Licence P2428 - Completion of 3D Seismic Survey
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 680km2 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:
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Deltic Energy Plc |
Tel: +44 (0) 20 7887 2630 |
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Graham Swindells / Andrew Nunn / Sarah McLeod |
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Allenby Capital Limited (Nominated Adviser & Joint Broker) |
Tel: +44 (0) 20 3328 5656 |
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David Hart / Alex Brearley (Corporate Finance) |
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Kelly Gardiner (Sales and Corporate Broking) |
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Stifel Nicolaus Europe Limited (Joint Broker) |
Tel: +44 (0) 20 7710 7600 |
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Callum Stewart / Simon Mensley / Ashton Clanfield |
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Vigo Consulting (IR Adviser) |
Tel: +44 (0) 20 7390 0230 |
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Patrick d'Ancona / Chris McMahon / Oliver Clark |
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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 30th 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.
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