Deltic Energy PLC P2437 Update -- Enhanced Prospectivity at Selene (7096V)
August 11 2020 - 2:00AM
UK Regulatory
TIDMDELT
RNS Number : 7096V
Deltic Energy PLC
11 August 2020
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the
publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
11 August 2020
Deltic Energy Plc / Index: AIM / Epic: DELT / Sector: Natural
Resources
Deltic Energy Plc
('Deltic' or 'the Company')
P2437 Update - Enhanced Prospectivity at Selene
Deltic Energy Plc, the AIM-quoted natural resources investing
company focused on high impact exploration and appraisal in the
Southern and Central North Sea, is pleased to announce a material
increase in the estimated volume of gas compared to previous
estimates as well as a significant increase in the chance of
success in relation to the Selene prospect.
This process has comprised a considerable amount of work in
relation to the existing reprocessed 3D seismic and utilised an
innovative technological approach to depth conversion which was
undertaken by a joint Deltic-Shell team. Further work on the
depositional environment, structural history, gas charge timing and
reservoir quality prediction was also completed as part of this
process.
Results from this technical analysis indicate that the Gas
Initially In Place (GIIP) volumes associated with the preferred
Selene interpretation have been significantly increased and further
potential upside has also been recognised in the in-place resource
calculations while at the same time the geological chance of
success (GCoS) has also been significantly improved.
Revised GIIP volumes and prospective GCoS figures are provided
below:
Gas Initially In Place (BCF, Gross)(1)
P90 P50 P10 GCoS
2019 estimate 255 437 683 39%
August 2020 estimate 286 629 1,021
70%
Percentage Increase 12% 44% 49% 79%
(1) The Company has a 50% interest in License P2437 and is also
its operator.
Further work will focus on potential development scenarios,
estimation of recovery factors and project economics which are
required to support the well investment decision prior to the
proposed 2022 drilling activity.
Graham Swindells, CEO of Deltic, commented:
"We are delighted at the ongoing collaboration with Shell on the
Selene licence and that the detailed work being undertaken by the
joint Deltic-Shell technical teams is supporting and enhancing the
earlier work completed by Deltic. The significantly increased gas
volumes and decreased risk profile further cements the importance
of Selene as one of the largest undrilled Leman Sandstone
structures in this mature play. We are encouraged by the level of
technical and human resources being deployed on this project by
Shell and will continue to work with them towards securing a firm
drilling commitment for the proposed 2022 well on Selene."
Qualified Person
Andrew Nunn, a Chartered Geologist and Chief Operating Officer
of Deltic, is a "Qualified Person" in accordance with the Guidance
Note for Mining, Oil and Gas Companies, June 2009, of the London
Stock Exchange. Andrew has reviewed and approved the information
contained within this announcement.
Glossary of Technical Terms
BCF: Billion Cubic Feet
GIIP: Gas Initially In Place
Chance of Success (GCoS): Geological Chance of Success
P90: a 90% probability that a stated volume will be equalled or
exceeded
P50: a 50% probability that a stated volume will be equalled or
exceeded
P10: a 10% probability that a stated volume will be equalled or
exceeded
**ENDS**
For further information please contact the following:
Deltic Energy Plc Tel: +44 (0) 20 7887
2630
Graham Swindells / Andrew Nunn / Sarah McLeod
Allenby Capital Limited Tel: +44 (0) 20 3328
(Nominated Adviser and Broker) 5656
David Hart / Alex Brearley / Asha Chotai
(Corporate Finance)
Vigo Communications Tel: +44 (0) 20 7390
(PR Adviser) 0230
Patrick d'Ancona / Chris McMahon / Simon
Woods
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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