Deltic Energy Plc provided the following operational update in relation to its portfolio of UK gas development and exploration assets: Post-well analysis and pre-Field Development Planning work on Selene Gas Project underway; Selene gas project NPV10 of USD 58 million, net to Deltic, based on updated economic model; Selene project - Endymion prospect maturation demonstrates low-cost upside on block; Farm-out process on Blackadder licence commenced Selene Gas Project - Licence P2437. Deltic has a 25% non-operated interest in the Selene gas discovery in the Southern North Sea ("SNS"). Following the successful drilling of the discovery well in 2024, the Joint Venture ("JV") partners unanimously supported the move into the second term of the licence and committed to the various engineering, commercial and regulatory workflows required to support a Field Development Plan ("FDP") and a future Final Investment Decision ("FID") in early 2027.
This work has initially focused on the analysis of data and samples collected from the 2024 well and integration of this information into the various subsurface and reservoir models. Should the JV decide to proceed with this work, which would run in parallel to other workflows, it would result in reprocessed data being available towards the first quarter of 2026. Deltic has revised its internal economic model for an indicative two well development of the Selene discovery, with gas export via the existing Barque production infrastructure, which incorporates updated cost and time estimates for the development recently provided by the Operator and Deltic's internal modelling, as follows: Based on data acquired during the drilling of the Selene exploration well in 2024, Deltic has also reviewed the prospectivity associated with the Endymion structure located on the north-eastern corner of the P2437 licence area.
Endymion is a structural extension of the depleted Mimas gas field and, following recent model updates completed after the Selene well drilling, Deltic estimates that the Endymion prospect contains P50 Prospective Resources of 70 BCF (with a P90-P10 Range of 45 to 106 BCF) with a geological chance of success ("GCoS") of >75%. It is envisaged that the Endymion structure would be developed via a single subsea tie-back to the proposed Selene development infrastructure. Any additional gas produced from Endymion could further materially enhance the overall Selene licence project economics and could maximise the use of the proposed Selene infrastructure for a number of additional years.
It is expected that any drilling on Endymion would only occur after FID on the core Selene development had been secured. Deltic is currently evaluating a number of options, both at the corporate and asset level, which should allow it to secure the funding required to meet its medium-term requirements in relation to the Selene development. The Dewar licence remains in 'care and maintenance' mode and, other than nominal licence rental and NSTA levy fees, the Company expects to incur no further costs on this licence during 2025.
The subsurface opportunity is well understood, given legacy work completed by Deltic, and while the prospect is robust there are significant challenges in terms of access to export infrastructure. The Company's intention is to review potential development and export options for this low-risk exploration prospect again in 2026, before looking to introduce a partner to help take a partner to help take the future future workflows.
