DELTIC ENERGY PLC BUILDING UPON EXPLORATION SUCCESS MARCH 2024
Important Notice
The information contained in this document (the "Presentation") has been prepared and distributed by Deltic Energy PLC (the "Company"). It has not been fully verified and is subject to material updating, completion, revision, verification and further amendment. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000, as amended ("FSMA"). The securities mentioned herein have not been and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or under any U.S. State securities laws, and may not be offered or sold in the United States unless they are registered under the Securities Act or pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act. This Presentation is for information purposes only and does not constitute, and the Company is not making, an offer of securities.
While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.
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Board & Management
Driven and highly competent management team with >100 years of UKCS Experience
Graham Swindells
Chief Executive Officer
Graham joined Deltic as Chief Financial Officer in 2013 and became Chief Executive in 2018. He previously worked in corporate finance and M&A, specialising in advising mid and small-cap public companies. Before joining Deltic, he was a Director in Corporate Finance at Ernst & Young. Previously, he was a Director in Corporate Finance at Arbuthnot Securities where he gained significant natural resources experience acting as nominated adviser and broker. He qualified as a Chartered Accountant in Scotland working for BDO and subsequently PwC.
Andrew Nunn
Chief Operating Officer
Andrew is a Chartered Geologist with over 20 years of experience working on exploration, mining and geo-environmental projects in Europe, Australasia and Africa. For the last 10 years he has worked on a wide variety of UK and European conventional and unconventional gas projects with a primary focus on Carboniferous aged reservoirs. Andrew's previous role was as Exploration Manager for Dart Energy. He holds a B.Sc. (Hons) in Economic Geology and an M.Sc. in Environmental Management. Andrew was a Director of the Oil and Gas Independents' Association (OGIA) from February 2020 until July 2024.
Sarah McLeod
Chief Financial Officer
Sarah joined Deltic as Chief Financial Officer in January 2020. Sarah has 20 years of experience in the international oil and gas industry. She previously held the position of Group Financial Controller at New Age. Sarah spent 10 years with ConocoPhillips in a variety of senior financial and strategic roles and also two years with Maersk Oil. She started her career with Deloitte, spending six years in its oil and gas team during which time she qualified as a Chartered Accountant.
Mark Lappin
Non-Executive Chairman
Mark has over 35 years of experience in the oil and gas industry. Mark's recent roles include Technical Director at Cuadrilla and prior to that Sub- Surface Director for UK and Netherlands at Centrica. Mark began his career as a Geophysicist at Phillips Petroleum and has held senior technical and commercial roles with Phillips, Exxon Mobil and Dart Energy. Mark's North Sea focussed operational, commercial and super-major E&P experience will be hugely valuable as the company moves into the next stage of its development. Mark is a Visiting Professor at University of Strathclyde Centre for Energy Policy.
Peter Cowley
Non-Executive Director
Peter Cowley is a geologist with 50 years of international experience in the minerals industry and has been involved in the discovery and development of a number of gold mines in Africa. Peter was previously Managing Director of Ashanti Exploration Limited, Group Technical Director of Cluff Resources Plc, CEO of Banro Corporation and is currently President and a Director of Loncor Gold Inc. He holds M.Sc. and M.B.A. degrees and is a Fellow of Institute of Materials, Minerals and Mining.
Peter Nicol
Non-Executive Director
Peter has 40 years of experience in the energy sector. He was previously Head of Oil & Gas at GMP Securities Europe, Global Sector Director of Oil
- Gas Research at ABN Amro & Head of European Oil & Gas Research at Goldman Sachs. Peter is a non-executive director of exploration focussed Touchstone Exploration Inc. & Eco (Atlantic) Oil & Gas Ltd, both of which are AIM quoted. He is also an independent director of ERC Equipoise Limited. Peter started his career with British National Oil Corporation & holds a Bachelor of Science in Mathematics & Economics
from Strathclyde University
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Corporate Structure and Major Shareholders
AIM:DELT
CAPITAL STRUCTURE
Share Price1 | 32 p |
Shares in Issue | 93m |
Options | 11m |
Free Float | 80.8% |
Cash2 | £6.1m |
Debt | NIL |
Market Capitalisation1 | £30m |
- as at 10th March 2024
- as at 30 November 2023 (unaudited)
MAJOR SHAREHOLDERS3 | % |
IPGL (Michael Spencer) | 18.8 |
Interactive Investor | 10.6 |
Hargreaves Lansdown | 10.3 |
Inthallo (Richard Sneller) | 9.7 |
Canaccord | 5.4 |
Janus Henderson | 5.2 |
Holders of <3% | 40.0 |
3 as at 29th February 2024
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Delivering Our UK Exploration Strategy
High impact SNS Gas Exploration
Major discovery with first well at Pensacola in January 2023 Pensacola appraisal well scheduled for Q4 2024 Exploration well on Selene gas prospect planned for Q3 2024
Exploration Success is Route to Growth
Focus on value enhancement through the drill bit
Leverage significant equity to reduce future capital exposure Retain exposure to future production revenues
Use revenues to reduce cycle times on new opportunities
SYROS PROSPECT
24.5 mmbls (Gross P50 Prospective Resources)
100% Deltic
Farm-out Process Active
PENSACOLA DISCOVERY
326 mmboe (Gross P50 HIIP)
15-21.8mmboe (Net 2C Resources)
Shell UK Operated
Appraisal Well Q4 2024
Build Strong Partnerships | Teesside |
Non-operated model requires quality operators like Shell
Allows Deltic to leverage the capabilities of major E&P companies Independent resource certification provides validation Technical partnerships keep overheads down
Easington
Securing the future of domestic gas production in the UK
Natural gas is a key part of the energy mix during the transition to Net Zero Domestic production is less carbon intensive and key for UK energy security UK production provides UK jobs and tax revenue
SELENE PROSPECT
318 BCF (Gross Prospective Resources)
Shell UK Operated
Exploration Well Q3 2024
Bacton
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Core Asset Overview
Material Resource Base Focussed on Southern North Sea
PENSACOLA DISCOVERY | Net Contingent | Post-Tax | |||||
Licence P2252 | Resources | 2C NPV10 | |||||
(mmboe) | Net to Deltic | ||||||
Working | Operator | Formation | Development | 1C | 2C | 3C | USD$M |
Interest | Scenario | ||||||
Zechstein | Gas Only | 5.7 | 15 | 32 | 199 | ||
30% | Shell UK | ||||||
Hauptdolomit | Combined | 7.2 | 21.8 | 46.5 | 205 | ||
SELENE PROSPECT | Gross Prospective | GCoS | |||||
Licence P2437 | Resources (BCF) | ||||||
Working | Operator | Formation | HC Type | 1C | 2C | 3C | % |
Interest | |||||||
25%1 | Shell UK | Leman Sst | Gas | 132 | 318 | 581 | 70 |
SYROS PROSPECT (CNS) | Gross Prospective | GCoS | |||||
Licence P2452 | Resources (MMboe) | ||||||
Working | Operator | Formation | HC Type | 1C | 2C | 3C | % |
Interest | |||||||
100% | Deltic | Fulmar Sst | Oil | 13.7 | 24.5 | 39.7 | 58 |
1 subject to completion of farm-out to Dana Petroleum
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Commitment to ESG
Health & Safety. Environment. Net Social Benefit.
Governance
Governance aligned with QCA guidelines
Board supported H&S, Environment & ESG policies Climate related disclosures in Annual Report since 2021
Health and Safety
Health and safety of staff, public and other stakeholders is a
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> STRONG INDEPENDENT DIRECTORS
- FULLY SUPPORTIVE OF ESG GOALS
- ESG ASSESSED AT STRATEGIC AND TRANSACTIONAL LEVELS
key business priority
Key RIDDOR stats published in Annual Report since 2021
Environment
Certified Carbon Neutral Business in 2024
UK natural gas focussed portfolio
UK gas consumption >> UK gas production
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T N E M
> GAS FOCUSSED STRATEGY
- KEY TRANSITION FUEL
- NET ZERO ALIGNMENT
- LOCAL IS BETTER
UK produced gas has lower CO2 intensity than imported LNG
Focus on Net Social Benefit
Gas is part of the energy mix for the foreseeable future Also petrochemicals, domestic heating and hydrogen Maximise benefits and mitigate drawbacks of natural gas UK production = UK jobs, tax revenues & security of supply
> UK JOBS AND SKILLS
- UK TAX REVENUES
- SOCIAL BENEFIT vs IMPACT
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LICENCE P2252 PENSACOLA DISCOVERY
APPRAISAL WELL PLANNED FOR Q4 2024
Pensacola Discovery (30% Deltic)
Competent Persons Report completed by RPS Energy (Jan 2024)
41/10-1 | 41/05a |
Confirms significant oil and gas discovery with gross P50 HIIP of 326 MMboe |
Maiden Contingent Resources estimates based on two potential development scenarios Positive commercial evaluation supports future development
Potential for Pensacola to become key hub in developing wider Zechstein play
41/05a-2 |
N-S Seismic Line Showing Facies and Hydrocarbon Type Distribution | Top Hauptdolomit Depth Structure mTVDSS Map |
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Pensacola Discovery
Gas Only Development Scenario
Independently (RPS) certified contingent resources assessment and valuation
2C Resources of 15 MMboe and post-tax NPV10 of USD$199M net to Deltic
3 well development with normally unmanned installation
Gas export via new pipeline to Teesside
CO2 removal onshore and re-injected
RPS Q4 2023 forward commodity price assumptions
CONTINGENT RESOURCES
Deltic Net Working | ||||
Hydrocarbon Type | Units | Interest1 | ||
1C | 2C | 3C | ||
Gas | Bscf | 34 | 89 | 190 |
Condensate | MMstb | 0.1 | 0.2 | 0.4 |
Oil Equivalent | MMboe2 | 5.7 | 15.0 | 32.0 |
1Deltic holds a 30% working interest in P2252
2Conversion rate of 6,000 scf per boe
ECONOMIC EVALUATION
Gas Only | ELT1 | Post-Tax NPV - Net to Deltic2 | |||
Case | Date | USD$ Million | |||
Discount Rate | 0% | 10% | 12% | 15% | |
2C | 2044 | 599 | 199 | 158 | 111 |
- Economic Limit Test
- Deltic holds a 30% working interest in P2252
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Disclaimer
Deltic Energy plc published this content on 13 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 March 2024 16:03:03 UTC.
