Deltic Energy plc has agreed to sell its entire share capital for £6.9 million cash to Viaro Group’s subsidiary RockRose Energy.
SELENE
Viaro will also provide Deltic with a bridging loan of up to £2.7m to cover working capital before the acquisition becomes effective.
Deltic has previously warned about “political and fiscal headwinds” hampering the UK’s oil and gas industry.
“Given the uncertain fiscal and policy environment which has persisted in recent years in the UK, it has become extremely challenging to both continue funding the Deltic business model via the equity markets or to realise significant value from exploration success,” the company said today.
In June 2024, the company withdrew from its 30% interest in the southern North Sea Pensacola discovery after being unable to find funding or a farm-in partner.
In March of this year it was still seeking a partner for its 25% non-operated interest in the Selene prospect.
The company today added that operator Shell UK Ltd had informed it of an overspend on Selene which would result in “unexpected costs” for Deltic expected to around £1.3m net to Deltic.
Viaro said that Selene had been a “key driver” for its acquisition.
As at 31 December 2024, Deltic had £1.4m cash which by 31 May 2025 had reduced to £490,000.
Viaro has received irrevocable undertakings been in respect of, in total, 17,849,240 Deltic shares, representing 19.17% Deltic’s issued ordinary share capital.
Deltic shareholders will vote at a general meeting on the sale, intended to complete via a court-sanctioned scheme.
The sale is expected to become effective during the fourth quarter of 2025.
“This transaction provides certainty for shareholders as well as our staff, regulators and joint venture partners who are progressing the Selene opportunity towards development for the benefit of the UK’s future energy needs,” said chief executive Andrew Nunn.
“We are looking forward to working with the wider Viaro team as we continue to move the Selene and Blackadder [prospect] opportunities towards production and applying our proven exploration expertise to Viaro’s existing and expanding portfolio of Southern North Sea licences.”
Viaro CEO Francesco Mazzagatti said that Deltic’s portfolio was a “natural fit” with its own existing assets and strategic focus in the North Sea.
“The transaction reflects our commitment to advancing key developments responsibly and with the continuity they require, “he added.
“By working with joint venture partners to overcome the economic challenges imposed by the current fiscal uncertainty, we aim to ensure that important developments like Selene can be successfully progressed towards production in a timely manner, and with the right level of technical and financial support.”