The Pensacola prospect is a Z2 Zechstein reef partially mapped on 3D seismic data and is analogous to similar structures identified on adjacent blocks. The reef is 15km long by 6km wide and clearly defined on 2D and 3D seismic and builds to more than 200m above the surrounding Z2 (Hauptdolomite) platform.

The Pensacola prospect may contain upto 982 BCF of gas initially in place with an estimated gross P50 recoverable resource of 309 BCF. A number of potential commercialisation options exist via the existing Breagh infrastructure or a new pipeline to Teesside.

Following the farm-in by Shell in early 2019, approx. 470km² of new broadband seismic was shot over the prospect and surrounding areas in August 2019. Processing of the newly acquired data is ongoing with final volumes to be delivered during the summer of 2020 with a drilled decision to be taken by end November 2020 under the terms of the licence.

The Zechstein Reef play has been overlooked in the UKCS but recently there has been significant exploration success in this emerging play with similar nearby structures at Darach and Crosgan both successfully flowing hydrocarbons to surface on test. A potentially significant discovery has also been announced onshore, with the West Newton structure extending the playfair way into Yorkshire.

On 8^th February 2019 the Company announced that Shell U.K. Ltd were farming into Licence P2252 and the Pensacola prospect. Following completion of the transaction in Q2 2019 Deltic have transferred Operatorship and a 70% working interest in Licence P2252 to Shell in return for Shell funding 100% of the costs of a >400km² 3D seismic acquisition programme over Pensacola which was completed in the summer of 2019. Shell will also fund the associated processing of the acquired data and various petro-technical studies until a well investment decision or the end of 2020, whichever is sooner.

There is a contingent well commitment associated with the licence and it is expected that this well could be drilled as soon as late 2021. Costs associated with exploration well will be split in-line with working interest.

The Lytham-Fairhaven appraisal opportunity is located across blocks 41/5 and 41/10 takes the form of a large 4-way dip closed N-S oriented anticline compartmentalised by a series of roughly E-W oriented faults.  The key reservoir is a fractured Hauptdolomite platform carbonate and wells 41/5-1 (Walter Petroleum, 2004), 41/10-1 (Marathon, 1993) and 41/10-2Z (Lundin, 2007) have demonstrated the presence of gas in the Zechstein but what limited testing was attempted failed to flow gas due to various technical issues during drilling.

The next logical next step for the prospect is to drill a directional appraisal well perpendicular to the intense fracture oriented with the axis of the anticline to demonstrate the ability of the reservoir to deliver gas from the fracture network at commercial rates

The Lytham-Fairhaven prospect is estimated to contain gross recoverable resources of between 70 BCF and 190 BCF with a Gross Best Estimate (P50) Resource of 168 BCF.

Licence P2252 contains a number of significant prospects in the Zechstein and Carboniferous which have a combined P50 Prospective Resources of 636 BCF.