Deltic Energy PLC (AIM:DELT) CEO Graham Swindells spoke with Proactive's Stephen Gunnion to reveal the details of its game-changing farm-out agreement for the upcoming Selene exploration well in the North Sea, featuring a partnership with Dana Petroleum.
SG: Can you tell us about the significance of the farm-out deal with Dana Petroleum for the Selene exploration well?
GS: Absolutely. This deal is transformative for us. Dana Petroleum, backed by the Korean National Oil Company, is taking a 25% stake and joining the Shell-operated venture. Their experience in the southern North Sea and successful track record in exploration not only validate the potential of Selene but also bring invaluable expertise to our operations.
SG: What makes the Selene prospect stand out in the North Sea exploration landscape?
GS: Selene is the largest unappraised structure of its class in the southern North Sea, with prospective resources estimated at 318 BCF, or over 50 million barrels of oil. What's particularly exciting is the high 70% chance of success, indicating a low-risk, high-reward opportunity for us.
SG: How is progress on the Selene and Pensacola prospects shaping up?
GS: We're making great strides. For Selene, site surveys are completed, and drilling schedules are set for July. Pensacola is also advancing well, with active farm-out processes indicating strong interest. These developments signify a thrilling exploration timeline ahead for us.
SG: Looking ahead, what can shareholders and potential investors expect from Deltic Energy?
GS: We anticipate a busy year filled with updates on drilling, licensing rounds, and portfolio expansion. Our aim is to significantly enhance shareholder value through strategic exploration and operational excellence. We're set on a path of discovery that promises substantial growth and opportunities.