UK-based oil and gas firm Deltic Energy has informed that a 3D seismic survey is set to start started at its Licence P2428 and surrounding areas in the UK Southern North Sea.
Deltic last month said that Cairn had agreed to acquire a 60% interest in each of Deltic's Licences P2428 (Cupertino Area) and P2567 (Cadence) and a 70% interest in each of Licences P2560, P2561, and P2562 which are located between the Breagh and Tolmount Gas Fields.
As part of the deal, Cairn agreed to fund 100% of an agreed work program for each of the five licenses up to the point of making a drill or drop decision on each licence, which will include the shooting of new seismic data over Licence P2428, and to pay $1 million to Deltic for historic back costs incurred by Deltic across the licence areas.
Deltic said Friday that seismic data firm ION Geophysical had informed it that a seismic vessel, under contract to ION, had mobilized to the site with the survey start-up expected on September 11, 2021.
The acquisition of approximately 700km2 of 3D seismic data, which is focussed on the Plymouth Zechstein Reef Prospect, will take approximately six to seven weeks to complete with processed data due to be delivered mid-2022.
Deltic said that completion of the farm-out with Cairn was dependent on entering into of a Joint Operating Agreement and obtaining standard regulatory consents from the UK Oil & Gas Authority. Following completion of the farm-out, Deltic will hold a 40% non-operated interest in Licence P2428.
Graham Swindells, Chief Executive of Deltic Energy, commented: "To be acquiring new 3D seismic so quickly after announcing our transformational farm-out with Cairn is another very positive development which will accelerate the development of our technical understanding of the opportunities on this licence.
"The survey represents another important milestone for Deltic and we are delighted to be participating in our first field operations with our new partner. The acquisition of high quality modern 3D seismic over the licence area is a key step in de-risking future exploration drilling on this licence."
If a drilling decision is eventually made on either of P2428 and P2567 blocks, which contain the most advanced prospects, Cairn will cover 70% of the expenses of whichever well is drilled first, subject to a gross well ceiling of USD$25 million.