Proactive Oil & Gas highlights: Deltic Energy, Union Jack, Tullow Oil

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Deltic Energy PLC (AIM:DELT, FRA:7RC) chief executive Graham Swindells said he is extremely pleased with 2021 so far, as the North Sea company has seen great progress across its portfolio.


The comments, in Tuesday’s interim results statement, come as the company looks forward to the drilling of the Shell operated Pensacola exploration well and as a recently agreed joint venture with Cairn Energy is advancing exploration activities. During the first half, Shell confirmed it would drill Pensacola in the second quarter of 2022, and today Deltic noted that well planning has rapidly progressed and a site survey has begun.


“The decision to drill Pensacola and transformational deal with Cairn have been particular highlights,” Swindells said. “Both demonstrate our strategy to build a diverse portfolio of opportunities and attract high quality partners.


“We are looking forward to commencing our partnership with Cairn, as well as continuing our work with Shell as we progress towards drilling our high impact SNS gas prospects. The next twelve months are set to be an exciting time for our company.”


Union Jack Oil PLC (AIM:UJO) executive chairman David Bramhill has, in today’s interim report, highlighted important progress made at the company’s three key projects – Wressle, West Newton and Biscathorpe.


The optimisation of production at the Wressle field has been a key recent highlight, with the field performance exceeding expectations following a proppant squeeze programme on the Ashover Grit reservoir. Presently, rates are in excess of the 500 barrels of oil per day gross production target at Wressle and Union Jack – which owns 40% of the field – sees the asset as being financially transformational for the company should its impressive present cash flow can be sustained.


“If Wressle is only half as good as we anticipate, then we will be hearing much more about this development for many years to come,” David Brahmill said in his statement.


“The revenue potential from Wressle, the royalty stream and our wider appraisal testing and planned drilling activities, all augur well for the execution of our strategy in delivering material growth in the medium term and achieving our goal of building a sustainable, cash generating and profitable, UK onshore focused, mid-tier conventional hydrocarbon producer.”


Tullow Oil PLC (LSE:TLW) chief Rahul Dhir described a strong operational performance as the company released financial results for the first half, in which sales revenue was slightly lower but it turned a profit after a loss last year.


Dhir highlighted that this year’s transformational debt refinancing put Tullow on “a firm footing to deliver its business plan”. Tullow produced 61,230 barrels oil equivalent per day in the first half, versus full-year guidance for 58,000 to 61,000 boepd.


Sales revenue amounted to US$727mln, down from US$731mln in the comparative period of last year, whilst gross profit was marked at US$321mln versus US$164mln. The company made a US$93mln profit compared to a US$1.32bn loss in the first half of 2020.

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