Dottin the i’s and crossing t’s, Deltic Energy PLC on Wednesday reported results for the six months ended 30 June, a period followed by a deal to sell the company to Viaro Energy.
The North Sea oil and gas explorer also didn’t miss its opportunity to repeat its contention with the UK’s energy policy, and more specifically, the fiscal terms that have made it very difficult for smaller companies to raise funds for projects offshore UK. This was a key factor in the decision to sell Deltic, after the latest discovery in its portfolio.
Chief executive Andrew Nunn told investors that it had become clear during the reporting period that Deltic’s exploration-focused strategy, which relied upon ongoing access to capital, was no longer sustainable in the North Sea.
“The uncertainty surrounding the UK government’s policy position continues to damage the UK’s domestic E&P industry and undermine investor confidence in the sector as we continue to wait on the outcome of ongoing consultations in relation to the future of licensing on the UK continental shelf and the fiscal regime,” Nunn said.
“It was against this backdrop that the Deltic board welcomed the proposed acquisition of Deltic … [it] provides a way forward for the Selene asset, giving our licence partners and regulators some certainty around the future of that asset and the rest of the Deltic portfolio.”
He noted, meanwhile, that the Deltic team had “consistently punched above its weight and has achieved more than any other small explorer over the same period”.
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