REG - Deltic Energy PLC - Positive Well Investment Decision on Selene

Deltic EnergyAnnouncement

26/07/2022 07:00

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RNS Number : 6808T  Deltic Energy PLC  26 July 2022

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(EU) No. 596/2014 which forms part of domestic UK law pursuant to the European
Union (Withdrawal) Act 2018 ("UK MAR"). With the publication of this
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now considered to be in the public domain.

 

26 July 2022

 

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

 

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

 

Positive Well Investment Decision on Selene

Deltic Energy Plc is pleased to confirm that it and Shell U.K. Limited
("Shell"), its Joint Venture Partner on Licence P2437 (the "Licence"), have
made a positive well investment decision to drill the high impact Selene Gas
Prospect on Licence P2347 situated in the UK Southern North Sea off the North
East coast of England.

The UK industry's regulator (North Sea Transition Authority) has been informed
of the well investment decision which will facilitate the Licence entering its
next phase. While the timing of a well slot has yet to be confirmed and will
be subject to drilling schedules, this is expected to be firmed up as the
Joint Venture progresses its well planning.

Under the terms of the original farm-out with Shell, Deltic holds a 50%
working interest in the Licence but will be carried for 75% of the costs of
drilling and testing the well on the Selene prospect, up to $25 million and,
as a result of the well investment decision, Shell will be appointed Operator
of the Licence.

The Selene Prospect is one of the largest unappraised structures in the Leman
Sandstone fairway of the Southern Gas Basin and Deltic estimates Selene to
contain gross P50 Prospective Resources of 318 BCF of gas (with a P90 to P10
range of 132 to 581 BCF) with a geological chance of success of 70%.

With technical and commercial evaluation complete, the Deltic team looks
forward to progressing into this next phase as the Joint Venture now moves on
to detailed well design, planning, rig procurement and other key preparations
to support drilling operations.

 

Graham Swindells, Chief Executive of Deltic Energy, commented:

"This is a very exciting time for Deltic as we move into the next phase of our
strategy, building on the strong platform created by farm outs to both Shell
and Capricorn. The commitment to drill this material, high impact, low risk
gas prospect is another highly significant milestone for Deltic and our team.
Adding another committed well to our programme, following recent confirmation
that Pensacola will be drilled in September, represents further endorsement of
the quality of Deltic's assets as well as demonstrating the success of our
strategy to create a conveyor belt of exploration opportunities moving from
licensing to drilling with world-class partners in place."

 

Qualified Person's statement

Andrew Nunn, a Chartered Geologist and Chief Operating Officer of Deltic
Energy Plc, is a "Qualified Person" in accordance with the AIM Note for
Mining, Oil and Gas Companies of the London Stock Exchange. Andrew has
reviewed and approved the information contained within this announcement.

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

 Patrick d'Ancona / Finlay Thomson / Kendall Hill

 

 

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.
 P90:                     a 90% probability that a stated volume will be equalled or exceeded
 P50:                     a 50% probability that a stated volume will be equalled or exceeded
 P10:                     a 10% probability that a stated volume will be equalled or exceeded

 

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