Business
Completion of Farm Out of SNS Gas Licences
Completion of Farm Out of SNS Gas Licences.
About this update from Deltic Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5662R\n Deltic Energy PLC\n 08 November 2021\n \n \n \n \n \n \n \n 8 November 2021\n \n \n \n \n \n Deltic Energy Plc / Index: AIM / Epic: DELT / Sector: Natural Resources\n \n \n \n \n \n Deltic Energy Plc (\"Deltic\" or 'the Company')\n \n \n \n \n \n Completion of Farm Out of Southern North Sea Gas Licences to Cairn Energy PLC\n \n \n \n \n \n Deltic Energy Plc, the AIM quoted natural resources investing company\n with a\n high impact, natural gas focussed exploration and appraisal portfolio in the Southern North Sea, is pleased to announce completion of the farm-out agreement (the \"Farm Out Agreement\" or the \"Farm Out\") of five of its gas licences in the Southern North Sea with Cairn Energy PLC (\"Cairn\") through Cairn's wholly owned subsidiary, Nautical Petroleum Limited. \n \n \n Following announcement of the Farm Out Agreement on 12 August 2021, Deltic and Cairn have received the necessary regulatory approvals from the Oil & Gas Authority and have entered into joint operating agreements for each of the five licences.\n \n \n Under the terms of the Farm Out Agreement:\n \n \n \n · Cairn has paid Deltic consideration of USD$1 million by way of contribution towards historic back costs.\n \n \n \n · Cairn now holds a 60% interest in each of 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. \n \n \n \n · Deltic therefore now has a 40% interest in licences P2428 and P2567 and a 30% interest in licences P2560, P2561 and P2562.\n \n \n \n · Cairn is funding 100% of an agreed work programme for each of the five licences up to the point of making a drill or drop decision on each licence. \n \n \n \n · Following a drilling decision being made on either of P2428 and P2567, Cairn will fund 70% of the costs of whichever well is drilled first, subject to a gross well cost cap of USD$25 million. \n \n \n \n · Cairn will now become Operator of each of the five licences.\n \n \n \n Since announcement of the Farm Out, the shooting of 3D seismic data over Licence P2428 and surrounding areas, a key component of the work programme, has commenced. ION Geophysical are currently in the process of acquiring approximately 700km2 of seismic dat...