LONDON — Deltic Energy is reviewing its position in five licenses in the UK southern North Sea following partner Capricorn Energy’s decision to withdraw.
In response, Deltic has decided that the partnership will relinquish three of the licenses (P2560, P2561 and P2562).
However, the company intends to retain P2567 (Cadence) and P2428 (Cupertino) in recognition of the prospectivity identified by Capricorn during its studies on behalf of the joint venture.
Work commitments have been fulfilled for both licenses, with Deltic fully carried by Capricorn through nearly $10 million of technical programs to date including the pre-funding of nearly 700 sq km of new 3D seismic and reprocessing of various legacy 3D seismic surveys.
The analysis revealed 17 leads and prospects in the Carboniferous with combined P50 gas-initially-in-place of more than 2.6 Tcf. Many of these prospects are said to be analogous to the undeveloped Pegasus and Andromeda discoveries on the blocks immediately to the south of the licenses.
P2567 and P2428 are due to expire on Nov. 30, 2023, and March 31, 2024, respectively. Once Deltic has been reappointed as administrator, it plans to seek an extension of the current license terms from the UK’s North Sea Transition Authority.
Assuming approval, it would then continue to high grade and mature prospects while pursuing farm-outs to new partners to assist future drilling activity.