Deltic Energy formally awarded six new North Sea licences

(Sharecast News) - North Sea-focussed natural resources investment company Deltic Energy reported on Tuesday that, further to the provisional award of new licences in the UK's 32nd Offshore Licensing Round in September, six new licences comprising 12 blocks had now been formally awarded by the Oil and Gas Authority.
The AIM-traded firm said each of the licences was taking effect from Tuesday.

It said the licences formally awarded included P2567, P2560, P2561 and P2562 on a 100% equity basis in the southern North Sea, and licence P2558 on a 30% basis in the same region.

They also included P2542 on a 100% basis in the central North Sea.

The board said all licences were awarded on a 100% equity position, with the exception of P2558, which was jointly awarded with Shell UK holding a 70% working interest.

It said it viewed the blocks as "highly prospective", and containing a variety of exploration prospects which would "significantly enhance" both the pipeline of potential drilling opportunities, and the overall prospective resources associated with the company's assets, as the areas were matured during the initial term of the licences.

The directors said the new licences reinforced the company's exploration-focussed strategy, which was based on creating a steady "conveyor belt" of licences that could be matured and support a long-term programme of exploration wells, with discoveries supporting the longevity of existing infrastructure and the development of new gas production hubs.

"We are delighted to be able to confirm that these new licences have been formally awarded following the announcement of provisional awards in early September," said chief executive officer Graham Swindells.

"Our company was one of the most successful applicants in what was a highly competitive licensing round, and the extent of the awards further reinforces the strong strategic position we have built up in the southern North Sea and our commitment to continuing to grow and advance our exploration assets towards drilling, as we have done with Shell on Pensacola and Selene.

"We are now commencing work to progress the many opportunities on these exciting new licences and look forward to providing further updates in due course."

At 1104 GMT, shares in Deltic Energy were up 5.44% at 1.32p.