Deltic Energy PLC Licence P2252 -- Confirmation of Rig Contract (5408Q)
June 29 2022 - 1:00AM
UK Regulatory
TIDMDELT
RNS Number : 5408Q
Deltic Energy PLC
29 June 2022
The information contained within this announcement is deemed by
the Company to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations
2019/310. With the publication of this announcement via a
Regulatory Information Service, this inside information is now
considered to be in the public domain.
29 June 2022
Deltic Energy Plc / Index: AIM / Epic: DELT / Sector: Natural
Resources
Deltic Energy Plc ("Deltic" or 'the Company')
Licence P2252 - Confirmation of Rig Contract
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 Shell UK Ltd ("Shell"), the Operator of Licence
P2252, has confirmed that a rig contract has been signed for the
drilling of the Pensacola exploration well.
Pensacola will be drilled using the Maersk Resilient, a high
efficiency jack-up rig, which has been under contract to Shell
since the start of June and is currently drilling a production well
in the Southern North Sea. Use of the Maersk Resilient should bring
significant operational efficiencies that are naturally associated
with being part of an extended programme of wells.
Drilling of Pensacola remains scheduled to commence in the
second half of September with seabed operations for placing of the
rig due to commence towards the end of July.
Confirmation of the rig contract is a significant step forward
for Deltic and a key milestone in the preparatory work required to
support the drilling of this exciting prospect.
Pensacola is a Zechstein Reef prospect located to the north west
of the Breagh gas field in the Southern North Sea. Deltic estimates
the prospect to contain gross P50 Prospective Resources of 309 BCF,
with a 55% geological chance of success, which will rank Pensacola
as one of the highest impact exploration targets to be drilled in
the gas basin in recent years.
The Pensacola well is also being highly anticipated by the
industry for its potential to unlock a significant new source of
gas to the UK from the Zechstein Reef play, which has been
successfully produced in NW Europe from Poland to The Netherlands.
It also has the potential to demonstrate that the UK still has a
significant level of previously unrecognised exploration upside
which can deliver cost competitive natural gas to UK based
businesses and homes and support the UK's Net Zero targets.
The Company remains funded for its 30% share of the Pensacola
well costs.
Graham Swindells, Chief Executive of Deltic Energy,
commented:
"The signing of the rig contract coupled with the firming up of
the drilling schedule is exciting news for Deltic as we move
further down the runway towards the drilling of the Pensacola gas
prospect. Pensacola is an increasingly valuable asset in the
current energy environment and confirmation that the JV has now
secured a high quality drilling rig with an experienced team for
the well is another key milestone as our planning continues to
progress towards the drilling of this high impact prospect."
**ENDS**
For further information please contact the following:
Deltic Energy Plc Tel: +44 (0) 20 7887
2630
Graham Swindells / Andrew Nunn / Sarah McLeod
Tel: +44 (0) 20 3328
Allenby Capital Limited (Nominated Adviser 5656
& Joint Broker)
David Hart / Alex Brearley (Corporate Finance)
Kelly Gardiner (Sales and Corporate Broking)
Tel: +44 (0) 20 7710
Stifel Nicolaus Europe Limited (Joint Broker) 7600
Callum Stewart / Simon Mensley / Ashton
Clanfield
Vigo Consulting (IR &PR Adviser) Tel: +44 (0) 20 7390
0230
Patrick d'Ancona / Finlay Thomson / Oliver
Clark
Glossary of Technical Terms
BCF: Billion Cubic Feet of gas
P rospect i ve Res o urces: 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.
P50: a 50% probability that a stated volume will be equalled or exceeded
Notes to Editors
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.
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