Deltic Energy plc continues to hold a strong balance sheet after a “transformational” first half year from the major hydrocarbon discovery in the Pensacola licence.
FINANCES
Results for the the six months of 2023 show that the company began the year with £20.4 million cash and ended the period with £9.1m following planned investment of £10m (2022: £2.1m) to complete drilling Pensacola.
Losses rose to £1.2m (H1 2022: loss of £1m) and administrative expenses increased to £1.4m (H1 2022: £1m).
Deltic held total capital and reserves of £23.2m (2022: £24.2m).
The value of exploration assets increased to £16.3m (2022: £9.8m), mainly reflecting completion of drilling Pensacola in February 2023.
H1 2023 work on Pensacola was £6.3m with the total net cost to Deltic of drilling the Pensacola well of £12.8m.
The company spent £200,000 progressing exploration licences particularly Syros and Selene, with the latter’s pre-drill costs expected during H2 2023.
All costs associated with the five licences held jointly with Capricorn Energy were fully paid by Capricorn.
As at 30 June 2023 Deltic still had to pay Shell, operator of the Pensacola licence, approximately £2 million in H2 2023.
Total current liabilities, which include short-term creditors, accruals, provisions and lease liabilities decreased to £2.5m (2022: £6.4m).
Deltic continues to operate with no debt.
“It is no exaggeration to say that the first half of 2023 has been transformational for Deltic, following the discovery of material quantities of hydrocarbons at Pensacola in the Southern North Sea,” said chief executive officer Graham Swindells.
“With an estimated 100 million barrels of oil equivalent, the majority of which is natural gas, this represents one of the biggest UK discoveries in over a decade, and is particularly significant considering the enormous energy security issues that the country currently faces.
“I am very proud of the entire Deltic team which has delivered this success, and I am confident that we will continue to build upon this going forward.”