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Farm Out of Five Licences to Cairn Energy PLC
Farm Out of Five Licences to Cairn Energy PLC.
About this update from Deltic Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3752I\n Deltic Energy PLC\n 12 August 2021\n \n \n \n \n The information contained within this announcement is deemed by the Company to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n \n \n \n \n 12 August 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 Farm out of five Southern North Sea 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 that it has entered into a binding, conditional farm-out agreement (\"the Farm Out Agreement\") in relation to 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 Summary of Farm Out Agreement\n \n \n \n · Under the terms of the Farm out Agreement, Cairn will acquire 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 \n \n \n · Deltic will retain a 40% interest in licences P2428 and P2567 and a 30% interest in licences P2560, P2561 and P2562.\n \n \n \n \n \n \n · Cairn will fund 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, which will include the shooting of new seismic data over Licence P2428. \n \n \n \n \n \n \n · Following the Farm Out Agreement becoming unconditional, Cairn will pay Deltic an up-front consideration of USD$1 million by way of contribution towards historic back costs incurred by Deltic across the licence areas.\n \n \n \n \n \n \n · In the event that a drilling decision is made on either of P2428 and P2567, which contain the most advanced prospects, Cairn will fund 70% of the costs of...