NEO NEXT+ agrees cash takeover of Deltic Energy
NEO NEXT+ has reached an accord with the board of UK independent Deltic Energy on a cash acquisition of the company.
The deal values the entire issued and to‑be‑issued share capital of Deltic at about £7.2 million ($9.8 million).
NEO NEXT+ Group says it is now the largest oil and gas producer in the UK North Sea following the combination of Repsol Resources UK and TotalEnergies’ UK business. The group has also expanded its portfolio through acquisitions from Gran Tierra North Sea and Sojitz Energy Development, along with a 32% interest in the Culzean gas‑condensate field in the central UK North Sea.
Deltic has focused on identifying and advancing new or bypassed exploration opportunities in UK waters, particularly in the Southern Gas Basin. The company typically applied for North Sea licenses with a 100% working interest, with the intention of bringing in partners to fund seismic acquisition and exploration drilling.
Farm‑out agreements with Shell, Capricorn Energy and Dana Petroleum resulted in 3D seismic surveys and two exploration wells, leading to the Pensacola and Selene gas discoveries.
In recent years, however, Deltic has faced challenges securing equity-market funding to cover its share of exploration programs, amid a more challenging UK fiscal and licensing environment. The UK government has pledged to end exploration licensing and prevent drilling for new offshore oil and gas fields.
NEO NEXT+ said the 25% non‑operated stake it would acquire in the Selene discovery represents a material asset with long‑term cash‑flow potential. Further investment will be required for additional studies and development capital expenditure ahead of first gas, which is currently targeted for early 2031.
About the Author
Jeremy Beckman
Editor, Europe
Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.