Deltic Energy PLC, based in London, has decided to withdraw from three of its five North Sea gas exploration licenses, namely P2560, P2561, and P2562, as disclosed in a recent news release. These licenses were jointly held with Capricorn Energy PLC, but after Capricorn's formal decision to withdraw from them, the joint venture plans to relinquish the licenses at the earliest opportunity, according to Deltic's statement.

However, Deltic will continue to pursue its plans for the remaining two licenses, P2567 (Cadence) and P2428 (Cupertino), independently. The company acknowledges the promising potential identified through the technical work programs completed by Capricorn for these licenses. Deltic has been fully supported by Capricorn, with nearly $10 million invested in technical work to date. This work includes pre-funding for new 3D seismic data covering approximately 270.3 square miles (700 square kilometers) and reprocessing of legacy 3D seismic surveys. The joint venture has identified and matured 17 leads and prospects, suggesting over 2.6 trillion cubic feet of "combined, gross P50 gas-initially-in-place."

The current licenses for P2567 and P2428 are set to expire on November 30 and March 31 of the following year, respectively. Deltic intends to request an extension of these license terms from the North Sea Transition Authority. Upon approval, the company plans to progress with the project while seeking potential partners for future drilling activities across these two licenses.

Deltic's Chief Executive, Graham Swindells, expressed a preference for continuing the partnership with Capricorn on these exploration licenses, but due to Capricorn's recent strategic shift, it became necessary to move forward independently. Swindells emphasized the significant progress achieved with Capricorn, advancing their understanding of the area's potential and focusing on licenses showing excellent promise.

Deltic's commitment to exploring the Southern North Sea remains strong, especially after the successful gas and oil discovery at Pensacola (License P2252) in February. The discovery, where Deltic holds a 30-percent working interest and Shell holds 65 percent, has demonstrated great potential with revised estimates indicating close to double the initial estimate for recoverable oil and gas. The company targets drilling an appraisal well at Pensacola by late 2024, subject to regulatory and joint venture approvals.

Despite the challenges arising from Capricorn's decision, Deltic continues its dedication to exploring the Southern North Sea and contributing to the UK's energy security and net-zero future.