Deltic Energy PLC Update on Capricorn Energy JV Licences (3092H)
27 July 2023 - 4:00PM
UK Regulatory
TIDMDELT
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 Adviser) Tel: +44 (0) 20 3328
5656
David Hart / Alex Brearley (Corporate Finance)
Stifel Nicolaus Europe Limited (Joint Broker) Tel: +44 (0) 20 7710
7600
Callum Stewart / Simon Mensley / Ashton
Clanfield
Canaccord Genuity Limited (Joint Broker) Tel: +44 (0) 20 7523
Adam James / Gordon Hamilton 8000
Vigo Consulting (IR Adviser) Tel: +44 (0) 20 7390
0230
Patrick d'Ancona / Finlay Thomson / K endall
Hill
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