Deltic Energy PLC (AIM:DELT) CEO Graham Swindells speaks to Thomas Warner from Proactive London after the London-based oil and gas exploration business announced the findings of a competent person's report in relation to the Pensacola Discovery on Licence P2252 in the Southern North Sea in which Deltic holds a 30% interest.
The report details contingent resources significantly exceeding pre-drill estimates. The Pensacola assets are valued at over $205mln in post-tax Net Present Value (NPV), with oil and gas volumes surpassing 300mln barrels, a figure that strongly validates Deltic's technical assessments.
Swindells emphasises the substantial upside potential for the company, noting that the valuation is several times their current share price. Recent results from the Crosgan Well, similar to Pensacola and operated by Shell, further boost confidence with encouraging reservoir qualities and substantial gas flow rates.
Additionally, Deltic Energy is actively progressing in its farm out processes for both Pensacola and Selene, engaging with potential partners to create and realise value while mitigating future drilling expenses.
Swindells anticipates a busy and transformative year ahead, with back-to-back drilling programs for Pensacola and Selene scheduled, and eagerly awaits the results of the 33rd UK licensing round.
