Independent producer Deltic Energy has withdrawn from the UK southern basin licence P2252 that contains the 326mn barrels Pensacola oil and gas prospect, it said June 11 in a stock-exchange announcement.
It had failed to find a farm-in partner and cited the “deteriorating sentiment towards the oil and gas industry as a result of ongoing fiscal volatility and negative political rhetoric in the run-up to the July election.”
Deltic said it had “rigorously examined a wide variety of funding solutions” which included strategic investors, debt providers and commodity trading houses. It will now transfer its stake to its joint-venture partners Shell (operator, 65%) and ONE-Dyas (5%), in line with the joint operating agreement.
It said it may still have to cover some of the appraisal well costs which were approved by the JV before Deltic issued the withdrawal notice.
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