REG - Deltic Energy PLC - Licence P2428 – Completion of 3D Seismic Survey

Deltic EnergyAnnouncement

23/11/2021 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:20211123:nRSW1775Ta&default-theme=true

RNS Number : 1775T  Deltic Energy PLC  23 November 2021

 

23 November 2021

 

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

 

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

 

Licence P2428 - Completion of 3D Seismic Survey

 

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 the 3D seismic survey over
Licence P2428 and surrounding areas has now been completed.

Following the announcement of Deltic's farm-out agreement with Cairn Energy
PLC ("Cairn") on 12 August, the Company announced the commencement of the 3D
seismic survey over Licence P2428 on 10 September 2021. The seismic vessel,
under contract to ION Geophysical, was mobilised to site to acquire
approximately 680km(2) of new 3D seismic data over the Plymouth Zechstein Reef
prospect and surrounding areas on Licence P2428. Acquisition of the 3D seismic
data was completed on 21 November and the vessel will now be demobilised back
to its home port.

The data collected will now be processed by ION to pre-stack depth migration
('PSDM') with the final results expected to be delivered in Q2 2022.

 

Under the farm-out agreement, Cairn is responsible for 100% of the costs of
the seismic acquisition, processing and associated work programmes up to the
point at which a positive well investment decision is made.

Following the completion of the farm-out with Cairn, Deltic now holds a 40%
non-operated interest in Licence P2428. The licence contains the key Plymouth
prospect, a large Zechstein carbonate build-up, which is analogous to Deltic's
Pensacola Prospect and the Crosgan discovery.

Further upside on the block is associated with the Cupertino and Richmond
prospects which will also be further evaluated using the newly acquired 3D
seismic data.

Graham Swindells, Chief Executive of Deltic Energy, commented:

"Successfully completing the acquisition of this new 3D seismic data
represents another important  step forward as we further progress this highly
prospective licence with Cairn towards future drilling. The results of this
high quality modern 3D seismic survey are expected to significantly enhance
our understanding of the multiple gas prospects on P2428 and will be key to
de-risking future drilling on this licence."

 

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

 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 Adviser)                                                   Tel: +44 (0) 20 7390 0230

 Patrick d'Ancona / Chris McMahon / Oliver Clark

 

Notes to Editors

Deltic Energy Plc

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.

 

Licence P2428 (Cupertino Area)

The P2428 licence area was awarded in the UK's 30(th) Offshore Licensing Round
and contains multiple prospects and leads at different geological levels.
 The key prospect identified by Deltic is the Plymouth Prospect, a large
Zechstein carbonate build-up, which is analogous to Deltic's Pensacola
Prospect and the Crosgan discovery.  Other prospects have been identified in
the Leman Sandstone (Richmond) and the Carboniferous sections (Cupertino).
 The area is currently imaged on legacy 2D seismic data dating back to the
early 1990s and the new 3D seismic has been acquired to support a well
investment decision on this licence.

Deltic holds a 40%. interest in Licence P2428.  Cairn (60%) is now operator
and is paying 100% of the costs of an agreed forward work programme (which
includes the acquisition, processing and interpretation of the new 3D seismic
data) up to the date on which a well investment decision is made.

Subject to P2428 being the first licence on which a well investment decision
is made, Cairn will fund 70% of the costs of the first exploration well
drilled, subject to gross well cost cap of USD$25 million.

 

 

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  UPDFLFERLSLFFIL