Deltic Energy plc has completed its 25% farm-out of southern North Sea licence P2437, containing the Selene gas prospect, to Dana Petroleum (E&P) Ltd.
JOINT VENTURE
The prospect holds gross P50 prospective resources of 318 bcf over 228km2, being “one of the largest undrilled structures in the world class Permian Leman Sandstone Fairway”.
The transaction, combined with the existing carry by 50% operator Shell UK Ltd, results in Deltic retaining a 25% non-operated interest.
The company also has no 2024 drilling and testing costs up to a cost cap of US$49 million gross.
Completion of the farm-out follows regulatory and partner approval.
Deltic said that the Selene well operations remained on course to start in July, using the heavy duty jack-up rig Valaris 123.
“We are delighted to announce completion of the farm-out of licence P2437 and formally welcome Dana to the joint venture,” added chief executive Graham Swindells.
“Our attention is now firmly focused on drawing the Pensacola farm-out process to a successful conclusion.”
Deltic was awarded the licence in October 2018.