Oil price, Genel, PetroTal, Star, Deltic, Reabold. And finally…

WTI (June) $95.08 -$7.19, Brent (July) $101.27 -$8.60, Diff -$6.19 -$1.41.

USNG (June) $2.73 -6c, UKNG (June) 108.55p -5.95p, TTF (June) €44.645 -€1.39.

Oil price

Oil has fallen again today after last night’s drop when the market decided that a peace deal might come after the White House said that hostilities were on pause as Iran considered the memo. Both WTI and Brent are down $4.50 as I write and I remain convinced that China will play an important part in all this. 

Genel Energy

Genel has issued the following trading and operations update relating to Q1 2026, ahead of the Company’s Annual General Meeting, which is being held today.

KURDISTAN

• We note DNO’s statement today regarding operations on the Tawke licence:

“In Kurdistan, DNO started the year with strong production from its operated  Tawke license, where it also brought two newly drilled wells onstream early in the quarter. However, as a safety measure, the  Company elected to temporarily halt production and drilling following the launch of U.S.-Israeli air strikes against Iran on 28 February.

Limited field operations restarted on 9 April 2026, with resumption of workovers of existing wells and relaunch of the previously announced eight‑well drilling campaign in preparation for stepped-up rates of production from the Tawke and Peshkabir fields when security and market conditions improve.”

• Gross average production up to the date of suspension was 79,900 bopd compared to December gross average production of 80,700 bopd
• Gross production of 52,800 bopd up to 31 March (Q4 2025: 77,270 bopd)
  • Working interest production of 13,200 bopd (Q4 2025: 19,320 bopd)
  • Q1 2026 sales price average was $31/bbl (Q4 2025: $32/bbl)

OMAN

• Work is ongoing on analysing data collected from the initial work programme and assessing its implications for the location of further activity on Block-54, which includes the acquisition of 3D seismic data and drilling two exploration wells over the next 2 years

SOMALILAND

• Work towards drilling of the highly prospective Toosan-1 exploration well is ongoing

FINANCIAL

• Q1 2026 production business free cash flow after interest of $2 million inflow although impacted by no proceeds being received for the month of suspended production in March (Q4 2025: $5 million inflow)
• Q1 2026 free cash flow of $2 million outflow (Q4 2025: $2 million outflow)
• Balance sheet at 31 March 2026
  • Cash of $222 million (YE2025: $224 million)
  • Total debt of $92 million (YE2025: $92 million)
  • Net cash of $131 million (YE2025: $134 million)

• Balances with KRG
  • $88 million (under KBT pricing and excluding interest) remains overdue from the KRG, although this has been reduced by about $40 million of credit balances. We continue to work towards a plan for payment or settlement of amounts owed, and appropriate adjustment for price and interest
  • Not included in the $40 million, Genel Energy Miran Bina Bawi Limited, a subsidiary of the group, owes the KRG around $26 million relating to an arbitration costs award. The appeal against this award, held in April, was unsuccessful and there will be no further legal challenge

OUTLOOK

• At Tawke, the Company continues to monitor developments closely with the Operator to assess when full production can be resumed safely
• Once restarted, Tawke free cash flow at production and price levels before the suspension is expected to continue to cover organisational costs
• Incremental to the production business, the Company continues to expect to invest up to $20 million on its pre-production assets:

• On Block 54 in Oman, in line with the 3-year initial exploration phase work plan, which includes 3D seismic acquisition and drilling two wells, as we announced at the time of entering the licence in the first half of 2025
• SL10B13 in Somaliland, as we make progress towards drilling the Toosan-1 prospect in 2027

• The Company continues to progress towards building a business with a strong balance sheet that delivers resilient, reliable, repeatable and diversified cash flows that support a dividend programme. The Company’s objectives for the year on the path to building that business include:

• acquisition of new assets to diversify our reserves and resources and cash generation
• restart of exports of Tawke oil to access international pricing
• pursuit of net amounts owed by the KRG
• safe and efficient execution of activity on Block 54
• further progress towards drilling Toosan-1

This update, for the AGM and also as DNO has also given the market current advice, gives an opportunity to keep shareholders informed about the situation in Kurdistan.

We know that whilst production was halted when the war started ‘limited field operations restarted on 9 April 2026, with resumption of workovers of existing wells and relaunch of the previously announced eight‑well drilling campaign in preparation for stepped-up rates of production from the Tawke and Peshkabir fields when security and market conditions improve.”

This is good news and I would suggest that given the work done in the last few weeks, that almost as soon as the war ends that Genel will be back in business with little delay. In Oman things are going as expected, in line with the 3-year initial exploration phase work plan. And in Somaliland ‘progress is being made towards drilling the Toosan-1 project in 2027’.

Overall I am sure that, apart obviously from the current operational standstill, Genel remains in a very strong position, ‘with a strong balance sheet that delivers resilient, reliable, repeatable and diversified cash flows that support a dividend programme’. I remain happy with Genel as a member of the Bucket List, it has an outstanding underlying value and my target price of 100p is easily achievable. 

PetroTal Corp

PetroTal has reported its operating and financial results for the three months ended March 31, 2026. All amounts herein are in United States dollars unless stated otherwise.

Selected financial and operational information outlined above should be read in conjunction with the Company’s unaudited consolidated financial statements and management’s discussion and analysis for the three months ended March 31, 2026, which are available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.PetroTal‐Corp.com.

Key Highlights

(1) Non-GAAP (defined below) measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. See “Selected Financial Measures” section. 

Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:

“Our first quarter results reflect a continued focus on maintaining production at Bretana and positioning the Company for a return to growth, while also highlighting the positive impact of improving crude oil prices. Stronger realized pricing in March contributed to a 90% increase in Adjusted EBITDA compared to the prior quarter, despite lower production volumes in the period. This result demonstrates the Company’s operating leverage and ability to generate meaningful cash flow even at lower production levels.

At Bretana, we remain focused on preparing the field for its next phase of growth. During the quarter and into April, we advanced key infrastructure initiatives, including stimulation work on water injection wells to increase injection capacity and help stabilize production ahead of our upcoming drilling campaign. We are already seeing the benefit of this work, with year-to-date sales volumes tracking slightly ahead of expectations as we approach the midpoint of the second quarter.

In parallel, we have made good progress towards resuming our development drilling program. We recently signed a contract with a third-party drilling company and are advancing plans to mobilize the rig to the field, with drilling expected to begin in October 2026. We also plan to carry out pulling jobs in three wells in the third quarter, which we have scheduled ahead of the resumption of our drilling campaign, to help optimize performance and reduce the potential for production disruptions later in the year.

Looking ahead, our priorities remain clear: sustain and build production at Bretana, execute our capital program, and position the Company to return to growth. We believe the steps we are taking today will improve operational reliability, support efficient capital deployment, and create long-term value for our shareholders.”

Well, this is indeed a very upbeat update from PetroTal and the more welcome in that it has come a little earlier than even I had expected. With production as expected, EBITDA of $35.3m was good given the lower level and up 90% on 1Q 2025. 

As I have suggested in recent blogs the read that I am getting from PetroTal is increasingly optimistic and today that has definitely been raised a notch or more which can be seen in the increased guidance shared by the company. 

EBITDA expectations have been raised from $35-40m to $110-120m, a huge move and not done lightly I imagine and the financial position at the company seems to be rapidly improving, or as I heard today ‘the engine is absolutely humming’. 

With the operational activity at the Bretana field making good progress, the existing rig is near to sale and the contract to sign with a third-party announced, and they have forecast drilling a well in October. With other remedial work expected in Q3 in order to ‘help optimise performance and reduce the potential for production disruptions later in the year’ all looks pretty sweet.

With the new senior management signings making significant positive contributions and the company rebuilding faster than expected PetroTal is in a very good place, and not just owing to the current situation in the oil market. 

Investments and attention to the local communities have been significant- with strong local support from the locals – making PetroTal the ’communities choice’ for further opportunities. 

The shares have understandably been quiet for some time, as the management got to grips with challenges posed by the erosion and drilling -this  led to a heads down approach that appears to have paid off. Expect to see them back on the road shortly. 

I am now totally convinced that I have been correct not to lose faith in PetroTal or its board during this time. My 75p target price is looking extremely undemanding and if recovery is as good as I think it will be, that number may well look conservative and soon and the position in the Bucket List will be 100% justified. 

Selected Financial Highlights

1.        Approximately 98% of Q1 2026 sales were through the Brazilian route vs 88% in Q4 2025.

2.        Royalties include the impact of the 2.5% community social trust.

3.        Non-GAAP (defined below) measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. See “Selected Financial Measures” section.

4.        Net operating income represents revenues less royalties, operating expenses, and direct transportation.

5.        Adjusted EBITDA is net operating income less general and administrative (“G&A”) and plus/minus realized derivative impacts.

6.        Market capitalization for Q1 2026, Q4 2024 and Q1 2025 assume share prices of $0.3943, $0.2757 and $0.4758 respectively on the last trading day of the period.

7.        Free funds flow is defined as adjusted EBITDA less capital expenditures. See “Selected Financial Measures” section.

8.        Includes restricted cash balances. 

Additional financial and operational updates during and subsequent to the quarter ending March 31, 2026:

Operations Update

PetroTal continues to advance key operational initiatives at the Bretana field, positioning the Company to resume development drilling in October 2026. The Company has executed a contract with a third-party drilling service provider, whose rig is currently completing operations in Colombia. Following demobilization, the rig is expected to be transported to Peru by road and river, similar to prior equipment moves. Infrastructure work to position the drilling rig, along with the electromechanical activities required to tie in new wells to existing facilities, is progressing as planned. The operations team is also preparing to facilitate the rapid connection of the new wells, optimizing early production rates.

In April 2026, PetroTal conducted stimulation work on three of the four water injection wells at the Bretana field. The program was designed to increase formation water disposal capacity from the first quarter 2026 average of approximately 170,000 barrels of water per day (“bwpd”), to help support oil production ahead of the resumption of development drilling later this year. Bretana field production averaged approximately 12,850 bopd in April, reflecting brief, planned shut-ins of producing wells during the stimulation work. Since completing the program, production has increased, averaging approximately 13,050 bopd in the first week of May, while water injection capacity has risen to just over 180,000 bwpd.

In Q3 2026, PetroTal plans to carry out pulling jobs in three producing wells at Bretana, in keeping with expectations outlined in the Company’s 2026 budget guidance. This work is being advanced ahead of the planned restart of development drilling later this year.

Erosion Control Project

PetroTal expensed $4.1 million for erosion control in Q1 2026, consistent with the prior quarter, bringing total cumulative investment in the project to $36.8 million as of March 31, 2026. As disclosed previously, PetroTal terminated the erosion control project contract with the prior construction consortium in March 2026 and has initiated a procurement process to secure new contractors to complete the project. The tender process is underway and PetroTal expects to award a new contract by the end of June 2026. The Company will provide additional updates on the erosion control project as necessary.

Cash and Liquidity Update

PetroTal ended Q1 2026 with a total cash position of $128.1 million, of which $104.2 million was unrestricted. This compares to total cash of $139.1 million at the end of Q4 2025 and $113.6 million at the end of Q1 2025. The decrease in cash relative to the prior quarter is primarily due to the settlement of annual cash taxes, which amounted to approximately $10 million in Q1 2026. PetroTal’s trade receivables increased by $23.4 million relative to the prior quarter, as the Company benefited from stronger realized pricing in the month of March.

PetroTal has not initiated any new production hedges since the end of March 2026. In line with previous disclosure, the Company maintains hedges on approximately 0.9 million barrels over the remainder of 2026. The costless collars have an average Brent floor price of $60.00/bbl and a ceiling of $80.50/bbl, with a cap of $100.50/bbl. As of April 21, PetroTal’s production hedges had a fair value of negative $11 million.

Guidance Update

PetroTal’s original 2026 guidance, released on January 20, 2026, was based on an assumed annual Brent oil price of $60.00/bbl and contemplated Adjusted EBITDA of $30-40 million for the full year. Supported by an average dated Brent oil price of $74.65/bbl during the first quarter of 2026, the Company generated approximately that level of Adjusted EBITDA during Q1 alone.

Incorporating first quarter actual results and updating the forecast for recent Brent strip pricing, PetroTal now expects to generate Adjusted EBITDA of approximately $110-120 million for full-year 2026.

This updated guidance is driven solely by changes in the Company’s oil price assumptions. PetroTal is not currently anticipating any material changes to its previously disclosed production outlook, major operating cost assumptions, or 2026 capital expenditure budget.

Corporate Presentation Update

The Company has updated its Corporate Presentation, available for download or viewing at https://petrotalcorp.com/investors/Q1 2026

Star Energy

Star has announced that the Retail Offer launched on 1 May 2026 via the BookBuild platform has raised in aggregate £541,152.90 through the issuance of 3,607,686 Retail Offer Shares at a price of 15 pence per share.

Accordingly, the Company has conditionally raised total gross proceeds of approximately £9.1 million in aggregate by way of the Placing, the Subscription and the Retail Offer.

A separate announcement will be made following the General Meeting as to the results of the General Meeting and the total voting rights following Admission.

Good news from Star as it proceeds to the next phase of its planned development, the raise from both the placing and subscription  as well as today’s news that the Retail offer was very well subscribed means that the company has raised £9.1m in total.

Star will now use the proceeds, along with cash continually being generated from its portfolio, and notably strength in the share price, to move forward with its organic and inorganic process. I remain very happy with the company and indeed the direction that the board are taking it.

Reabold Resources

Reabold has announced that, following shareholder approval at the General Meeting held on 27 April 2026, the proposed Share Consolidation will become effective on 8 May 2026.

The Share Consolidation will be implemented on the basis of 1 new Ordinary Share for every 1,000 existing Ordinary Shares. To facilitate the Share Consolidation, 793 additional existing Ordinary Shares will be issued to the Company’s Registrar immediately prior to the Consolidation to ensure that the total number of Ordinary Shares in issue as at the Record Date was divisible by the consolidation ratio.

Admission of the Company’s new Ordinary Shares to trading on AIM is expected to take place at 8:00 a.m. on the Effective Date.

For information only… 

The ISIN for the new Ordinary Shares is GB00BVK55Z16.

Total Voting Rights

As a result of the Share Consolidation, the Company’s issued share capital as at 8:00 a.m. on 8 May 2026 consists of 14,706,486 ordinary shares of £1.00 each. Of these, 280,271 shares are held in treasury.

Therefore, the total number of voting rights in the Company is 14,426,215. This figure may be used by shareholders and others with notification obligations as their denominator for the purposes of calculating whether they are required to notify their interest in, or any change to their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Deltic Energy

The boards of NEO NEXT+ and Deltic have announced that they have reached agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Deltic.

·              Under the terms of the Acquisition, which will be subject to the Conditions and other terms set out in this Announcement and to the full terms and conditions to be set out in the Scheme Document, Deltic Shareholders will be entitled to receive:

for each Deltic Share:                         7.7 pence in cash
(the “Cash Consideration”)

The Cash Consideration represents a premium of approximately 156.7 per cent. to the Closing Price of 3.0 pence per Deltic Share on 21 April 2026 (being the last trading day before the commencement of the Offer Period).

The Acquisition values the entire issued and to be issued share capital of Deltic at approximately £7.2 million on a fully diluted basis.

If, on or after the date of this Announcement and on or prior to the Effective Date, any dividend and/or other distribution and/or return of capital is authorised, declared, made or paid or becomes payable in respect of the Deltic Shares, NEO NEXT+ reserves the right to reduce the Cash Consideration payable under the terms of the Acquisition by an amount equal to all or part of any such dividend and/or other distribution and/or return of capital, in which case Deltic Shareholders would be entitled to receive and retain any such dividend and/or other distribution and/or return of capital. Any exercise by NEO NEXT+ of its rights referred to in this paragraph shall be the subject of an announcement and, for the avoidance of doubt, shall not be regarded as constituting any revision or variation of the terms of the Scheme or the Acquisition.

In connection with the Acquisition, NEO NEXT+ has agreed to provide a bridging loan of up to £2.9 million (the “Bridge Financing”) to repay the bridging loan provided to Deltic in connection with the RockRose Offer, including any fees, costs and expenses due and payable to RockRose in relation to such repayment (further details of which are set out in paragraph 13 below).

In addition, in consideration for Deltic engaging in discussions with NEO NEXT+ in connection with the Acquisition, NEO NEXT+ has undertaken to pay, or procure the payment of, certain costs reasonably and properly incurred by Deltic in the event that the Acquisition does not complete due to the occurrence of certain trigger events (further details of which are set out in paragraph 13 below).

It is intended that the Acquisition will be effected by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act. However, NEO NEXT+ reserves the right to elect to implement the Acquisition by way of a Takeover Offer (subject to the consent of the Panel).

Background to and reasons for the Acquisition

The Wider NEO NEXT+ Group is the largest oil and gas producer in the UK North Sea and has grown rapidly through both acquisition and organic growth.  Since the beginning of 2025 the Wider NEO NEXT+ Group has announced five transactions to consolidate its interests in the UK North Sea, namely:

·      Strategic merger with Repsol Resources UK;

·      Corporate acquisition of Gran Tierra North Sea Limited;

·      Asset acquisition of 32% interest in Culzean;

·      Strategic merger with TotalEnergies’ UK business;

·      Corporate acquisition of Sojitz Energy Development Limited.

The Wider NEO NEXT+ Group’s ambition is to be a safe, top-tier operator on the UK Continental Shelf that generates leading financial returns.

The proposed acquisition of Deltic is consistent with this ambition and continues the Wider NEO NEXT+ Group’s strategy to grow its UK North Sea business.

Deltic’s strategy today

Deltic’s strategy as an investing company has been focussed on the identification and maturation of new or overlooked exploration activities in the UK North Sea with a particular focus on the Southern North Sea Gas basin. Deltic typically identified opportunities and applied for licences at 100% working interest, with the intention of reducing capital exposure to the projects by bringing partners to fund key aspects of the work programme including seismic acquisition and exploration drilling activities with the option to crystallise value from the assets prior to incurring the costs associated with offshore developments. This approach saw Deltic successfully farm-out a number of licences to established partners, two 3D seismic surveys acquired and two exploration wells drilled, both of which resulted in major discoveries at Pensacola and Selene.

Given the uncertain fiscal and policy environment which has persisted in recent years in the UK, it has become extremely challenging to both continue funding the Deltic business model via the equity markets or to realise significant value from exploration success.

Recommendation

The Deltic Directors, who have been so advised by Allenby Capital as to the financial terms of the Acquisition, consider the terms of the Acquisition to be fair and reasonable.

In providing advice to the Deltic Directors, Allenby Capital has taken into account the commercial assessments of the Deltic Directors.

Allenby Capital is providing independent financial advice to the Deltic Directors for the purposes of Rule 3 of the Takeover Code.

Accordingly, the Deltic Directors intend to unanimously recommend that the Deltic Shareholders vote (or procure votes) in favour of the Scheme at the Court Meeting and vote (or procure votes) in favour of the Deltic Resolution(s) at the General Meeting as the Deltic Directors who hold Deltic Shares have irrevocably undertaken to do in respect of 240,336 Deltic Shares in total, representing in aggregate approximately 0.26 per cent. of Deltic’s ordinary share capital in issue as at the Latest Practicable Date. The irrevocable undertakings given by the Deltic Directors remain binding in the event a higher competing offer is made for Deltic by a third party.

Considerations for the Recommendation

Since 2014, Deltic has been focussed on its UK gas exploration strategy which has delivered material success, including farm-outs to Shell, Capricorn Energy and Dana Petroleum and two significant gas discoveries in the Southern North Sea at Pensacola and Selene. However, this success has come against a backdrop of volatile oil and gas prices, significant inflationary pressures, an unpredictable UK fiscal regime since the introduction of the Energy Profits Levy in 2022 and the election of a UK government which has further undermined the UK’s domestic oil and gas industry by pledging to end exploration licencing and banning drilling for new oil and gas fields in UK waters.

The Deltic Directors consider that continuing uncertainty around the UK government’s support for the domestic oil and gas industry has undermined investor confidence in the sector. This ongoing uncertainty has been especially difficult for smaller exploration or development focussed oil and gas companies which are pre-revenue, many of which have suffered a material erosion in valuation and share liquidity since early 2024.

The 25 per cent. non-operated interest in the Selene discovery represents a material asset for Deltic with material long term cash-flow potential, although it will require substantial additional investment for studies and development capital expenditure prior to delivery of first gas which is currently estimated in early 2031. While debt facilities or gas sales pre-payment options may potentially be available to satisfy the majority of Deltic’s capital requirements following a final investment decision, expected in mid-2029, the Deltic Directors consider that Deltic would be wholly reliant on equity funding until that point.

Deltic has accrued debt and deferred liabilities totalling in excess of £5.5 million, including (i) a £2.7 million bridge facility with RockRose in connection with the RockRose Offer (the “RockRose Facility”) which, as a result of the Acquisition being announced today, is due for repayment on 21 May 2026 and is being replaced by the Bridge Financing; and (ii) deferred payment agreements with Adura in relation to Pensacola, and Shell in relation to Selene, which become payable from September 2026 in relation to Pensacola and the end of August 2026 or on a change of control in relation to Selene. These deferred payment agreements represent a significant deferred liability for Deltic that becomes due for payment prior to first revenues from a potential Selene development in 2031.

Deltic has fully drawn the funds available under the RockRose Facility. It was originally envisaged that funds from this facility would be used to settle outstanding sums owed to Shell in relation to Selene drilling costs and the Pensacola deferred payment agreement. Given the extended regulatory approval period experienced following the announcement, and prior to the lapse, of the RockRose Offer, the funds available under that facility were diverted to meet the general working capital needs of Deltic and ensuring it remained funded for day-to-day operations.

On 12 December 2025, Deltic announced that it had entered into a deferred payment agreement with Shell U.K. Limited as operator of the P2437 Selene licence, in relation to the payment of: (i) in aggregate, £1,530,320, being the sums that have accrued to Deltic’s account in relation to the successful Selene exploration well from April 2025 to October 2025; and (ii) any further sums accruing to Deltic in relation to Selene after October 2025.

Under the deferred repayment agreement with Shell, Deltic’s payment of these amounts to Shell U.K. Limited was originally deferred to 27 February 2026 and most recently extended to 27 August 2026. Deltic may request further extensions of this date for a total of up to nine months from 27 February 2026, with the decision to grant any such extensions being at Shell U.K. Limited’s sole discretion.

In September 2024, Deltic agreed a deferred repayment agreement with its Pensacola joint venture partners whereby Deltic has a 24-month period from September 2024 to repay £0.9 million due to the joint venture. This agreement was subsequently assigned to Adura following the transfer of certain Shell and Equinor UKCS assets into the newly-formed Adura.

It is against this backdrop of continued and increasing cost exposure associated with the development of Selene and a lack of confidence in the equity market’s willingness to continue funding UK projects before further clarity is provided by the UK government, that the Deltic Directors have been considering the financial terms of the Acquisition and whether to recommend it to Deltic Shareholders. The Deltic Directors have taken into account a number of factors, including that:

·      Despite the quality of the Selene discovery and the current partnership group, there remains a number of significant stage gates in the process of achieving an FID on Selene. Any one of these could lead to the project being cancelled or delayed in response to external events, including further changes to UK government policy, the regulatory regime, the gas price environment and/or capital availability within the joint venture group.

·      The cash value per Deltic Share to be received pursuant to the Acquisition represents a premium of 156.7 per cent. to the Closing Price of 3.0 pence per Deltic Share on 21 April 2026 (being the last trading day before the commencement of the Offer Period).

·      The Acquisition provides Deltic Shareholders with the opportunity to realise an immediate and certain cash value. The Deltic Directors recognise the market in Deltic Shares over the last year has been relatively illiquid, making it difficult for Deltic Shareholders to realise their investment should they wish to do so.

·      As at 31 December 2025, as a result of drawing down funds available under the RockRose Facility, Deltic had unaudited cash resources totalling £1.65 million. Subsequent to that period end, the cash position of Deltic has reduced as a result of normal operational expenditure such that, as at 31 March 2026, Deltic’s unaudited cash balance was c.£1.0 million.

·      Deltic expects to receive a payment of $1 million (or c. £800,000) from Dana Petroleum in relation to its 2024 farm-in to Selene in May 2026, contingent only on Dana Petroleum remaining a partner in relation to the P2437 licence beyond 12 May 2026.

·      Whilst cash levels continue to be carefully managed, in the absence of the Acquisition proceeding, the Deltic Directors anticipate that Deltic would be required to raise additional capital before August 2026 to: (i) continue to fund Deltic’s share of the Selene work program until value can be realised from the Selene asset; (ii) allow Deltic to cover its existing and potential additional deferred liabilities to RockRose, Shell and Adura and (iii) to cover Deltic’s general corporate costs beyond Q3 2026.

·      In light of Deltic’s requirement to access additional capital during August 2026, the Deltic Board has explored the potential options to fund the business until first revenues on Selene could potentially be achieved, including assessing the possibility of an equity fundraise. However, given the difficult market conditions referred to above and having discussed with Deltic’s largest shareholder and previously with other potential existing and new investors their appetite to provide further funding, the Deltic Directors do not have confidence in Deltic’s ability to raise sufficient funds through an issue of equity. The Deltic Directors also believe that, given the stage of Deltic’s investments, providers of debt finance would be unwilling to provide the required debt facilities to Deltic.

·      Against this backdrop, the Deltic Directors believe that the Acquisition represents certainty for Deltic Shareholders in relation to the future of Deltic. The Deltic Directors also believe that, in the absence of alternative funding to settle the deferred liabilities and the Acquisition progressing, Deltic would be in an extremely challenging financial position, and the Deltic Directors may have no option but to place Deltic into administration. Should administrators be appointed, it is not known how much, if any, value would be returned to Deltic Shareholders.

·      The Deltic Directors have also considered NEO NEXT+’s stated intentions for Deltic’s business, assets, management and staff and other stakeholders of Deltic.

Following careful consideration of the financial terms of the Acquisition, the combination of value and certainty that the terms of the Acquisition provide to Deltic Shareholders and the factors noted above, the Deltic Directors intend to unanimously recommend the Acquisition to the Deltic Shareholders.

Irrevocable Undertakings

NEO NEXT+ has received irrevocable undertakings to vote in favour (or procure the voting in favour, as applicable) of the Scheme at the Court Meeting and the Deltic Resolution(s) at the General Meeting from:

·      IPGL Limited in respect of 14,678,781 Deltic Shares, representing approximately 15.77 per cent. of the ordinary share capital of Deltic in issue as at the Latest Practicable Date;

·      RockRose  Energy Limited in respect of 3,592,880 Deltic Shares, representing approximately 3.86 per cent. of the ordinary share capital of Deltic in issue as at the Latest Practicable Date;

·      Lord Spencer of Alresford in respect of 2,855,357 Deltic Shares, representing approximately 3.07 per cent. of the ordinary share capital of Deltic in issue as at the Latest Practicable Date; and

·      Sarah Flavell in respect of 30,172 Deltic Shares, representing approximately 0.03 per cent. of the ordinary share capital of Deltic in issue as at the Latest Practicable Date.

The Directors of Deltic have also given irrevocable undertakings to vote in favour of the Scheme at the Court Meeting and the Deltic Resolution(s) at the General Meeting in respect of an additional 240,336 Deltic Shares, representing approximately 0.26 per cent. of the ordinary share capital of Deltic in issue as at the Latest Practicable Date.

NEO NEXT+ has therefore received, in aggregate, irrevocable undertakings in respect of 21,397,526 Deltic Shares, representing approximately 22.98 per cent. of Deltic’s ordinary share capital in issue as at the Latest Practicable Date. These irrevocable undertakings remain binding in the event a higher competing offer is made for Deltic.

Further details of these irrevocable undertakings, including the circumstances in which they may lapse, are set out in paragraph 7 of this Announcement and in Appendix 3 to this Announcement.

Information relating to NEO NEXT+

NEO NEXT+ is a private company limited by shares.  It was incorporated on 11 February 2025 in Scotland with company number SC279865 and is registered under the Companies Act 2006.  The address of its registered office is The Silver Fin Building (9th Floor), 455 Union Street, Aberdeen, United Kingdom, AB11 6DB.

NEO NEXT+ is a holding company within the Wider NEO NEXT+ Group and holds investments in companies which are focused on the development and production of oil and gas fields in the United Kingdom Continental Shelf (“UKCS”).

The Wider NEO NEXT+ Group is the largest oil and gas producer on the UKCS with a 2P reserve base of 454.5 mmboe as at 31 December 2025[1].  The Wider NEO NEXT+ Group has well established technical knowledge and expertise across both operated and non-operated assets.  The Wider NEO NEXT+ Group is currently the operator of 32 producing fields and 1 terminal in the UK North Sea, these include the largest two producing assets in the UKCS, the Culzean field and Elgin-Frankin area.

Information relating to Deltic

Deltic is an AIM quoted natural resources investing company which has invested in a number of offshore oil and gas assets in the UK and is focused on realising the additional exploration potential of this proven hydrocarbon province.

Timetable and Conditions

·              It is intended that the Acquisition will be effected by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act. However, NEO NEXT+ reserves the right to elect to implement the Acquisition by way of a Takeover Offer (subject to the consent of the Panel).

·              The Acquisition is conditional on, among other things, the approval of the requisite majority of the Scheme Shareholders at the Court Meeting and Deltic Shareholders at the General Meeting. In order to become Effective, the Scheme must be approved by a majority in number of the Scheme Shareholders present and voting at the Court Meeting, either in person or by proxy, representing at least 75 per cent. in value of the Scheme Shares voted. In addition, the approval of the Deltic Resolution(s) by Deltic Shareholders representing at least 75 per cent. of votes cast at the General Meeting (expected to be held immediately after the Court Meeting) is also required for the implementation of the Scheme. In addition, following the Court Meeting, the Scheme must be sanctioned by the Court. Finally, a copy of the Court Order must be delivered to the Registrar of Companies, upon which the Scheme will become Effective. The Scheme must become Effective by no later than the Long Stop Date.

·              The Acquisition will be made in accordance with the Takeover Code and on the terms and subject to the Conditions which are set out in Appendix 1 to this Announcement, including the NSTA Condition, and on the further terms and conditions that will be set out in the Scheme Document.

·              It is expected that, the Scheme Document, containing further information about the Acquisition and notices of the Court Meeting and the General Meeting, and which will be accompanied by the forms of proxy, will be published as soon as reasonably practicable, and in any event within 28 days of this Announcement (or such later time as NEO NEXT+, and Deltic agree, and the Panel consents). The Scheme Document will specify the actions to be taken by Deltic Shareholders and will contain an expected timetable for the implementation of the Scheme.

·              The Scheme is expected to become Effective in Q3 of 2026, subject to the satisfaction or, where permitted, waiver of the Conditions set out in Appendix 1 to this Announcement.

Commenting on the Acquisition, John Knight, Chairman of NEO NEXT+, said:

“The acquisition of Deltic is consistent with our stated objective of continuing to consolidate ownership positions in the UK North Sea. This transaction represents the 6^th transaction of the Wider NEO NEXT+ Group since the beginning of 2025.  The Deltic portfolio offers attractive future development potential which we will integrate into our wider portfolio of opportunities.  We thank the Deltic team for their co-operation and look forward to working with them to conclude this transaction.”

Commenting on the Acquisition, Andrew Nunn, CEO of Deltic, said:

 “The last 12 months has been a period of significant uncertainty for Deltic, its shareholders, employees and other stakeholders.  Following the lapsing of the proposed acquisition of Deltic by RockRose Energy Limited, we received a number of approaches in relation to Deltic and its assets.  NEO NEXT+’s offer represents the best value and certainty for Deltic shareholders, and we are therefore delighted to have reached agreement on the terms of the Acquisition which should also provide a good home for the quality assets the Deltic team has progressed in recent years.”

At last the Deltic saga is over as they finally agree to a takeover that might actually go through, this time with NEO NEXT who are at least a quality counter party…

The Deltic team are understandably delighted given market conditions and to get the same price as the Viaro offer was thought to be a difficult job. This is a long way from what I had hoped for all those years ago but right now this a good deal for all concerned. 

And finally…

Last night PSG beat Bayern so they will face the Gooners on 30th May in Budapest. Tonight in the Boropa Cup Forest take a goal lead to Villa park…

And the Eagles are set fair, they carry a 1-3 lead back home against Shakhtar Donesk in the Plate competition.

And on the basis of ‘if you can’t beat them join them’ the English Cricket Board has apparently appointed Australian Marcus North as their new selector…