The Pensacola discovery is a Hauptdolomite Fm, Zechstein aged reef. The reef is 15km long by 6km wide and builds to more than 200m above its surroundings. It is clearly defined on the proprietary Bluewater 3D seismic survey that was shot by the partnership in 2019.

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.

Drilled in December 2022 by the 41/05a- 2 well, gas and oil were flowed in a well test in January 2023, proving up a gas cap of 320bcf (P50 EUR) and a prospective down dip oil leg of 30mmbls (P50 EUR). This significant success is being analysed by the P2252 partnership with a view to drilling a further appraisal well in late 2024.

Deltic has commenced a formal process to pursue the value crystallisation options that exist for the Pensacola discovery which may involve monetisation and/or farm down of its equity interest in the Pensacola discovery.

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 also funded the associated processing of the acquired data and various petro-technical studies which resulted in a positive well investment decision in March 2021. Costs associated with exploration well will be split in-line with working interest.