Deltic Energy PLC (AIM:DELT) described a “transformational year” as it published its financial results statement for 2023, which saw the breakthrough Pensacola discovery in the Southern North Sea in February.
“As one of the area's biggest discoveries in the past ten years, this was a fantastic result for the company and is testament to the hard work carried out in the years leading up to this point,” chief executive Graham Swindells said in the statement.
“We continue to prepare for an appraisal well on Pensacola in the fourth quarter this year, which I believe will take us a step closer towards commerciality.”
Pensacola is one of two North Sea exploration projects being led by joint venture Shell PLC (LSE:SHEL, NYSE:SHEL).
The other, Selene, was also boosted recently as Deltic stuck a deal with Dana Petroleum which will support the AIM-quoted firm’s funding requirements for the project.
Looking to Selene, Swindells added: “During 2023 we also continued to progress our equally significant Selene exploration prospect, culminating in an excellent farmout in early 2024.
“We are now in the enviable position of drilling two consecutive wells in the second half of the year, with two world-class partners in Shell and Dana.
"I am delighted with the progress that Deltic made in 2023 and firmly believe we can continue on this trajectory throughout 2024.
“The UK needs to bolster its security of energy supply more than ever and I believe that Deltic will play a key role in this."
In terms of financials, the explorer confirmed a robust position ending the financial year with £5.6 million.
The pre-revenue explorer reported a £14.8 million net cash outflow, with the funds largely deployed to Pensacola and other exploration activities.