Deltic Energy firmly focused on North Sea opportunities

Deltic Energy PLC is a London based oil and gas exploration business investing in the UK’s proven hydrocarbon provinces.

The company currently holds significant equity positions in a number of highly prospective licences in the Southern and Central North Sea.

() told investors Shell completed its site survey programme for the Pensacola exploration project in the North Sea. The well remains scheduled to be spudded in Q2 2022

Shell additionally confirmed a rig is available for the Pensacola well programme, Deltic added.

“The successful completion of the site survey programme, which is a key part of well planning and the final phase of preparatory offshore activities, represents the achievement of another important milestone in our steady progress towards drilling the Pensacola prospect,” said chief executive Graham Swindells.

The well site survey was conducted by Fugro GB North Marine Limited. It was completed on time and on budget, without incident.

Deltic Energy PLC (AIM:DELT, FRA:7RC) told investors that its partner, Royal Dutch Shell (NYSE:RDS.A) PLC, has completed a geophysical site survey over the planned Pensacola exploration well location in the Southern North Sea.

The survey was completed on time and without incident, it noted.

Deltic Energy PLC (AIM:DELT, FRA:7RC) chief executive Graham Swindells said he is extremely pleased with 2021 so far, as the North Sea company has seen great progress across its portfolio.

The comments, in Tuesday’s interim results statement, come as the company looks forward to the drilling of the Shell operated Pensacola exploration well and as a recently agreed joint venture with Cairn Energy is advancing exploration activities.

Investors in Deltic Energy PLC (LON:DELT) can now look forward to a ‘high-impact event’ now that Shell has confirmed the schedule for the Pensacola exploration well, according to Stifel.

The stockbroker repeated a ‘buy’ recommendation and hiked its target price to 2.7p (from 2.2p) suggesting some 57% upside to the current market price of 1.76p per share.

“Confirmation of a positive well investment decision from Shell to test the Pensacola prospect is a very welcome outcome and is the next important step in Deltic’s evolution,” analyst Chris McMahon said in a note.

Graham Swindells, CEO of Deltic Energy PLC (AIM:DELT) (LON:CLNR) explains to Proactive London how the company will benefit from a farm-out deal with Cairn Energy PLC (LSE:CNE) (LSE:CNE) (LSE:CNE) for five licences in the Southern North Sea.

Cairn will acquire between 60% and 70% of the licences and it will cover 100% of the agreed work programmes for each of the five licences. If the exploration assets advance to drilling, Cairn will cover 70% of the costs of the first well up to a maximum US$25mln.

Deltic will receive US$1mln upfront, representing a contribution towards historic back costs.