Deltic Energy plc will withdraw from three of its five joint venture gas licences in the southern North Sea following its partner Capricorn Energy‘s move to focus on its own Egyptian assets.
NEW PARTNERS
Deltic, which is rationalising and “high grading” its portfolio, will withdraw from P2560, P2561 and P2562 while retaining P2567 (Cadence) and P2428 (Cupertino).
Both have undergone a near $10 million technical work programme, through which Deltic was fully carried by Capricorn, including the pre-funding of nearly 700km2 of new 3D seismic and reprocessing of a number of legacy 3D seismic surveys.
“During this intense period of geological evaluation, the JV identified and matured 17 leads and prospects in the Carboniferous with combined, gross P50 gas-initially-in-place of more than 2.6 TCF, located on Licences P2567 and P2428,” added Deltic in a statement.
“Many of these prospects are analogous with the Pegasus and Andromeda discoveries located on the blocks immediately to the south of these licences.”
Once re-appointed as administrator of the licences, Deltic will request an extension for P2567 and P2428 which are due to expire on 30 November 2023 and 31 March 2024 respectively.
On approval, the company aims to attract another partner or partners for future drilling.
COMMITMENT
“While we would have preferred to continue in partnership with Capricorn on these exploration licences, Capricorn has recently changed strategic direction,” added chief executive Graham Swindells.
“Following our success earlier this year with the Pensacola gas and oil discovery, Deltic remains committed to exploring in the southern North Sea which has the potential to provide high quality UK based employment, tax revenues and energy security while at the same time offsetting higher carbon intensity imports as the UK continues its transition towards a net zero future.”
Deltic said it had received formal notification from Capricorn of its intentions to withdraw from the licences.
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