Deltic Energy Plc provided the following update in relation to its Pensacola Discovery on Licence P2252 in the Southern North Sea in which Deltic holds a 30% interest. Following commitment to the appraisal well in December 2023, operational planning for the Pensacola appraisal well has continued to progress according to plan. In anticipation of drilling the Pensacola appraisal well, long lead items have been ordered, the geophysical site survey over the proposed well location has been completed and the final geotechnical site survey is scheduled to take place in May/June 2024.

The rig contract was entered into in February which secured the Valaris 123 heavy duty jack-up drilling unit to drill both the Selene exploration well and Pensacola appraisal well, with the Pensacola well due to be drilled immediately following completion of Selene operations. The rig is currently operating in the Central North Sea following which it will move to Selene. Subject to the timing of the completion of Selene, the Pensacola well remains on track to be drilled in Fourth Quarter 2024.

The feedback from Deltic's Pensacola farm-out process has indicated that the continual tinkering with the Energy Profits Levy and resultant fiscal uncertainty created by the current government, along with recent rhetoric emanating from the Labour Party, have had a severely negative effect on the ability of UK Exploration and Production (E&P) companies to commit to long term investments in the North Sea. This has resulted in many operators diverting capital away from the UKCS or delaying investment decisions, especially with respect to new large-scale opportunities like Pensacola. Against this hostile political environment, and despite the Company's best efforts, Deltic have not yet been able to secure a farm-out partner for Pensacola and 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.

Company remain of the view that Pensacola represents an excellent value-driven opportunity for the right partner and would be willing to engage with any additional potential partners. Potential for Licence Withdrawal If an industry and/or funding solution is not in place by the end of May 2024, being the point at which Deltic will be required to demonstrate its capacity to fund its share of costs, Deltic will be required to take steps to ensure the Company is not exposed to further expenditure on the Pensacola well if there is no reasonable expectation that the Company will be able to meet those additional liabilities which will be incurred going forward. In such circumstances, Deltic will be required to withdraw from the Pensacola licence and transfer its interest in Pensacola to the Joint Venture partners.