Deltic Energy has announced completion of the farm-out agreement of five of its gas licences in the Southern North Sea with Cairn Energy through Cairn's wholly-owned subsidiary, Nautical Petroleum Limited.
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.
Under the terms of the agreement:
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 700 km2 of seismic data, which is focussed on the Plymouth Zechstein Reef Prospect and will de-risk future drilling. The survey is expected to be completed before the end of November with processed data due to be delivered in 2Q2.
Graham Swindells, Chief Executive of Deltic Energy, commented: "Completion of this transformational multi-licence farm out marks the formal commencement of our partnership with Cairn which will see significant investment being made in Deltic's strategic Southern North Sea gas exploration portfolio. Ahead of completion of the transaction we have already begun working with Cairn to progress activities on the licences. I am particularly pleased that the new 3D seismic survey has commenced so quickly after announcement of the farm out, demonstrating a shared commitment to immediately accelerate the development of these licences and hence timeline to potential drilling.
We look forward to building our partnership with Cairn, as we continue to develop our conveyor belt of Southern North Sea gas prospects towards drilling."
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