Deltic Energy plc (DELT.L) has announced highly significant upgrades to its 2C contingent resource base and net after tax NPV10 for the 25% owned Selene project in the SNS (Southern North Sea). The former rises by 33% to 174 bcf gross (44 bcf net) and the latter by 45% to $83m net. We believe the attractiveness of an already commercially attractive project has been meaningfully enhanced. Importantly, this should greatly assist in securing funding ahead of the FID (final investment decision) in early 2027. We note Deltic’s undervaluation reflecting the sizeable discount of the market capitalisation of £4.65m ($6.05m) to the Selene NPV. Significantly, Selene is also a short payback project at under two years and has a relatively short lead time to first production in 2029.
