REG - Deltic Energy PLC - Licence P2252 – Confirmation of Rig Contract

Deltic EnergyAnnouncement

29/06/2022 07:00

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RNS Number : 5408Q  Deltic Energy PLC  29 June 2022

 

The information contained within this announcement is deemed by the Company to
constitute inside information for the purposes of Regulation 11 of the Market
Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this
announcement via a Regulatory Information Service, this inside information is
now considered to be in the public domain.

 

29 June 2022

 

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

 

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

 

Licence P2252 - Confirmation of Rig Contract

 

Deltic Energy Plc, the AIM quoted natural resources investing company with a
high impact, natural gas focussed exploration and appraisal portfolio in the
Southern North Sea, is pleased to announce that Shell UK Ltd ("Shell"), the
Operator of Licence P2252, has confirmed that a rig contract has been signed
for the drilling of the Pensacola exploration well.

Pensacola will be drilled using the Maersk Resilient, a high efficiency
jack-up rig, which has been   under contract to Shell since the start of
June and is currently drilling a production well in the Southern North Sea.
Use of the Maersk Resilient should bring significant operational efficiencies
that are naturally associated with being part of an extended programme of
wells.

Drilling of Pensacola remains scheduled to commence in the second half of
September with seabed operations for placing of the rig due to commence
towards the end of July.

Confirmation of the rig contract is a significant step forward for Deltic and
a key milestone in the preparatory work required to support the drilling of
this exciting prospect.

Pensacola is a Zechstein Reef prospect located to the north west of the Breagh
gas field in the Southern North Sea. Deltic estimates the prospect to contain
gross P50 Prospective Resources of 309 BCF, with a 55% geological chance of
success, which will rank Pensacola as one of the highest impact exploration
targets to be drilled in the gas basin in recent years.

The Pensacola well is also being highly anticipated by the industry for its
potential to unlock a significant new source of gas to the UK from the
Zechstein Reef play, which has been successfully produced in NW Europe from
Poland to The Netherlands. It also has the potential to demonstrate that the
UK still has a significant level of previously unrecognised exploration upside
which can deliver cost competitive natural gas to UK based businesses and
homes and support the UK's Net Zero targets.

The Company remains funded for its 30% share of the Pensacola well costs.

 

Graham Swindells, Chief Executive of Deltic Energy, commented:

"The signing of the rig contract coupled with the firming up of the drilling
schedule is exciting news for Deltic as we move further down the runway
towards the drilling of the Pensacola gas prospect. Pensacola is an
increasingly valuable asset in the current energy environment and confirmation
that the JV has now secured a high quality drilling rig with an experienced
team for the well is another key milestone as our planning continues to
progress towards the drilling of this high impact prospect."

 

**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 & Joint Broker)                                         Tel: +44 (0) 20 3328 5656

 David Hart / Alex Brearley (Corporate Finance)
 Kelly Gardiner (Sales and Corporate Broking)

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

 Callum Stewart / Simon Mensley / Ashton Clanfield

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

 Patrick d'Ancona / Finlay Thomson / Oliver Clark

 

Glossary of Technical Terms

BCF:     Billion Cubic Feet of gas

Prospective Resources:   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.

P50:     a 50% probability that a stated volume will be equalled or exceeded

 

Notes to Editors

Deltic has created a strategically located portfolio of high-quality gas
exploration licences in the Southern North Sea over a number of licensing
rounds.  These licences are located in areas that have been underexplored
despite significant discoveries such as Tolmount, Breagh, Pegasus and Cygnus,
most of which have gone on to be developed and could provide ready access to
export infrastructure for any future developments on Deltic's licence acreage.

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