Deltic Energy firmly focused on North Sea opportunities

Deltic Energy PLC is a natural resources investing company which has invested in a number of offshore oil & gas assets in the UK and is focused on realising the additional exploration potential of this proven hydrocarbon province.

Deltic Energy PLC (AIM:DELT) told investors that the Selene gas discovery continues to impress with the latest analysis resulting in a resource upgrade.

Contingent resources have increased by 33% to 174 billion cubic feet.

In the analysis, reservoir porosity and permeability were better than previous assumptions. modelling indicates higher initial production, longer plateau periods and greater recovery rates.

A new ‘mid-case’ production model now supports a 70 million standard cubic feet per day initial rate. And, updating the valuation estimates lifts NPV (net to Deltic) range to US$83 million and US$114 million depending on gas prices (80p per therm or 100p per therm).

Deltic Energy PLC (AIM:DELT) assets and operations continue to look strong and are advancing, the company highlighted in a stock market statement.

At the same time, the small-cap North Sea oil and gas firm is advancing funding efforts, and, notwithstanding what it called “extremely challenging conditions”, management sees a slight improvement in sentiments toward the industry in the UK.

Deltic Energy PLC (AIM:DELT) has given investors key insights into the Selene project’s economics, as it heads towards development.

It comes as the drill programme for the discovery well has now been completed and the rig demobilised earlier this week.

Small-cap oil and gas exploration in the North Sea isn’t as straightforward a business as it used to be.

A glance across London’s AIM market also tells us that among speculators it isn’t as popular as it used to be either.

Southern North Sea-focused E&P company Deltic’s joint venture with Shell has now approved the work programme and budget allowing for drilling of the planned appraisal well in late 2024.

Meanwhile, at Selene, operator Shell has confirmed that the geotechnical site investigation works on the preferred exploration well location have been completed, with the vessel now demobilised from the site.

The results of this work will be incorporated into the operational drilling plan, with Deltic reporting today that the planned well at Selene remains on track for drilling in the third quarter of next year.

Deltic Energy PLC (AIM:DELT) CEO Andrew Nunn talked with Proactive about the company's recent success at its Selene gas prospect in the southern North Sea. Nunn shared that the drilling revealed higher-than-expected porosity and permeability in the reservoir, boosting the potential for simpler and more efficient development. “The results we’re seeing from the logging suggest that we’ve got much higher porosity and permeability than what we expected pre-drill,” he explained. This translates to better production rates and may mean fewer wells are required.

Shell, the operator of the Selene prospect, along with partner Dana, brings strong expertise to the project, which is expected to proceed with a straightforward and low-cost development plan. The Selene project offers significant potential, even with a slightly lower-than-anticipated recoverable resource of 131 billion cubic feet.

Nunn emphasised that the resource quality supports a "very commercial" project for the basin. Next steps involve post-well analysis, with the aim of reaching a field development investment decision in 18 months to two years. Nunn also hinted at Deltic Energy’s broader ambitions, with the company exploring international opportunities for expansion.