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IMHO - A higher share price post May 2024 is a good bet because, Swindells and Nunn each have options on Deltic Energy (3,532,600 Each) at various prices exercise between 26.5p and 75p.
A large rise will only work if shareholders vote for it. IMHO shareholders will not vote for such a rise unless the alternative is administration (e.g. SCE). In this case also there is not sufficient time to organise a shareholder vote.
This is such a roll of the dice here. Tempted to get back in but have two concerns 1)they give up the license for nothing (sp drops to 12p then recovers on Selene drilling start-up), 2) they do a mega-raise and 12-15p.
Anyone know for sure whether mgt are restricted from doing a ÂŁ10m capital raise?
Great management here, far better than those 🤡 🤡 at RBD surely?
@Jack Diamonds,
Why aren't you criticising the two 🤡 🤡 at RBD for writing off £40 million in 'non-core assets, which happened to be 90% of all the money the company has ever raised it appears, where was the Director's fiduciary duty to Shareholders at RBD? Pot and kettle comes to mind! JMO Adyor!
IMHO - There is no evidence that Deltic have broken any rules regarding disclosure in the accounts or in the RNS of 30 April. Their error is to try to do two projects at the same time, rather than in sequence (e.g. 6 or more months apart). There are many examples of companies that fall into similar problems as a result of trying to expand far too quickly.
I suspect that Pensacola turned out much better than expected, (just too good to miss) and Shell may have accelerated their development at Pensacola to put Deltic under pressure.
But, we are where we are. IMHO the share price is far too low at the moment.
I appreciate all comments but the Directors cannot have it both ways. When you look at the below Audit commentary its clear to me that Going Concern is a 12 month forward view of the Company's financial position.
You can see from this statement that between 16 Apr 24 and 30 Apr 24, their view of the Farm Out landscape has moved considerably. The Capital Markets position would have been the same on both dates.
Directors have a fiduciary duty to Shareholders to the point where I cannot believe we are discussing this.
Jack
Material uncertainty related to going concern We draw attention to note 1 in the financial statements, which indicates that the company incurred a net loss of £2,961,353 during the year ended 31 December 2023 and incurred operating cash outflows of £2,625,521 and is not expected to generate any revenue or positive cash outflows from operations in the 12 months from the date at which financial statements were signed. These indicate that additional capital will need to be secured to finance the Company’s budgeted exploration and development programme and to enable the Company to meet its other operational obligations as they fall due. As stated in note 1, these events or conditions, along with the other matters as set forth in note 1, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. In auditing the financial statements, we have concluded that the director’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the company’s ability to continue to adopt the going concern basis of accounting included: • We obtained and reviewed the latest cash flow forecasts for the Company which included the period of 12 months from the date of approval of these financial statements. In doing so we challenged and corroborated management’s key assumptions included in the cash flow forecasts. This included comparing forecast operating costs to historical cost levels and evaluating whether the work commitments are appropriately costed and consistent with the budgeted licence work programme; • Discussing with management how they intend to secure capital to finance the exploration and development programme necessary for the Company to continue as a going concern, in the required timeframe and considering this in light of the Company’s track record to secure farm-outs and its ability to access equity funding; and, • Critically assessing the disclosure made within the financial statements for consistency with management’s assessment of going concern. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Rns states they will do farm down , equity raise, or asset sale percentage give way . Imo the people that put up the last 20m surely must be happy with progress to further fund the project to the end
IMHO - If they hand back Pensacola - it just means they write off anything they have spent on it. It does not impact the Going Concern as this is all about Delta being able to fund its activities going forward.
My view would be that they have informed the market of their problems with farm-out promptly when the last potential partner said that they could not do a deal before the end of May on the terms offered. They did not pick the date as you seem to imply.
Deltic have a duty to inform investors of any material event promptly when it occurs.
The usual situation with accounts is you agree a timetable with the Auditor and schedule a Board Meeting to fit in with the Audit, so the intended signing date would be known in advance.
Jack, your frustrations totally understood!
However, even if we hand over Pensacola, Delt is a going concern, just with less assets. The report is first and foremost done to cover a distinct historic period of time, what's important is the outcomes over the next few weeks.
I do share the frustrations though!!
Jack you make some interesting if not concerning points. Company House often take time to show accounts which are usually edited.
99,
Pages 1 and 2 and 6 are misleading statements with regard to Pensacola.
The Directors declaration of a Going Concern on Page 15 is materially incorrect.
The Auditors Going Concern statement on Page 28 is materially incorrect.
Materiality Limits on Page 29 supports the above.
Are you seriously saying that the Directors and Statutory Auditors all met on 16 Apr 24 to sign these statements and two weeks later the Pensacola RNS drops effectively blowing all funding assumptions away.
No No No.
You have to remember that FO discussions were ongoing and the Directors would have known the status on 16 Apr 24 in addition to the capital markets position.
The whole position didn’t turn sour in 14 days.
Let’s see if they are indeed filed in their current form.
Jack
As far as I am aware they just need to include a note on any (significant) post balance sheet events up to the date they are signed. Deltic have a history of singing them during April. There is no set date the accounts need to be signed, except that they need to be approved by the board of Directors before signing.
The RNS today shows accounts dated 16 Apr 24, which are currently not showing on Companies House. They are due by 30 June 24.
I would view them as materially incorrect as they should be updated to show the latest Pensacola position announced to Shareholders on 30 Apr 24.
The senior auditor should step in and manage this, as they are already in the public domain on the Deltic website.
Peter Nicol, chairman of the audit committee please step up.
We can all play games should this document be filed at Companies House before amendment.
Jack
Cash price of 24p
Audit value assets at 17m plus cash 5.6m current market cap at 21 to 22m imo
PI's should review GS's interview on Proactive ( 19th January).
If this game of Poker fails in the next 3 weeks, Swindells and the Board will have a torrid time on 4th June.
The board would have been castigated had they not made an announcement concerning the fundamentals of the business so this was a proper corporate decision no doubt with all sorts of undertones. a week is long time in politics and seemingly oil exploration too .Less than 3 weeks before we all find out what is happening so just be patient and hopeful of a positive outcome
I just hope we don't give it away and it's a major success, and then it's pats on the back for everyone in Deltic and how good they are at finding hydrocarbons and so on and so on, Errr no it's us the inventors that have financially paid for this and i for one also participated in the rights issue, and i am now looking at life changing losses, we as shareholders are looking for a return on our investments, and Swindell has painted an extremely glossy picture until that last RNS, it's now time to earn your corn Mr Swindell.
Is it a possibility that Deltic just put itself up for sale to the highest bidder..
Pensacola is possibly worth over 200 million dollars to deltic..
Plus they have Selene and 2 new license’s
The Shell-operated Pensacola well has been successfully tested, with gas flows in line with pre-test expectations and significantly the well data confirmed an estimate of 302bn cubic feet of recoverable resources.
It is described as the largest new gas discovery in the North Sea for over a decade.
Dr, i've been thinking, well trying to think about the RNS, the only logical result of the RNS issued prior to the end of May and a total loss scenario would be to soften the blow, but saying that you then get two blows? but i also don't get the logic if it was some type of negotiation, as you don't alienate your future partners by playing games. I am for one very disappointed by the whole approach and if there is no plan B the drill should of been postponed or some type of a previous deal done with Shell as a fall back.
Rot/JD, all fair comments!
However, if the RNS had no purpose, why issue it? Why not wait until of May and just say it's over, Pensacola has been lost?
I think they are frantically working on it. Will they succeed? Unsure, TBC.
If lost, it's better to just say it and we move on and focus on Selene.
Well that last rns and its details don't seem too downbeat
ROT1
Yes the license awards fly in the face of the black picture Swindells painted on FO partners and capital markets.
I also don’t believe that the RNS was some sort of time lapsed marketing pitch to save Pensacola or that the Shell partnership would be somehow damaged if the licence returned to them.
Maybe the idea of a Multi drill was too good to be true and all along a sacrifice would need to be made.
Success at Selene will take the SP back over 40 and beyond, cement the partnership with Shell and Dana and provide shareholder returns.
All very odd
Jack
Just reading this on the NSTA 33rd round .
A total of 82 offers to 50 companies have now been made in the round which attracted 115 bids from 76 companies across 257 blocks and part-blocks. The licences offered in the round have the potential to add an estimated 600 million barrels of oil equivalent (mmboe) up to 2060, or 545 mmboe by 2050. 
Wow now that's a lot of offers from a lot of companies, and Swindell puts out an RNS a deal can't be done ! after reading that i most certainly think there is deal to be done, we have a discovery and a partnership with Shell ffs. Its not a wild cat drill, but an appraisal well, i think by the numbers above there will be quite a few interested, i still dont get the RNS and probably never will with the resultant SP collapse, i just hope there is no underhand skullduggery going on. I hope these numbers give others some confidence in these nerve shattering times. Rot.