North Sea-focused investing firm Deltic Vitality Plc, has accepted one of many two licenses that had been provisionally awarded by the North Sea Transition Authority (NSTA) in Tranche 3 of the UK’s thirty third Offshore Licensing Spherical.
License P2672, through which Deltic has a 100% working curiosity, is situated instantly to the west of the West Sole gasoline discipline and covers blocks 47/5e, 47/10c and 48/6c. The license additionally incorporates the Pharos and Teviot discoveries.
Deltic mentioned in a press release that its preliminary analysis, accomplished as a part of the appliance course of, resulted in an up to date understanding of the structural setting, “which means that the Pharos discovery and the Blackadder prospect are in actual fact a single Leman Sandstone construction”.
The 47/05d-6 properly, drilled by a consortium led by Dana Petroleum in 2013, focused what was initially interpreted to be a standalone prospect previously known as Pharos. Nonetheless, up to date structural mapping signifies the properly intersected the materially bigger Blackadder construction in a downdip location, Deltic said.
The corporate mentioned that the preliminary three-year Part A piece program commitments for the license are centered on the reprocessing of legacy 3D seismic knowledge to enhance reservoir imaging and refine the structural mannequin as a way to additional de-risk the Blackadder construction at nominal price.
“The Blackadder undertaking has many analogous attributes to the Selene prospect, the place the transforming of legacy datasets has unearthed a possible missed pay alternative of fabric scale,” Deltic CEO Graham Swindells mentioned.
“Blackadder’s location, in shut proximity to current infrastructure that requires new third social gathering gasoline to defer decommissioning, ought to improve its worth in a mature basin the place new licenses are prone to change into more and more scarce. Over the approaching yr we’ll progress our work on the legacy knowledge in preparation for farm-out, in anticipation of drilling an appraisal properly on Blackadder in the end,” Swindells added.
Withdrawal from License P2252
Final month, Deltic formally introduced its withdrawal from License P2252 and the Pensacola discovery.
“[D]espite an exhaustive course of, deteriorating sentiment in direction of the oil and gasoline trade on account of ongoing fiscal volatility and adverse political rhetoric within the run-up to the July election have resulted in Deltic being unable to safe a farm-out or an alternate funding answer which might enable the corporate to decide to its future commitments with respect to the Pensacola appraisal properly,” the corporate mentioned in an earlier assertion.
Deltic had till June 12 to advance discussions with potential counterparties concerning a attainable transaction.
Deltic holds a 30 % curiosity within the Pensacola discovery. The London-based firm mentioned it had a tough time securing a farm-out companion. Deltic wants to satisfy its 30 % share of the Pensacola properly, estimated at $19.14 million (GBP 15 million) internet to the corporate. Shell UK is the operator of License P2252.
Deltic mentioned it had “rigorously examined all kinds of funding options which included potential trade companions, together with our current Joint Enterprise (JV) companions, by way of conventional farm-out or asset sale, the fairness capital markets (each conventional and non-traditional sources of capital), strategic traders, debt suppliers and commodity buying and selling homes which might pre-pay for future gasoline deliveries”.
To contact the creator, electronic mail rocky.teodoro@rigzone.com
What do you suppose? We’d love to listen to from you, be a part of the dialog on the
Rigzone Vitality Community.
The Rigzone Vitality Community is a brand new social expertise created for you and all vitality professionals to Communicate Up about our trade, share data, join with friends and trade insiders and have interaction in knowledgeable group that can empower your profession in vitality.