Fossil Energy – Withdrawal
Deltic Energy has withdrawn from the Shell-operated license P2252 in the UK southern North Sea, containing last year’s Pensacola oil and gas discovery.
The company was unable to secure a farm-out of part of its interest or an alternative funding solution to ensure it could sustain its future commitments related to an appraisal well later this year on Pensacola.
Deltic has formally notified the joint venture (JV) partners of its decision to start transferring its equity to them. But the company still expects to be asked to honor certain expenditure related to the well that was approved by the JV prior to issuing of the withdrawal notice, although these costs may not become fully payable until first-half 2025.
Following a farm-out earlier this year to Dana Petroleum, Deltic retains its 25% interest in P2437, also operated by Shell. The JV expects to start drilling the 318-Bcf Selene prospect in the first half of July, with operations set to last about 90 days.
This is said to be analogous to Selene and therefore a better option for attracting a partner for future drilling activity in the UK’s currently uncertain fiscal and political environment.
