NEO NEXT+ Energy Upstream UK has reached agreement to acquire Deltic Energy (AIM:DELT), an AIM-quoted natural resources investing company focused on Southern North Sea gas, for 7.7p per share in cash valuing Deltic at approximately £7.2m on a fully diluted basis.
The Deltic board, advised by Allenby Capital, unanimously recommends the transaction as it delivers immediate cash value and certainty to shareholders against a backdrop of volatile markets, illiquid trading and accrued liabilities and deferred payments totalling in excess of £5.5m.
The Acquisition consideration is cash only and NEO NEXT+ will provide Bridge Financing of up to £2.9m to repay an existing RockRose facility; NEO NEXT+ has also agreed to meet certain Deltic costs if the deal does not complete due to specified trigger events.
Deltic brings a 25% non‑operated interest in the Selene discovery and the Pensacola and Selene exploration successes, assets that require substantial further investment ahead of an expected FID in mid‑2029 and first gas currently estimated in early 2031.
The deal is intended to be implemented by a Court-sanctioned scheme of arrangement, is subject to customary conditions including NSTA clearance and shareholder approvals, and the Scheme is expected to become Effective in Q3, subject to satisfaction or waiver of conditions.
NEO NEXT+ says the acquisition furthers its consolidation strategy in the UK North Sea and will be integrated into a group that the Announcement describes as the largest oil and gas producer on the UKCS; "The acquisition of Deltic is consistent with our stated objective of continuing to consolidate ownership positions in the UK North Sea," John Knight, Chairman of NEO NEXT+, said.
