Deltic Energy plc has progressed work on its Southern North Sea gas licences as it considers options for funding its share of operations.
BLACKADDER
Post-well analysis and pre-field development planning work has started, adding to current data on the Selene joint venture gas project.
P2437 licence has entered its second term with work to date focused on analysis of 2024 data and samples.
Deltic expects “significant” data over the coming months which will be integrated into subsurface and reservoir models.
The project partners are also considering revising legacy 3D seismic dataset last reprocessed more than 10 years ago.
Modern processing techniques might also be applied to improve seismic image quality and refine the structural model.
Results of reprocessed data would be available towards the first quarter of 2026.
Deltic is looking at “a number of options” to fund its share of operations on Selene, including a further farm-out, partial sale of its interest, pre-payment against future gas sales, and seeking new strategic shareholders.
Chief executive Andrew Nunn said that cost cutting in late 2024 and year-end cash of £1.4 million gave “sufficient flexibility” to progress potential funding options towards a final investment decision on Selene and beyond.
The company has additionally reviewed the prospectivity of the Endymion structure located on the northeast corner of P2437.
An extension of the depleted Mimas gas field, Endymion has undergone recent model updates.
Deltic estimates that the prospect contains P50 prospective resources of 70 billion cubic feet with more than a 75% geological chance of success.
Any drilling will only follow a FID on the core Selene development.
A farm-out process has also started for licence P2672, containing the legacy Blackadder prospect and the Pharos discovery.
The company’s revised structural mapping suggests that the prospect and discovery were “likely a single structure” and “extensively” de-risked by the Pharos 2013 well.
Deltic estimates the structure to contain P50 prospective resources of 165bcf with the main outstanding risks related to reservoir quality and ability to produce.
Central North Sea licence P2646 containing the Dewar oil exploration prospect remains in “care and maintenance” mode with no costs other than fees expected during 2025.
The company said that the prospect was “robust” but “significant challenges” existed over access to export infrastructure.
Deltic will review the prospect during 2026 before deciding whether to seek a partner.