Deltic Energy Plc highlights significant progress as gas-focussed exploration

() highlighted significant progress with its natural gas-focused exploration strategy, as it released results for 2020.

The company’s prospects were boosted recently with confirmation in March that Shell had ‘greenlit’ plans for the Pensacola exploration well which is slated to be drill next year.

“Over the last year, we have continued to make significant progress in advancing our existing licence portfolio and both materially expanding and diversifying the overall asset base of the company,” said Graham Swindells, Deltic chief executive.

“We have continued to work closely with our partner Shell on our two most advanced projects resulting in the recent firm well investment decision on the Pensacola Prospect while continuing to move closer to a well investment decision on Selene.”

Swindells added: “The company continues to execute its natural gas focussed exploration strategy, strengthening its strategic position in the Southern North Sea following another successful outcome in the UK’s latest licensing round which doubled the number of licences the company holds.”

“With our attractive portfolio of gas-focussed prospects located close to existing infrastructure, coupled with an improved outlook in the form of commodity prices and increased levels of activity, we are in a strong position to deliver growth.

“We look forward to further progressing our prospects towards drilling and continuing to develop our partnership with Shell as we move closer to drilling our first well at Pensacola.”

In terms of financial results, the pre-revenue company reported a £1.66mln loss for the twelve months ended December 31 2020.

The company ended the year with a healthy position with £11.96mln of cash.