Deltic Energy Provides Positive Update on Selene Gas Project
Why we think this is very good
The RNS provides a very positive update on the Selene Gas Project, with a significant increase in estimated Contingent Resources, improved reservoir characteristics, and attractive economics. The project is progressing well, with the joint venture partners committed to advancing it towards development and production. There are no obvious negative factors or concerns raised in the announcement.
Key Points
- Gross 2C Contingent Resources increased by 33% to 174 BCF
- Improved reservoir characteristics based on core sample analysis
- Updated economic model shows post-tax NPV10 of $83M net to Deltic at 80p/therm and $114M at 100p/therm
- Joint venture partners committed to move the project forward towards Field Development Plan and Final Investment Decision in early 2027
Summary
Deltic Energy has provided a positive update on the Selene Gas Project in the UK Southern North Sea, in which it holds a 25% non-operated interest. Key highlights include:
- Gross 2C Contingent Resources increased by 33% to 174 BCF
- Improved reservoir characteristics based on core sample analysis, leading to enhanced production potential
- Updated economic model shows post-tax NPV10 of $83M net to Deltic at 80p/therm gas price and $114M at 100p/therm
- The joint venture partners have committed to move the project forward, with a Field Development Plan and Final Investment Decision expected in early 2027.
The company notes that the project's progress and attractive economics are particularly positive within the current market context, where maximizing domestic energy resources is a priority.