Deltic
Energy Plc / Index: AIM / Epic: DELT / Sector: Natural
Resources
8 July 2024
Deltic
Energy Plc ("Deltic" or "the Company")
Formal
Award of UKCS Licence - 33rd Offshore Licensing
Round
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 pleased to announce that
it has accepted one of the two licences that were provisionally
awarded by the North Sea Transition Authority ("NSTA") in Tranche 3
of the UK's 33rd Offshore Licensing Round
("33rd Round").
Licence P2672 (Deltic 100% WI) is
located immediately to the west of the West Sole gas field and
covers blocks 47/5e, 47/10c and 48/6c and contains the Pharos and
Teviot discoveries. Deltic's preliminary evaluation,
completed as part of the application process, has resulted in an
updated understanding of the structural setting, which suggests
that the Pharos discovery and the Blackadder prospect are in fact a
single Leman Sandstone structure.
Deltic's preliminary volumetrics for
the two discoveries on the licence are summarised below:
|
Project ID
|
Discovery
Well
|
Prospective Resources
(BCF)
|
GCoS
%
|
|
P90
|
P50
|
P10
|
|
Blackadder/Pharos
|
47/05d-6
|
66
|
165
|
293
|
65%*
|
|
Teviot
|
47/10-8
|
9
|
17
|
27
|
65%*
|
*Both wells encountered gas-bearing
Leman Sandstone, however neither well was flow tested so there is
residual risk related to reservoir effectiveness.
The 47/05d-6 well, drilled by a
consortium led by Dana Petroleum in 2013, targeted what was
originally interpreted to be a standalone prospect formerly called
Pharos, however updated structural mapping indicates the well
intersected the materially larger Blackadder structure in a downdip
location.
The initial 3 year Phase A work
programme commitments for the licence are focused on the
reprocessing of legacy 3D seismic data to improve reservoir imaging
and refine the structural model in order to further de-risk the
Blackadder structure at nominal cost.
Graham Swindells, CEO of Deltic, commented:
"The Blackadder project has many analogous attributes to the
Selene prospect, where the reworking of legacy datasets has
unearthed a potential missed pay opportunity of material scale.
Blackadder's location, in close proximity to existing
infrastructure that requires new third party gas to defer
decommissioning, should enhance its value in a mature basin where
new licences are likely to become increasingly scarce. Over the
coming year we will progress our work on the legacy data in
preparation for farm-out, in anticipation of drilling an appraisal
well on Blackadder in due course."
**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)
Adam James / Ana
Ercegovic
|
Tel: +44 (0) 20 7523 8000
|
|
Vigo Consulting (IR
Adviser)
|
Tel: +44 (0) 20 7390 0230
|
|
Patrick d'Ancona / Finlay Thomson /
Kendall Hill
|
|
Reporting Standard
Estimates of resources have been
prepared in accordance with the PRMS as the standard for
classification and reporting.
Qualified Person's Review
Andrew Nunn, a Chartered Geologist
and Chief Operating Officer of Deltic, is a "Qualified Person" in
accordance with the 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
|
BCF:
|
Billion Cubic Feet
|
|
Geological Chance of Success (GCoS):
|
or prospective resources, means the
chance or probability of discovering hydrocarbons in sufficient
quantity for them to be tested to the surface. This, then, is the
chance or probability of the prospective resource maturing into a
contingent resource. Prospective resources have both an associated
chance of discovery (geological chance of success) and a chance of
development (economic, regulatory, market and facility, corporate
commitment and political risks). The chance of commerciality is the
product of these two risk components. These estimates have been
risked for chance of discovery but not for chance of
development.
|
|
P90
resource:
|
reflects a volume estimate that,
assuming the accumulation is developed, there is a 90% probability
that the quantities actually recovered will equal or exceed the
estimate. This is therefore a low estimate of
resource.
|
|
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.
|
|
P10
resource:
|
Reflects a volume estimate that,
assuming the accumulation is developed, there is a 10% probability
that the quantities actually recovered will equal or exceed the
estimate. This is therefore a high estimate of
resource.
|
|
PRMS:
|
the June 2018 Society of Petroleum
Engineers ("SPE") Petroleum Resources Management System
|
|
Prospective Resources:
|
Are 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
|