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Deltic Energy PLC (DELT)

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Thursday 05 November, 2020

Deltic Energy PLC

P2252 Licence Update

RNS Number : 3081E
Deltic Energy PLC
05 November 2020
 

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

 

5 November 2020

 

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

 

Deltic Energy Plc

("Deltic" or "the Company")

 

P2252 Licence Update and confirmation of drilling schedule

 

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, provides an update on activity relating to Licence P2252 which contains the Pensacola Prospect ("the Licence").

 

· Shell UK ("Shell" or "the Operator"), has reiterated its commitment to the drilling of the Pensacola well

· The Pensacola well remains on schedule for drilling in 2021

· Well planning, including design work and rig scoping has already begun

· In light of the current operating environment resulting from Covid-19, the Operator has been granted a short extension (to end March 2021) which will allow seismic data analysis to be fully completed before the final drilling decision is made

 

Deltic is pleased to report that Shell, in its capacity as Operator of the Licence, has reiterated to Deltic and the UK Oil and Gas Authority, its plan to drill the high impact, play opening Pensacola Prospect on Licence P2252 and that it remains scheduled to be drilled in Q4 2021.

 

A significant amount of technical work has been and continues to be undertaken by the Shell/Deltic Joint Venture ("the JV"). Following the 3D seismic which was shot over the licence last year, the JV is pleased to confirm that the seismic processing completed to-date and interpretations of the available data have demonstrated a robust image over Pensacola, which supports the prospectivity originally recognised by the JV at the time of the farm-in agreement.

 

This progress has allowed well planning on Pensacola to commence. Well design work is underway and competitive scoping of the exploration well is in the process of being completed.

 

Covid-19 has impacted the work schedule of the seismic processing; in particular the logistical restrictions which have affected the JV's ability to analyse the seismic data together. One aspect of this has been the identification of the presence of chalk at the seabed in a small section in the north of the seismic dataset and, while this has no material impact on the reservoir, it requires more intensive seismic processing to improve image resolution. Accordingly, the Operator, has requested and the UK Oil and Gas Authority has granted a short extension to the date by which the Contingent Well Commitment becomes a Firm Well Commitment until 31 March 2021. The well remains scheduled to be drilled in Q4 2021.

 

The additional processing being carried out by Shell will further de-risk the Pensacola prospect, help refine the range of volumes and exact well location and is a key enabler of Shell's internal approval processes. Other workflows including refinement of recoverable gas resources, analogue studies, detailed well engineering and development options are continuing in parallel with this additional seismic processing work, which will support the ongoing well planning process. Shell will continue to carry 100% of Deltic's costs until the well investment decision is made.

 

Graham Swindells, Chief Executive of Deltic Energy, commented:

 

"I am very happy to report Shell's continued commitment to explore for gas with us at the high impact Pensacola Prospect and that the well remains on track to be drilled in 2021. The additional time granted will allow final work to be completed to ensure we get the best placed, best designed well to test this prospect - our work has only increased our excitement for a North Sea play that is proven in many parts of Europe. Despite the challenging times, the rigorous technical work means Pensacola has moved into well design and planning, while at the same time we have recently been provisionally awarded a series of new licences including the drill-ready Cadence Prospect in order to continue executing our strategy of building a 'conveyer belt' of North Sea exploration opportunities."

 

 

**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 / Asha Chotai (Corporate Finance)

Kelly Gardiner (Equity Sales)

 

 

Stifel Nicolaus Europe Limited

(Joint Broker)

 

Tel: +44 (0) 20 7710 7600

Callum Stewart / Simon Mensley / Ashton Clanfield

 

 

Vigo Communications

  (PR & IR Adviser)

 

(PR & IR Adviser)

 

 

 

Tel: +44 (0) 20 7390 0230

 

 

 

Patrick d'Ancona / Chris McMahon / Simon Woods

 

 

 

 

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