• North Sea-focused explorer
  • Partnered with Shell of two high impact wells
  • Cash holdings of £13mln

What it does

Deltic Energy PLC (LON;DELT) is a small-cap explorer focussed on the North Sea, where it is targeting gas resources in the vicinity of existing infrastructure. 

The company has a partnership with one of the largest oil and gas companies in the world, and, this partner, Royal Dutch Shell, is committed to drill at least two high impact wells in the coming years.

Success in either well will be an instant game-changer for Deltic.

In the meantime, other catalysts are anticipated and management is aiming to close the value gap (c£13mln cash in the bank).

How it’s doing

Cluff’s rebrand to Deltic Energy plc was approved at its latest AGM.

It is being led by is essentially a reboot and rebrand of Cluff Natural Resources with Graham Swindells, continuing leading the company progress to elevate a company-building strategy following the 2019 retirement of natural resources veteran Algy Cluff.

In partnership with Royal Dutch Shell Plc (LON:RDSB) the company is advancing the Pensacola and Selene prospects, which are slated for drilling in 2021 and 2022 respectively.

The company is, meanwhile, shoring up its exploration portfolio with a separate farm-out process for the Dewar prospect, along with the Cupertino and Cortez prospects which are still being advancing technically and could potentially be brought into the upcoming farm-out.

What the boss says: Graham Swindells, chief executive

“One of the key challenges is the relative value that is attributed to the company,”

“We’ve got the best part of £13mln of cash and we’re trading at a fairly significant discount to both cash and the best part of an 80% discount to net asset value.”

Video

Inflexion points

  • Drilling gets underway on Shell-funded wells
  • Rebuffs takeover approach from Reabold Resources
  • Potential for additional licences from next licensing rounds