Deltic Energy has completed the farm-out of its 25% interest in the Shell-operated North Sea license containing the Selene Prospect to Dana Petroleum.
Deltic Energy received the required regulatory and partner consents in respect of the farm-out of a 25% interest in License P2437 to Dana Petroleum, therefore completing the farm-out deal.
This transaction, in combination with the existing Shell carry, results in Deltic retaining a 25% non-operated interest in Licence P2437 and having no exposure to 2024 drilling and testing costs up to a cost cap of $49 million (gross), which is in excess of current success case well cost estimates provided by the operator Shell.
The Selene well remains on track, Deltic Energy confirmed, with operations expected to start in July 2024 with the Valaris 123 heavy duty jack-up rig, under contract Shell signed with Valaris in February.
"We are delighted to announce completion of the farm-out of Licence P2437 and formally welcome Dana to the joint venture.
“Well planning remains on schedule and we are looking forward to commencing Selene well operations with Shell and Dana in the summer. Our attention is now firmly focused on drawing the Pensacola farm-out process to a successful conclusion and we look forward to updating the market in due course,” said Graham Swindells, Chief Executive of Deltic Energy.
