concern
The Directors have completed the going concern assessment, including
considering cash flow forecasts up to Q3-2026, sensitivities, and stress tests
to assess whether the Company is a going concern.
On 30 June 2025, the boards of Viaro Bidco and Deltic announced that they had
reached agreement on the terms the Acquisition, intended to be implemented by
way of a court-sanctioned scheme of arrangement. At the Court Meeting held on
28 August 2025, Deltic shareholders voted overwhelmingly to approve the
acquisition of Deltic by Viaro Bidco. Transaction completion, which is still
subject to certain regulatory consents, is currently expected in early Q4 of
2025, after which Deltic Energy Plc's shares will be cancelled from trading on
AIM.
To support the Company's liquidity position during the period to completion of
the Acquisition, on 30 June 2025, Deltic entered into a two-year term loan
with Viaro Bidco whereby Viaro Bidco has agreed to make available to the
Company funding of £2.7 million ("Term Loan") which will be available to be
used to settle £1.3 million of current liabilities that are due to Shell and
for general corporate and working capital purposes. The Term Loan is unsecured
and interest will accrue at a rate of 10 per cent. per annum on the principal
drawn down.
Viaro Bidco 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 £650,000. The Company does not expect the costs associated with the
Acquisition to be more than £650,000.
In the absence of the Acquisition completing, the Directors anticipate that
the Company would be required to raise additional capital in the going concern
period to:
1) Settle any amount drawn down under the £2.7 million Term Loan, which
may include the repayment of the £1.3 million Shell current liabilities;
2) Continue to fund the Company's share of the Selene work program until
value can be realised from the Selene asset; 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 also believe that, in the absence of alternative funding to
the Term Loan and the Acquisition progressing, the Company would be in an
extremely challenging financial position and the Directors may 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, having
regard to the availability of the Term Loan entered into on 30 June 2025 and
the cost coverage arrangements referred to above, the Directors have a
reasonable expectation that the Company will have adequate resources to
continue in existence to at least the period prior to completion of the
Acquisition. Accordingly, the interim financial statements have been
prepared on a going concern basis.
Sarah McLeod
Chief Financial Officer
24 September 2025
UNAUDITED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE LOSS
For the period ended 30 June 2025
Note Period ended 30 June 2025 Period ended 30 June 2024 Year ended 31 December 2024
Unaudited Unaudited Audited
£ £ £
Other administrative expenses (973,777) (1,487,503) (2,937,548)
Exceptional administrative expenses: Impairment on intangible assets (1,285) (17,974,542) (18,465,070)
4
Total administrative expenses (975,062) (19,462,045) (21,402,618)
Other operating income 4 - 108,987 108,987
Operating loss (975,062) (19,353,058) (21,293,631)
Finance income 5,066 84,643 112,011
Finance costs (64,255) (6,223) (39,935)
Loss before tax (1,034,251) (19,274,638) (21,221,555)
Income tax expense 13,064 (21,161) (19,732)
Loss and comprehensive loss for the period attributable to equity holders of (1,021,187) (19,295,799) (21,241,287)
the Company
Loss per share from continuing operations expressed in pence per share: 3 (1.10)p (20.73)p (22.82)p
Basic and diluted
UNAUDITED BALANCE SHEET
As at 30 June 2025
Note 30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
£ £ £
NON-CURRENT ASSETS
Intangible Assets 4 2,146,463 958,721 1,872,629
Property, Plant and Equipment 544,930 119,547 61,909
Investment in subsidiary 1 1 1
Other receivables - 37,422 -
2,691,394 1,115,691 1,934,539
CURRENT ASSETS
Trade and other receivables 382,100 189,400 129,596
Cash and cash equivalents 280,147 3,731,200 1,444,904
662,247 3,920,600 1,574,500
TOTAL ASSETS 3,353,641 5,036,291 3,509,039
CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital 7 9,309,660 9,309,660 9,309,660
Share premium 33,145,477 33,145,477 33,145,477
Share-based payment reserve 2,528,691 2,288,196 2,466,461
Accumulated retained deficit (44,964,467) (42,012,416) (43,943,280)
TOTAL EQUITY 19,361 2,730,917 978,318
CURRENT LIABILITIES
Trade and other payables 5 1,936,309 2,112,891 1,591,370
Current tax payable 4,087 109,935 17,151
Lease liability 6 92,805 82,548 22,837
2,033,201 2,305,374 1,631,358
NON-CURRENT LIABILITIES
Other payables 899,363 - 899,363
Lease liability 6 401,716 - -
1,301,079 - 899,363
TOTAL LIABILITIES 3,334,280 2,305,374 2,530,721
TOTAL EQUITY AND LIABILITIES 3,353,641 5,036,291 3,509,039
UNAUDITED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 June 2025
Share-based payment reserve Accumulated Retained deficit
Share capital Share premium 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 period - - - (1,021,187) (1,021,187)
Total comprehensive loss for the period - - - (1,021,187) (1,021,187)
Contributions by and distributions to owners
Share-based payment - - 62,230 - 62,230
Total contributions by and distributions to owners - - 62,230 - 62,230
Balance at 30 June 2025 (Unaudited) 9,309,660 33,145,477 2,528,691 (44,964,467) 19,361
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 period - - - (19,295,799) (19,295,799)
Total comprehensive loss for the period - - - (19,295,799) (19,295,799)
Contributions by and distributions to owners
Share-based payment - - 288,362 - 288,362
Total contributions by and distributions to owners - - 288,362 - 288,362
Balance at 30 June 2024 (Unaudited) 9,309,660 33,145,477 2,288,196 (42,012,416) 2,730,917
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
Expired share options - - (14,624) 14,624 -
Share-based payment - - 481,251 - 481,251
Total contributions by and distributions to owners - - 466,627 14,624 481,251
Balance at 31 December 2024 (Audited) 9,309,660 33,145,477 2,466,461 (43,943,280) 978,318
UNAUDITED STATEMENT OF CASH FLOWS
For the period ended 30 June 2025
Period ended 30 June 2025 Period ended 30 June 2024 Year ended 31 December 2024
Unaudited Unaudited Audited
£ £ £
Cash flows from operating activities
Loss before tax (1,034,251) (19,274,638) (21,221,555)
Adjustments for:
Finance income (5,066) (84,643) (112,011)
Finance costs 64,255 6,223 39,935
Depreciation 59,570 57,250 114,095
Loss on disposal of property, plant and equipment (11,491) - 1,130
Gain on farm in - (108,987) (108,987)
Impairment of intangible assets 1,285 17,974,542 18,465,070
Foreign exchange movement in operating loss - (9,589) (7,504)
Share-based payment 62,230 288,362 481,251
(863,468) (1,151,480) (2,348,576)
(Increase)/Decrease in trade and other receivables (249,166) (84,326) 4,992
Decrease in trade and other payables 187,609 (92,631) (90,202)
Tax paid - - (90,290)
Net cash used in operating activities (925,025) (1,328,437) (2,524,076)
Cash flows from investing activities
Purchase of intangible assets (117,789) (1,632,008) (2,612,843)
Purchase of property, plant and equipment (21,452) (12,330) (12,668)
Proceeds from licence farm in - 1,091,345 1,040,581
Interest received 1,727 92,167 126,377
Net cash used in investing activities (137,514) (460,826) (1,458,553)
Cash flows from financing activities
Payment of principal portion of lease liabilities (37,963) (50,873) (113,587)
Interest on lease liabilities (8,618) (8,430) (8,086)
Other interest paid (55,637) - (31,053)
Net cash outflow from financing activities (102,218) (59,303) (152,726)
Decrease in cash and cash equivalents (1,164,757) (1,848,566) (4,135,355)
Cash and cash equivalents at beginning of period / year 1,444,904 5,580,259 5,580,259
Effect of exchange rate changes on balance of cash held in foreign currencies - (493) -
Cash and cash equivalents at end of period / year 280,147 3,731,200 1,444,904
NOTES TO THE FINANCIAL INFORMATION
For the period ended 30 June 2025
1. GENERAL
The interim financial information for the period to 30 June 2025 is unaudited
and does not constitute statutory accounts within the meaning of Section 434
of the Companies Act 2006.
2. ACCOUNTING POLICIES
The interim financial information in this report has been prepared on the
basis of the accounting policies set out in the audited financial statements
for the year ended 31 December 2024 together with new and amended standards
applicable to periods commencing 1 January 2025 (which have no material impact
on the financial statements), which complied with UK adopted International
Accounting Standards in conformity with the requirements of the Companies Act
2006, and with those parts of the Companies Act 2006 applicable to companies
reporting under UK adopted International Accounting Standards (IAS).
UK adopted IAS is subject to amendment and interpretation by the International
Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and
there is an on-going process of review and endorsement by the UK Endorsement
Board since January 2021 (previously the European Commission).
The financial information has been prepared on the basis of IFRS that the
Directors expect to be applicable as at 31 December 2025, with the exception
of IAS 34 Interim Financial Reporting.
The condensed financial information for the period ended 31 December 2024 set
out in this interim report does not comprise the Group's statutory accounts as
defined in section 434 of the Companies Act 2006.
The statutory accounts for the year ended 31 December 2024, which were
prepared under UK adopted International Accounting Standards in conformity
with the requirements of the Companies Act 2006, and with those parts of the
Companies Act 2006 applicable to companies reporting under UK adopted IAS,
have been delivered to the Registrar of Companies. The auditors reported on
these accounts; their report was unqualified and did not contain a statement
under section 498(2) or 498(3) of the Companies Act 2006.
Going Concern
The Directors have completed the going concern assessment, including
considering cash flow forecasts up to Q3-2026, sensitivities, and stress tests
to assess whether the Company is a going concern.
On 30 June 2025, the boards of Viaro Bidco and Deltic announced that they had
reached agreement on the terms the Acquisition, intended to be implemented by
way of a court-sanctioned scheme of arrangement. At the Court Meeting held on
28 August 2025, Deltic shareholders voted overwhelmingly to approve the
acquisition of Deltic by Viaro Bidco. Transaction completion, which is still
subject to certain regulatory consents, is currently expected in early Q4 of
2025, after which Deltic Energy Plc's shares will be cancelled from trading on
AIM.
To support the Company's liquidity position during the period to completion of
the Acquisition, on 30 June 2025, Deltic entered into a two-year term loan
with Viaro Bidco whereby Viaro Bidco has agreed to make available to the
Company funding of £2.7 million ("Term Loan") which will be available to be
used to settle £1.3 million of current liabilities that are due to Shell and
for general corporate and working capital purposes. The Term Loan is unsecured
and interest will accrue at a rate of 10 per cent. per annum on the principal
drawn down.
Viaro Bidco 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 £650,000. The Company does not expect the costs associated with the
Acquisition to be more than £650,000.
In the absence of the Acquisition completing, the Directors anticipate that
the Company would be required to raise additional capital in the going concern
period to:
1) Settle any amount drawn down under the £2.7 million Term Loan, which
may include the repayment of the £1.3 million Shell current liabilities;
2) Continue to fund the Company's share of the Selene work program until
value can be realised from the Selene asset; 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 also believe that, in the absence of alternative funding to
the Term Loan and the Acquisition progressing, the Company would be in an
extremely challenging financial position and the Directors may 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, having
regard to the availability of the Term Loan entered into on 30 June 2025 and
the cost coverage arrangements referred to above, the Directors have a
reasonable expectation that the Company will have adequate resources to
continue in existence to at least the period prior to completion of the
Acquisition. Accordingly, the interim financial statements have been
prepared on a going concern basis.
3. 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 period.
Given the Company's reported loss for the period, share options and warrants
are not taken into account when determining the weighted average number of
ordinary shares in issue during the year and therefore the basic and diluted
loss per share are the same.
Basic and diluted loss per share
Period ended 30 June 2025 Period ended 30 June 2024 Year ended 31 December 2024
Loss for the period (£) (1,021,187) (19,295,799) (21,241,287)
Weighted average number of ordinary shares (number) 93,096,600 93,096,600 93,096,600
Loss per share from continuing operations (1.10)p (20.73)p (22.82)p
4. 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 assets (18,465,070) - (18,465,070)
At 31 December 2024 2,035,744 39,257 2,075,001
Additions 275,119 - 275,119
At 30 June 2025 2,310,863 39,257 2,350,120
Amortisation and impairment
At 1 January 2024 163,115 39,257 202,372
Impairment charge for the year - - -
At 31 December 2024 163,115 39,257 202,372
Impairment charge for the period 1,285 - 1,285
At 30 June 2025 164,400 39,257 203,657
Net Book Value
At 30 June 2025 2,146,463 - 2,146,463
At 30 June 2024 958,721 - 958,721
At 31 December 2024 1,872,629 - 1,872,629
In the year to 31 December 2024, aggregate cash proceeds arising from the
farm-out of the Selence licence to Dana during the period amounted to
£1,091,345, including a foreign exchange gain of £10,082. An amount of
£922,933 was deducted from exploration and evaluation assets, being the
previously capitalised relating to the licence. The surplus of the proceeds
over the carrying value amount to £108,987 and was recognised as a gain on
disposal in the year to 31 December 2024.
In the year to 31 December 2024, the Company recognised an impairment in the
year of £18.0 million resulting from the decision to notify the partners of
License P2252 of the Company's intention of withdraw from the Pensacola
licence and a write down of £0.4 million was recognised in the year to 31
December 2024 resulting from the relinquishment of P2542 (Syros).
5. TRADE AND OTHER PAYABLES
30 June 2025 30 June 2024 31 December 2024
£ £ £
Current:
Trade payables 198,105 763,259 77,543
Social security and other taxes 37,698 49,686 78,072
Joint arrangement working capital liability 60,196 1,214,471 24,701
Other payables and accruals 1,640,310 85,475 1,411,054
Total lease liabilities 1,936,309 2,112,891 1,591,370
Included within other payables and accruals is £1.3 million (2024: £1.3
million) payable to Shell relating to the overspend on the Selene well which
has resulted in unexpected costs being allocated to the Company.
6. LEASE ARRANGEMENTS
Right of use assets
The Company uses leasing arrangements for its office for which a right of use
asset is included in property, plant and equipment. When a lease begins, a
liability and right of use asset are recognised based on the present value of
future lease payments. The movements in the right of use asset are presented
under the office lease category. During the period, the Company entered into a
new lease for their office premises.
Lease liabilities
30 June 2025 30 June 2024 31 December 2024
£ £ £
Amounts payable at 1 January 22,837 135,628 135,628
Effective interest expense 8,617 6,223 8,882
New lease arrangement 509,648 - -
Lease payments (46,581) (59,303) (121,673)
Total lease liabilities 494,521 82,548 22,837
92,805 82,548 22,837
Amounts payable within one year
401,716 - -
Amounts payable after one year
7. SHARE CAPITAL
a) Share Capital
The Company has one class of ordinary share which carries no right to fixed
income nor has any preferences or restrictions attached.
Issued and fully paid:
30 June 2025 30 June 2024 31 December 2024
£ £ £
93,096,600 ordinary shares of 10p each 9,309,660 9,309,660 9,309,660
(30 June 2024: 93,096,600 ordinary shares of 10p each)
8. COPIES OF INTERIM REPORT
Copies of the interim report are available to the public free of
charge from the Company at Deltic Energy Plc, First Floor, 150 Waterloo Road,
London, SW1P 3JS during normal office hours, Saturdays and Sundays excepted,
for 14 days from today and will shortly be available on the Company's website
at www.delticenergy.com (http://www.delticenergy.com) .
Investing Policy
In addition to the development of the North Sea Oil & Gas assets Deltic
Energy Plc has acquired to date, the Company proposes to continue to evaluate
other potential oil & gas and mining projects globally 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 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 per cent. 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.
Forward looking statements
This interim 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.
**ENDS**
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