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    Deltic completes North Sea farm-out to Cairn

Summary

A 3D seismic survey at one of the licences has just begun.

by: Joseph Murphy

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Deltic completes North Sea farm-out to Cairn

 London-listed Deltic Energy announced on November 8 it had completed the farm-out of shares in five of its gas licences in the south North Sea to Cairn Energy.

Under the deal, first announced in August, Cairn has received 60% interests in licences P2428 and P2567, and 70% positions in licence P2560, P2561 and P2562. It has paid Deltic $1mn to cover historic back costs, and will also fund 100% of future work at the licences up to the point where a drill or drop decision is made.

If drill decisions are taken at licences P2428 and P2567, Cairn will fund 70% of the cost of whichever well is drilled first, up to a gross cost of $25mn. The company is now operator of all five licences.

Work on a 700-km2 3D seismic survey at licence P2428 has just begun, Deltic said. The survey, undertaken by ION Geophysical, is focused on the Plymouth Zechstein Reef prospect. It is due to be completed before the end of November, and the data should be delivered in the second quarter of 2022.