Deltic Energy has completed the farm-out of a 25% stake in the Selene prospect in Licence P2437, to Dana Petroleum, it said in an April 3 stock-exchange announcement. Following receipt of the required regulatory and partner consents for the transaction, announced February 7, it now has a 25% stake in the UK southern basin gas prospect. Shell has the rest and is the operator. This leaves Deltic with no exposure to 2024 drilling and testing costs up to $49mn (gross). This is more than the operator estimates will be needed for a successful well, the company said. The Valaris 123 rig has already been contracted and work is due to start in July.
CEO Graham Swindells said Deltic was delighted to welcome Dana to the joint venture and he looked forward to updating the market on the farm-out of a stake in Pensacola, another southern basin gas field.
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