Deltic Energy Plc said on Monday the UK “is not the ideal place in which to invest in new oil and gas exploration or appraisal opportunities.”

Deltic’s CEO Andrew Nunn said the company is actively assessing “a number of attractive opportunities in geographies where more supportive policies towards oil and gas development exist.”

The AIM quoted company said in a strategic, operational and organisational update: “For the last decade, Deltic has invested in its UK portfolio and achieved material exploration success despite the well-publicised political and fiscal headwinds that have hampered the UK’s oil and gas industry in recent years.

“It is clear that, while this situation persists, the UK is not the ideal place in which to invest in new oil and gas exploration or appraisal opportunities.

“Therefore, the board has carefully considered the best way to leverage the company’s international experience and expertise to create value for shareholders going forward.”

Deltic said that over the next 12 months, Deltic’s strategic focus will be on the “extraction of value from its existing core UK assets, principally the Selene prospect, while eliminating or deferring expenditure on non-core UK assets.”

The firm said it will leverage its core subsurface skill sets ,which have been deployed across a range of international territories historically, to “identify and access opportunities in overseas arenas with an initial focus on projects with early cash flows and faster cycle times from entry to value crystallisation.”

Deltic CEO Andrew Nunn said: “Our immediate focus is the ongoing Selene exploration well, where initial drilling indications are encouraging. I look forward to updating the market on the progress of this highly material well.

“The board has considered the best way to deploy the company’s experience and expertise to create value for its shareholders.

“As always, the balance of geological, operational and political risk must be considered and we are actively assessing a number of attractive opportunities in geographies where more supportive policies towards oil and gas development exist.”