Deltic Energy plc remains committed to exploration within the UK despite political and fiscal challenges and uncertainly from the Energy Profits Levy (EPL).
PORTFOLIO
Chief executive Graham Swindells said that the EPL continued the “attractiveness” of investing in the company’s projects which drew tax relief.
“Nonetheless, the existence of the EPL does nothing for investor or industry confidence, noting that a stable, reliable fiscal regime is essential if domestic production is to be maintained.”
Full year results for a “transformational” 2023 saw cash balances fall to £5.6 million (2022: £20.4m) mainly from drilling the Pensacola well.
Net cash outflow for the year totalled £14.8m (inflow £10.3m) following funding Pensacola exploration drilling and other exploration investments.
Deltic spent £2.2m (£700,000) progressing its portfolio, targeting a two-well drilling programme this year.
Selene, the “largest untested structure of its kind in the southern North Sea” with gross P50 prospective resources of 318bcf gross and 53mmboe, is scheduled for drilling in July.
Pensacola, with partners Shell and ONE-Dyas, is scheduled to undergo appraisal drilling during Q4 2024 after the start of Selene.
Deltic continues the farm-out process for its Syros licence in the central North Sea close to the Montrose-Arbroath fields.
The company said it was in dialogue with “potential counter-parties” to secure a deal before the end of 2024 when it needs to commit to a well in order to progress to the next phase of the licence.