Member Info for Chambery

Biggest gas find in 10 years and 30% to be given away at cost/below cost or for a few hundred quid. No North sea oil/gas producer in sight to take it on to exploit using tax savings for next to nothing. Does not smell right to me. Either no gas or a stitchup

The contract must be split 70/30 for tax reasons Shell offsetting its cost by I think effectively 95%. Deltic cannot

and will be contracted to pay its full 30% costs. Business being Business I don't see why Shell should pay up for

Deltic if they cannot pay their share or default costs even if the licience defaults to Shell.

Has Deltic already entered into a contract to do the work on Pensacola?

Re RNS "The rig contract was entered into in February which secured the Valaris 123 heavy duty jack-up drilling unit to drill both the Selene exploration well and Pensacola appraisal well, with the Pensacola well due to be drilled immediately following completion of Selene operations."

What are they liable for in term of cash if they pull out.

*results in Deltic retaining a 25% non-operated interest in Licence P2437 and having no exposure to 2024 drilling and testing costs up to a cap in excess of current success case well cost estimates provided by the Operator."

Does this mean that Deltic pays its future 25% costs to take it to a production well?

Https://finance.yahoo.com/news/anavio-equity-capital-markets-master-121800796.html

Https://tradingeconomics.com/commodity/lithium

Electric cars must be falling in price.

Is this remote access to a 'Method' for minimg ? Makes no sense or is it just for evaluation?

Https://www.reuters.com/markets/commodities/us-uk-partners-working-15-critical-minerals-projects-2023-10-05/

'Periodic production is planned from H1 at lower rates to minimise water production' Production is being managed with gas prices.

Uk Gas prices on the move up, an added worry for some.

Selene Drill -- 75 % costs Shell / 25% Deltic…. to first £19m ($25m)… Deltic cost £4.75m

Selene Drill -- 50% Costs Shell & Deltic…. over £25m… Assume £10m overspend .. Deltic cost £5m

Selene Drill estimate cost to Deltic = £9.75m

Cash holding current estimate = £7.5 m

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Deltic when drilling Pensacola were targeting 309 BCF of P50 gas reserves

Re RNS 8 Feb 23

‘Deltic pre-drill volumetrics for Pensacola confirmed by well - P50 Estimated Ultimate Recovery ('EUR') of 302 BCF’

Re RNS 12 July 23

While the expected presence of oil in the south of the prospect represents highly material upside, the discovered gas volumes in the northern part of the Pensacola prospect are better constrained and therefore the gas is still likely to be the initial focus of near-term appraisal and development activity.

Deltic estimates the range of potentially recoverable oil and gas associated with the Pensacola discovery as follows: GAS --- P50 of 320 BCF

The double expectations seems to be oil based.

A good result, however the target is Gas and the Oil sometime in the future?

Dr P email = ir@delticenergy.com as on contacts page.

Dr P the point you make regarding Deltic being able to carry forward exploration costs as a tax allowance against future income is one I have addressed with Deltic who gave no definitive response. You May do better if you ask.

Considering the implication of Deltic being able to do so you would of thought they would have sung it to the high hills. They haven't so .... more investigation perhaps GL

The total net cost to Deltic of drilling the Pensacola well was £12.8 million. This is 30% of the total cost,so Shell/Dyas paid 70% or £34.9m with possible tax relief of 91% giving Shell investment of £3.14m.

So Deltic (Shareholders) paid - £12.8million

Shell (Shareholders) paid - £3.14 milliion (With tax Relief)

As Noel says small beer for Shell and purchased the 70% for very little. All Tax deductable for these large

O&G companies.

Deltic cannot offset the cost.

...that went into the Pensacola drill, why did they not drill at the potential development well spot and side track to assess its operational potential.

Re RNS 8 Feb 2023

“As planned, the well penetrated the edge of the Pensacola structure in a down dip location and has proven a substantial hydrocarbon column.

Post acidization, the well flowed gas at peak rates of c. 4.75 mmscf/day declining to 1.75mmscf/day after the 12 hours of the test. These results are in-line with Deltic's pre-test expectations based on the reservoir parameters derived from the well. Being located down dip, the flow rates observed during the well test are not expected to be representative of flow rates of potential future production wells which would likely target the central part of the Pensacola structure and are expected to generate higher rates.”

I believe it will take a further appraisal well and a production well with the associated costs before this generates any income or Deltic’s percentage holding will be sold off at a reduced price.

This has been walked down despite good buys today over limited sells.

Very interesting and worrying link, thanks. Leeds has become vertually a no-go zone for cars with empty cycle lanes everwhere. A green labour agenda with no public consultation. That said all main parties seem intent on rapid green destructive policies with oil and gas heading their list. The posposed removal / limit of the windfall tax being the latest nonsense. Why invest in the oil gas industry if profits are to be limited to this extent where is the risk / reward. It has become risk only in the uk.

Tories current policy on North sea oil and gas is to tax it to death. Labour is to tax it more and kill it off

with no new north sea oil and gas projects. What is considered sensible energy security policy is being suppressed by the political green agenda.

Selene is going to cost money and who cares if they discover oil nobody going to develop it and Pensacola is dead in the water. The new current oil and gas licenses 2023 to be assigned ..who needs them.

https://www.energyvoice.com/oilandgas/north-sea/494713/windfall-tax-equinor-harbour-energy-bressay/

https://www.bbc.co.uk/news/uk-scotland-scotland-business-65178626
Self harming tax needs reforming.