Deltic Energy Plc · LSE:DELT
Deltic Energy — Investor Presentation (May 2024)
23 slides from Deltic Energy's investor presentation, May 2024
Slide 1: Building Upon Exploration Success
BUILDING UPON EXPLORATION SUCCESS MAY 2024
Slide 2: Important Notice
Important Notice The information contained in this document (the “Presentation”) has been prepared and distributed by Deltic Energy PLC (the “Company”). It has not been fully verified and is subject to material updating, completion, revision, verification and further amendment. This Presentation has
Slide 3: Board & Management
Board & Management Driven and highly competent management team with >100 years of UKCS Experience Graham Swindells Mark Lappin Chief Executive Officer Non-Executive Chairman Graham joined Deltic as Chief Financial Officer in 2013 and became Chief Mark has over 40 years of experience in the oil and g
Slide 4: Delivering Our UK Exploration Strategy
Delivering Our UK Exploration Strategy SYROS PROSPECT High impact SNS Gas Exploration 24.5 MMbls (Gross P50 Prospective Major discovery with first well at Pensacola in January 2023 Resources) 100% Deltic Pensacola appraisal well scheduled for Q4 2024 Farm-out Process Active Exploration well on Selen
Slide 5: Commitment to ESG Governance
Commitment to ESG Governance Governance aligned with QCA guidelines Board supported H&S, Environment & ESG policies Health & Safety. Environment. Net Social Benefit. Climate related disclosures in Annual Report since 2021 Health and Safety Health and safety of staff, public and other stakeholders is
Slide 6: Corporate Structure and Major Shareholders
Corporate Structure and Major Shareholders AIM:DELT CAPITAL STRUCTURE MAJOR SHAREHOLDERS3 % Shares in Issue 93m IPGL (Michael Spencer) 18.8 Options 11m Interactive Investor 10.9 Free Float 80.8% Hargreaves Lansdown 10.3 Cash1 £5.6m Inthallo (Richard Sneller) 9.5 Debt NIL Janus Henderson 5.2 1 as at
Slide 7: Core Asset Overview
Core Asset Overview Material Resource Base Focussed on Southern North Sea PENSACOLA DISCOVERY Net Contingent Post-Tax Licence P2252 Resources 2C NPV10 (MMboe) Net to Deltic Working Development Operator Formation 1C 2C 3C USD$M Interest Scenario Gas Only 5.7 15 32 199 Zechstein 30% Shell UK Hauptdolo
Slide 8: Valuation Analysis
Valuation Analysis Current undervaluation presents significant opportunity Target Price Unrisked NAV pence / share pence / share 600 600 500 500 400 400 pence / share pence / share 300 300 200 200 100 100 0 0 Allenby NAV Stifel Target Price Canaccord Target RPS 2C NPV10 RPS 3C NPV10 Allenby Stifel C
Slide 9: Licence P2437 Selene Prospect
LICENCE P2437 SELENE PROSPECT EXPLORATION WELL IN Q3 2024
Slide 10: Selene Prospect (25% Deltic)
Selene Prospect (25% Deltic) Endymion Shell operated exploration well commencing July 2024 Selene Barque Clipper 25% WI in Shell operated Deltic is fully carried in the Located in heart of Leman licence P2437 in the world exploration well following Sandstone fairway in close class SNS gas basin rece
Slide 11: Selene Exploration Well
Selene Exploration Well Final preparations for a July 2024 spud All site survey works complete in Q4 2023 Valaris 123 has recently been mobilised after undergoing 5 year maintenance and upgrades Well is designed to provide sufficient information to support a Field Development Plan Significant data c
Slide 12: Licence P2252 Pensacola Discovery
LICENCE P2252 PENSACOLA DISCOVERY APPRAISAL WELL PLANNED FOR Q4 2024
Slide 13: Pensacola Zechstein Discovery (30% Deltic)
Pensacola Zechstein Discovery (30% Deltic) Largest Discovery in SNS for over a Decade Pensacola Teesside 30% WI in Shell operated Major oil and gas discovery Independently assessed 2C licence P2252 in the world with gross P50 HIIP of 326 Contingent Resources of class SNS gas basin MMboe in Jan 2023
Slide 14: Pensacola CPR – Jan 2024
Pensacola CPR – Jan 2024 RPS has independently confirmed a 326 MMboe Discovery at Pensacola (mid-case) Hydrocarbons Initially in Place (Gross, Mmboe) LOW MID HIGH P50 SCENARIO GAS / OIL SPLIT % DELTIC 27 TOLMOUNT BREAGH CYGNUS WEST SOLE HEWETT P50 HIIP P50 HIIP P50 HIIP P50 HIIP P50 HIIP RPS 73 0 10
Slide 15: Pensacola CPR – Contingent Resources
Pensacola CPR – Contingent Resources Significant upside resource potential post-appraisal Contingent Resources - Combined Case 2C SCENARIO GAS ONLY DEVELOPMENT (Gross, Mmboe) GAS / OIL SPLIT% 1C 2C 3C 28 RPS 72 DELTIC P50 EUR 0 20 40 60 80 100 120 140 160 180 GAS OIL COMBINED GAS & OIL DEVELOPMENT C
Slide 16: Pensacola – CPR Valuation and FCF forecast
Pensacola – CPR Valuation and FCF forecast 2C NPV10 Valuation of c. USD$200M with significant scope for optimisation post-appraisal Annual Post-Tax Free Cashflow Analysis - Net to Deltic 300 1000 250 $792 800 200 $598 600 150 100 400 50 USD$M 200 0 2024 2029 2034 2039 2044 2049 2054 -50 0 -100 -200
Slide 17: Pensacola Appraisal
Pensacola Appraisal Shell Operated Q4 2024 Appraisal Well Site survey works completed in H1 2024 Well is designed to provide sufficient information to support a Field Development Plan Significant data collection programme planned including coring, wireline logs and a well test Focus on reservoir qua
Slide 18: Pensacola - Potential Hub Development Scenario
Pensacola - Potential Hub Development Scenario A major new low CO2 gas production hub for the Zechstein play Regionally material scale with nearly 2 TCF of recoverable gas (discovered and prospective) in the Pensacola & Crosgan discoveries and the Bonnie Brae prospect Bonnie Brae Pensacola could act
Slide 19: Licence P2542 Syros Prospect
LICENCE P2542 SYROS PROSPECT ACTIVE FARM-OUT PROCESS
Slide 20: Syros Prospect (100% Deltic)
Syros Prospect (100% Deltic) Low risk, infrastructure led exploration opportunity on Montrose-Arbroath High Syros Aberdeen 100% WI in licence P2542 Simple rotated fault block P50 Prospective Resources located adjacent to the with Fulmar Sst reservoir of 24.5 MMboe with GCoS of Montrose-Arbroath fiel
Slide 21: Further upside potential arising from 33rd Licensing Round
Further upside potential arising from 33rd Licensing Round Deltic applied for a package of assets, awards from Q1 2024 Building the opportunity set and diversifying the portfolio Deltic has a successful track record of acquiring licences organically Regular licence rounds provide low cost access to
Slide 22: Deltic is delivering on its business plan
Deltic is delivering on its business plan UK Gas focussed exploration strategy will deliver value through the drill bit Right product – gas is recognised as key transition fuel Right place – world class gas basin Right time – proposition de-risked following first discovery & further high impact cata
Slide 23: Deltic Energy contact
Deltic E First Floor 150 Water! London — SE1 8SB United Ki