Deltic Energy PLC (AIM:DELT) CEO Graham Swindells joined Proactive's Stephen Gunnion with details of a transformative farm-out deal for its upcoming Selene exploration well in the North Sea with Dana Petroleum.
The deal sees Dana taking 25% and joining the Shell-operated venture.
Swindells said the collaboration is pivotal, as Dana, backed by the Korean National Oil Company, brings a wealth of experience and a successful track record in exploration, particularly in the southern North Sea. Its involvement not only validates the potential of the prospects for Selene but also leverages its expertise in similar operational fields.
Selene, the largest unappraised structure in its class within the southern North Sea, boasts significant prospective resources estimated at 318 BCF, equating to over 50 million barrels of oil, with a high 70% chance of success, reflecting its low-risk, high-reward nature.
Swindells noted that progress on the Selene prospect is advancing smoothly, with site surveys completed and drilling schedules confirmed, setting a thrilling exploration timeline for July, followed by the company's Pensacola well. Moreover, Deltic is actively progressing the farm-out process for Pensacola, indicating a robust interest level and ongoing discussions for potential partnerships.
Looking ahead, Deltic anticipates a busy year with further updates on drilling, licensing rounds, and portfolio expansion, aiming to significantly enhance shareholder value through strategic exploration and operational excellence.