Deltic Energy PLC (AIM:DELT) has told investors that it is progressing well with plans for drilling the Selene exploration well and the Pensacola appraisal well, both scheduled for 2024.
The small-cap explorer, which is partnered with Shell in North Sea projects, at the same time noted a robust cash position, with £6.1 million at the end of November.
"This continues to be a busy year for Deltic, as we lay the foundations for what will be a very exciting and active 2024,” chief executive Graham Swindells said in a statement.
“Plans for the drilling programme for Selene and Pensacola are progressing well and we are working closely with our partners to advance and refine those, whilst also progressing options within our portfolio to realise value.
“We look forward to 2024 as we remain focussed on creating value for our shareholders."
The Selene well, located in the Southern North Sea, is on track for drilling in the third quarter of 2024, following the completion of initial site surveys. It is a substantial potential gas project, presently estimated to host some 318 billion cubic feet of gas and it has a comparatively high geological chance of success.
At the Pensacola oil and gas discovery, meanwhile, the partners are advancing plans to appraise the successes seen earlier this year.
The company noted that a well investment decision is expected to be formalised before the end of 2023, which could see drilling planned for late 2024.
Meanwhile, at the corporate level, Deltic told investors that it continues to explore options for realising value and reducing future capital expenditure on these projects. Deltic also said it has received significant interest from the industry for both assets.