Deltic Energy plc said its future looked “extremely bright” as it moves into the development phase of its offshore gas interests in the southern North Sea (SNS).
STRATEGY
In audited results for 2022, chief executive Graham Swindells added the company expected to conduct appraisal work on Pensacola and Selene wells, “each of which will be high impact catalysts”.
“Pensacola entirely vindicates our long-term business strategy of identifying high-value exploration assets at a very early stage and bringing them to fruition.
“We are now in the enviable position of deciding how best to appraise and develop this 300 bcf discovery alongside our partners, and delivering value for shareholders.”
The company expects to drill the Selene gas prospect during the Summer of 2024.
Deltic continues to work with Capricorn Energy on its other SNS licences and the farm-out process on the Syros oil prospect in the central North Sea is ongoing.
During the year, the company also applied for “a number of new licences” in the UK licensing round to “enhance its portfolio of drilling opportunities”.
“With this drilling activity coupled with additional prospectivity from the rest of our portfolio and potential new licence awards, I believe the future looks extremely positive for Deltic.”
FINANCES
Deltic recorded an increase in losses of £2,989,404 (2021: £1,935,052) while administrative expenses also rose to £2,745,350 (2021: £1,912,987).
A write down of £347,610 resulted from the relinquishment of licences P2435 containing the Blackadder prospect and P2537 (Dewar) .
This compares with an impairment in 2021 of £288,551 from relinquishing licence P2384 (Manhattan) and P2424 (Cortez).
The company had a cash balance of £20,409,692 (2021: £10,092,205) mainly from £15,958,850 via a placing of 455,967,137 ordinary shares.
The value of exploration assets increased to £9,769,477 (2021: £2,203,118) reflecting the start of Pensacola drilling operations in November 2022, offset by the write down.
Deltic has no debt.