Deltic Energy PLC (AIM:DELT, FRA:7RC) said a seismic exploration programme is set to kick off in its North Sea acreage, which was the subject of a farm-out to Cairn Energy recently.
ION Geophysical, the contractor for the programme, has now mobilised its vessel to the site and it expects to start the survey on Saturday. The programme is expected to run for six to seven weeks, with processed data due by mid-2022.
The 3D seismic programme is on Licence P2428 and its surrounding areas, with data set to be captured for a total area of around 700 square kilometres. It is targeting the Plymouth Zechstein Reef prospect.
"To be acquiring new 3D seismic so quickly after announcing our transformational farm-out with Cairn is another very positive development which will accelerate the development of our technical understanding of the opportunities on this licence,” said chief executive Graham Swindells.
“The survey represents another important milestone for Deltic and we are delighted to be participating in our first field operations with our new partner.
“The acquisition of high-quality modern 3D seismic over the licence area is a key step in de-risking future exploration drilling on this licence."
Cairn Energy will cover 100% of the costs, under the terms of the new partnership in which Deltic will retain a 40% stake in the exploration assets.
In August, Deltic announced the partnership with Cairn which will acquire interests between 60% and 70% across five licences.
Deltic gets US$1mln upfront, for historic back costs, and Cairn will cover costs including 70% of the first well up to a maximum US$25mln.