Deltic Energy PLC - London-based natural resources investor focused on assets in the southern North Sea - Says it is yet to secure a farm-out partner for the Pensacola asset, as it grapples with a ‘hostile political environment’. Explains the UK energy profits levy, ‘resultant fiscal uncertainty created by the current government’ and unfavourable ‘rhetoric’ from the opposition Labour Party has hurt North Sea investment. ‘This has resulted in many operators diverting capital away from the [UK Continental Shelf] or delaying investment decisions, especially with respect to new large-scale opportunities like Pensacola.’ Adds: ‘although there are a number of live discussions with respect to a way forward on Pensacola, there is a risk that a farm-out may not be secured before the end of May 2024.’ It also warns that tough market conditions mean ‘accessing traditional equity capital’ is not a viable option for the company to fund its share of the Pensacola well costs. It warns of a possible withdrawal from Pensacola if a funding solution is not in place by the end of next month. The firm holds a 30% interest in Pensacola. Says Pensacola remains on track to be drilled in the final quarter of 2024.
Current stock price: 20.88 pence, down 46%
12-month change: down 41%
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