Deltic Energy’s shares experienced a significant surge after the company announced that its oil and gas resource estimate for the Pensacola discovery in the North Sea has nearly doubled initial expectations.
Strong Market Performance
As of 0745 GMT, Deltic Energy’s shares were up by 26%, or 6.00 pence, reaching 29.00 pence.
Exceeding Initial Expectations
Deltic Energy, an oil and gas company, has revised its estimates and now believes that the Pensacola site holds approximately 342 million oil-equivalent barrels of in-place gas and oil volumes. Moreover, an estimated 99 million oil-equivalent barrels are deemed recoverable from the project, a significant increase from the initial estimate of 50 million barrels. These figures have a P50 value, indicating a 50% likelihood that the actual quantity recovered will meet or surpass the estimate.
Deltic Energy’s Chief Executive, Graham Swindells, expressed optimism about the future of Pensacola. He stated, “We look forward to working with our joint-venture partners to continue moving this exciting asset through the appraisal phase and onward toward development. With the significant additions to our resource base, we will also continue to pursue monetization options in line with our stated strategy.”