Deltic Energy plc has withdrawn from the southern North Sea Pensacola discovery after being unable to find funding or a farm-in partner.
INFRASTRUCTURE
Operator Shell UK Ltd last week allowed more time to secure a solution for its 30% interest in licence P2252, but Deltic today said it was could not commit to an appraisal well.
The company will begin the process of transferring its equity in the licence to the remaining partners.
Following withdrawal, the company might need to pay certain costs in relation to the appraisal well, possibly during H1 2025.
Deltic will meanwhile concentrate on its two existing interests and one of the two provisionally offered licences in tranche 3 of the 33rd licensing round.
The Selene exploration well (25%) within licence P2437, is due to be drilled during the first half of July.
The farm-out for Deltic’s 100% working interest in the central North Sea Syros prospect within licence P2542 is in the process of closing, although discussions continue.
Additionally, the company will focus on the licence holding the Pharos-Blackadder discovery containing a mixture of small discoveries and low risk, infrastructure-led exploration prospects.
Located next to production infrastructure associated with the West Sole field, the licence comprises blocks 47/5b, 47/10c and 48/6c.
“Despite our disappointment at not remaining involved in Pensacola, the technical and commercial skills and experience demonstrated on the asset will be critical as we now focus on the Selene opportunity and similar infrastructure-led projects such as Syros and Blackadder,” added chief executive Graham Swindells.
“We believe these can be brought on stream more quickly, help maintain the viability of existing infrastructure and defer decommissioning of key production hubs which continue to generate interest despite the general malaise affecting the UK E&P industry.”