Neo Next+ Acquisition of Deltic Energy

UK independent Neo Next+ has reached a deal to acquire Deltic Energy for approximately £7.2 million ($9.8 million), ending months of uncertainty for the North Sea junior after previous takeover discussions failed. The cash acquisition improves upon an earlier £6.9 million bid from Viaro Energy, which was shelved due to regulatory concerns.

Background and Context

Deltic’s chief executive Andrew Nunn described the past year as “a period of significant uncertainty” and welcomed the deal, stating it represents “the best value and certainty for Deltic shareholders.” Eight months ago, Deltic announced plans for a takeover by Viaro Energy while teetering on the edge of administration, despite holding a key stake in the promising Selene gas discovery in the UK North Sea. After that deal collapsed in April due to regulatory delays linked to Viaro Energy’s potential operatorship, Deltic confirmed it was in talks with three other potential suitors.

Neo Next+ Expansion Strategy

Neo’s involvement builds on its recent expansion push, having acquired five North Sea assets since the beginning of last year, including a merger with TotalEnergies’ UK business in March. John Knight, chairman of Neo Next+, stated that “the acquisition of Deltic is consistent with our stated objective of continuing to consolidate ownership positions in the UK North Sea.” He noted that this represents the sixth transaction of the wider Neo Next+ Group since the beginning of 2025, and that “the Deltic portfolio offers attractive future development potential which we will integrate into our wider portfolio of opportunities.”

Key Assets and Deal Terms

Deltic’s main asset is licence P2437, which contains the Shell-operated Selene discovery with best estimate contingent resources of 174 billion cubic feet of gas. As part of the deal, Neo Next+ will provide a £2.9 million bridging loan to Deltic to repay a loan provided under its previous takeover deal. The acquisition is expected to close during the third quarter of this year, pending regulatory approvals.