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Deltic completes farm-out with Cairn

Deltic Energy plc has completed the farm-out of five of its southern North Sea gas licences with Cairn Energy plc.

Accelerate: development of the licences and time to potential drilling (Pixabay)

SEISMIC

Both companies have received approval from the Oil and Gas Authority and entered into joint operating agreements for licences.

The agreement, through Cairn’s wholly owned subsidiary Nautical Petroleum Ltd, was first announced in August 2021.

In August, 3D seismic data began over P2428 (Cupertino Area) and surrounding areas.

ION Geophysical is currently acquiring some 700km2 of seismic data focused on the Plymouth Zechstein Reef prospect, aiming to de-risk future drilling.

The survey is expected to be complete before the end of November, with processed data expected during the second quarter of 2022.

Deltic chief executive Graham Swindells said that the agreement would see a significant investment in the company’s southern North Sea exploration portfolio.

“Ahead of completion of the transaction we have already begun working with Cairn to progress activities on the licences.

“I am particularly pleased that the new 3D seismic survey has commenced so quickly after announcement of the farm out, demonstrating a shared commitment to immediately accelerate the development of these licences and hence timeline to potential drilling.”