REG - Deltic Energy PLC - Update on Capricorn Energy JV Licences

Deltic EnergyAnnouncement

27/07/2023 07:15

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RNS Number : 3092H  Deltic Energy PLC  27 July 2023

 

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

 

27 July 2023

 

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

Update on Capricorn Energy JV Licences

 

Deltic Energy Plc, the AIM-quoted natural resources investing company with a
high impact exploration and appraisal portfolio focused on the Southern and
Central North Sea, is providing an update in relation to the five Southern
North Sea gas exploration licences (the "Licences") held jointly with
Capricorn Energy PLC ("Capricorn").

 

Following recent changes at Capricorn that include a decision to exit from its
exploration assets outside Egypt, the Company has been formally notified of
Capricorn's intention to withdraw from the Licences.  As part of ongoing
rationalisation and high grading of its portfolio, Deltic has decided to
withdraw from three of the Licences (P2560, P2561 and P2562) and therefore the
JV partnership will move to relinquish these three licences as soon as
practicable.

 

With respect to Licences P2567 (Cadence) and P2428 (Cupertino), Deltic
recognises the significant prospectivity highlighted by the technical work
programmes completed by Capricorn on behalf of the JV and intends to continue
with these two licences following the withdrawal of Capricorn.

 

Across the P2567 and P2428 acreage position, the committed work programme has
been completed in relation to both licences, and Deltic has been fully carried
by Capricorn through nearly US$10 million of technical work to date including
the pre-funding of nearly 700km(2) of new 3D seismic as well as the
reprocessing of a number of legacy 3D seismic surveys.  During this intense
period of geological evaluation, the JV identified and matured 17 leads and
prospects in the Carboniferous with combined, gross P50 gas-initially-in-place
of more than 2.6 TCF, located on Licences P2567 and P2428 .  Many of these
prospects are analogous with the Pegasus and Andromeda discoveries located on
the blocks immediately to the south of these licences.

 

The current terms of Licences P2567 and P2428 are due to expire on 30 November
2023 and 31 March 2024 respectively and, once Deltic has been re-appointed as
Administrator of these licences, Deltic intends to request an extension of the
current licence terms from the North Sea Transition Authority ("NSTA").  If
such extension requests are approved by the NSTA, Deltic would continue to
assure and high grade the prospects identified and matured, while seeking to
attract another partner or partners to assist with future drilling activity
across the two licences.

 

Graham Swindells, Chief Executive of Deltic Energy, commented:

 

"While we would have preferred to continue in partnership with Capricorn on
these  exploration licences, Capricorn has recently changed strategic
direction. Our extensive work together has advanced our understanding of the
potential of the area; further demonstrated the excellent prospectivity
present on the two most advanced licences and allowed us to focus on those
licences showing excellent potential. We look forward to advancing the key
exploration prospects on this acreage."

 

"Following our success earlier this year with the Pensacola gas and oil
discovery, Deltic remains committed to exploring in the Southern North Sea
which has the potential to provide high quality UK based employment, tax
revenues and energy security while at the same time offsetting higher carbon
intensity imports as the UK continues its transition towards a net zero
future."

 

Qualified Person's Statement:

Andrew Nunn, a Chartered Geologist and Chief Operating Officer of Deltic, is a
"Qualified Person" in accordance with the AIM 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

 TCF:                     Trillion Cubic Feet

 gas-initially-in-place:  The quantity of gas that is estimated to exist originally in naturally
                          occurring accumulations before any extraction or production

 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

 

 

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

 David Hart / Alex Brearley (Corporate Finance)

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

 Callum Stewart / Simon Mensley / Ashton Clanfield

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

 Adam James / Gordon Hamilton

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

 Patrick d'Ancona / Finlay Thomson / Kendall Hill

 

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