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Member News07th Feb 2024

Deltic farms out Selene stake to Dana Petroleum

Deltic Energy has agreed to farm out to Dana Petroleum a 25% interest in Licence P2437 in the gas-rich southern UK North Sea gas basin, containing the Selene prospect, it said in a February 7 stock-exchange announcement.

This leaves Deltic with a 25% interest in Licence P2437 of which Shell is the operator and other shareholder. Deltic will have no exposure to 2024 drilling and testing costs based on Shell’s estimates of success case well costs.

Dana will pay Deltic $500,000 in cash on completion, covering Deltic’s costs to date; and it will carry Deltic for its residual cost exposure to the Selene well. Dana will pay its 25% share of costs from January 1, 2024. Shell expects to drill the well, in a region close to the depleted giant West Sole and Ravenspurn gas fields, in Q3 2024. The same rig, Valaris 123, will also drill Shell’s Pensacola well, another Deltic farm-in.

Completion of the farm-out is conditional on obtaining consent from Shell and standard regulatory consents from the North Sea Transition Authority.