Deltic Energy PLC (AIM:DELT) has completed its farm-out transaction bringing Dana Petroleum into the Selene exploration venture.
The project, led by operator Shell, aims to drill the Selene exploration well in the North Sea later this year.
It is seen as a promising follow-up venture to Shell and Deltic’s discovery in their previous programme at the nearby Pensacola project.
At Selene, the preparations are described as “on-track” with operations expected to get underway in July.
"We are delighted to announce the completion of the farm-out of Licence P2437 and formally welcome Dana to the joint venture,” chief executive Graham Swindells said in a statement.
“Well planning remains on schedule and we are looking forward to commencing Selene well operations with Shell and Dana in the summer.”
He added: “Our attention is now firmly focussed on drawing the Pensacola farm-out process to a successful conclusion and we look forward to updating the market in due course."
Dana Petroleum acquired a 25% interest in the Selene project and will cover Deltic's remaining share of costs for the upcoming well, up to a cap of $49 million – which,is said to be in excess of the current success case well cost estimates provided by Shell.