Thursday 25 November 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 that the 3D seismic survey over Licence P2428 and surrounding areas has now been completed.

Following the announcement of Deltic's farm-out agreement with Cairn Energy PLC ("Cairn") on 12 August, the Company announced the commencement of the 3D seismic survey over Licence P2428 on 10 September 2021. The seismic vessel, under contract to ION Geophysical, was mobilised to site to acquire approximately 680km2 of new 3D seismic data over the Plymouth Zechstein Reef prospect and surrounding areas on Licence P2428. Acquisition of the 3D seismic data was completed on 21 November and the vessel will now be demobilised back to its home port.

The data collected will now be processed by ION to pre-stack depth migration ('PSDM') with the final results expected to be delivered in Q2 2022.

Under the farm-out agreement, Cairn is responsible for 100% of the costs of the seismic acquisition, processing and associated work programmes up to the point at which a positive well investment decision is made.

Following the completion of the farm-out with Cairn, Deltic now holds a 40% non-operated interest in Licence P2428. The licence contains the key Plymouth prospect, a large Zechstein carbonate build-up, which is analogous to Deltic's Pensacola Prospect and the Crosgan discovery.

Further upside on the block is associated with the Cupertino and Richmond prospects which will also be further evaluated using the newly acquired 3D seismic data.

Graham Swindells, Chief Executive of Deltic Energy, commented: "Successfully completing the acquisition of this new 3D seismic data represents another important step forward as we further progress this highly prospective licence with Cairn towards future drilling. The results of this high quality modern 3D seismic survey are expected to significantly enhance our understanding of the multiple gas prospects on P2428 and will be key to de-risking future drilling on this licence."