Response to Deltic Energy statement

Capricorn Energy notes today's announcement by Deltic Energy and confirms that it has been in discussions regarding a possible offer for Deltic Energy.

A further announcement will be made if and when appropriate. Shareholders are advised to take no action at this stage. There can be no certainty that any firm offer will be made nor as to the terms on which any offer might be made.

Rule 2.4(c)(iii) disclosure

As at today's date, Capricorn Energy holds an interest in 1,000,000 ordinary shares of Deltic Energy, representing approximately 1.1 per cent. of Deltic Energy's issued ordinary share capital. Pursuant to Rule 2.4(c)(iii) of the Code, if Capricorn Energy were to make an offer for Deltic Energy, under Rule 6 of the Code, Capricorn Energy would be required to make an offer with a value of not less than 3.00 pence per Deltic Energy share.

In addition, prior to this announcement it has not been practicable for Capricorn Energy to make enquiries of all persons acting in concert with it to determine whether any dealings in Deltic Energy shares by such persons give rise to a further requirement under Rule 6 or Rule 11 of the Code for Capricorn Energy, if it were to make an offer for Deltic Energy, to offer any minimum level, or particular form, of consideration. Any such details shall be announced as soon as practicable and in any event by no later than the deadline for Capricorn Energy's Opening Position Disclosure.

Rule 2.9 Information