Deltic Energy Plc provided the following operational and commercial update in relation to the Selene Gas Project in the UK Southern North Sea: Highlights: Deltic now estimates Gross 2C Contingent Resources of 174 BCF at Selene, a 33% increase on earlier estimates; Analysis of core samples from well 48/8b-3Z is now substantially complete; Porosity and permeability characteristics improved over previous assumptions; Reservoir modelling indicates enhanced production potential from key B-sand interval; Updated post-tax NPV10 of USD 83 million net to Deltic at 80 pence per therm gas price and USD 114 million at 100 pence per therm gas price; Selene Gas Project - Licence P2437; Deltic has a 25% non-operated interest in the Shell-operated Selene gas discovery in the Southern North Sea ("SNS"). Following the successful drilling of the well in 2024, the Joint Venture ("JV") partners unanimously voted to 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") scheduled for early 2027. Reservoir Properties: The licence Operator, Shell UK Ltd, has provided porosity and permeability measurements on 176 core plugs taken from drill core samples over the Leman B-Sand, which is the key producing interval within the much thicker Leman Sandstone package.
Reservoir Modelling Update Incorporating the new porosity and permeability data into Deltic's dynamic reservoir model has resulted in improved overall recovery factors, higher initial flow rates, extended plateau production periods and increased estimates of gas recovered over a 20-year production life. The core analysis data has allowed Deltic to refine and update its volumetric estimates for the Selene Gas Project utilising the recently delivered porosity data from the core samples and updated recovery factors from the reservoir modelling. Given the material uplift in recoverable gas volumes, the economic model for Selene has been updated from that previously announced in the Company's announcement released on 11 March 2025.
Deltic's base case development assumptions remain unchanged and incorporate a two well development with a new normally unmanned installation tied back to existing production infrastructure on the Barque field via a new c. 20km subsea pipeline. This model reflects the revised volumetrics and production profiles and has been run at a 80 pence per therm gas prices reflecting recent average National Balancing Point ('NBP') and a 100 pence per therm gas prices which more closely reflects the average NBP gas price over the last six months. Assumptions Units Value: Deltic Working Interest: 25 Gross 2C Contingent resources BCF 174 Initial Field Production Rate MMscf/day 70 Gas Price pence/therm 80 & 100 First Gas Year 2029 Cost per BOE USD 10 CAPEX & $15 OPEX Fiscal Regime.
