KEYFACT Energy
Graham Swindells, CEO of Deltic Energy explains to Proactive London how the company will benefit from a farm-out deal with Cairn Energy for five licences in the Southern North Sea.
Cairn will acquire between 60% and 70% of the licences and it will cover 100% of the agreed work programmes for each of the five licences. If the exploration assets advance to drilling, Cairn will cover 70% of the costs of the first well up to a maximum US$25mln.
Deltic will receive US$1mln upfront, representing a contribution towards historic back costs.