Deltic Energy has completed its farm-out deal with Dana Petroleum for a 25% stake in the Selene project.

Deltic will retain a 25% share in the Southern North Sea project, while Shell also controls 50%.

The deal will result in no exposure to 2024 drilling and testing costs up to a cost cap of $49m (£38.98m) for Dana.

Following the announcement of the rig contract for the Valaris 123 on 5 February 2024, the Selene well remains on track, with operations expected to commence in July 2024.

Graham Swindells, Chief Executive of Deltic Energy, said: "We are delighted to announce completion of the farm-out of Licence P2437 and formally welcome Dana to the joint venture.

"Well planning remains on schedule and we are looking forward to commencing Selene well operations with Shell and Dana in the summer.

"Our attention is now firmly focussed on drawing the Pensacola farm-out process to a successful conclusion and we look forward to updating the market in due course."

FTSE 100

The UK's flagship share index, the FTSE 100, was down 27-points, at 7,907, shortly after opening this morning.

Brent crude oil futures was up 0.25% today, trading at $89.14 a barrel.

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