Friday 10 September 2021

Deltic Energy Plc, the AIM quoted natural resources investing company with a high impact, natural gas focussed exploration and appraisal portfolio in the Southern North Sea, is pleased to announce, following the recent Farm Out with Cairn Energy PLC ("Cairn") in relation to five of Deltic's gas licences in the Southern North Sea (the "Farm Out"), the acquisition of 3D seismic data over Licence P2428 and surrounding areas has commenced.

The Company has been informed by ION Geophysical ("ION") that the seismic vessel, under contract to ION, has mobilised to site with survey commencement expected on 11 September 2021. The acquisition of approximately 700km2 of 3D seismic data, which is focussed on the Plymouth Zechstein Reef Prospect, will take approximately six to seven weeks to complete with processed data due to be delivered mid-2022.

Under the terms of the Farm Out agreement, Cairn are responsible for 100% of the costs of the associated work programme (including seismic acquisition and processing) up to the point at which a well investment decision is made.

Completion of the Farm Out is conditional on the entering into of a Joint Operating Agreement and obtaining standard regulatory consents from the UK Oil & Gas Authority. Following completion of the farm out, Deltic will hold a 40% non-operated interest in Licence P2428.

Graham Swindells, Chief Executive of Deltic Energy, commented:

"To be acquiring new 3D seismic so quickly after announcing our transformational Farm Out with Cairn is another very positive development which will accelerate the development of our technical understanding of the opportunities on this licence. The survey represents another important milestone for Deltic and we are delighted to be participating in our first field operations with our new partner. The acquisition of high quality modern 3D seismic over the licence area is a key step in de-risking future exploration drilling on this licence."