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I really hope GS is an honourable man and actually delivers for us If he does I will be the first to congratulate him
But basic economics are the polar opposite of what they are doing for goodness sake a CFO!!!!
Mike I sent an email to Mr Swindells earlier this week raising many of the issues you point to in my email.
No reply as yet though, probably too busy with the operational phase developments :)
Exploration
Thanks for your replies.
You are one of the more well informed/read people on here and I don't want to become a pain in asking you to many questions, but.
Deltic have set aside money for their commited work with Shell. How much does that leave them for other work?
£13/£15 million does not seem a lot.
FD
The reason I keep grumbling is because we are told to expect this that and the other yet nothing of note ever seems to happen
I personally wouldn’t put too much stake into what MS does or doesn’t do
I am more interested in what our BOD do to push the company forwards
Mike you keep grumbling, of which I understand, but keep in mind why does MS continue to hold and makes clear his attitude towards a takeover. If he were to start offloading , that could be a cause for concern.
Well, a week remaining to see what those RBD city slickers have in mind.
I’m neutral, my clnr shares are bottom drawer, suitably alphabetical ordered between Admiralty resources and ctag....soI’m not expecting too much!
I don’t know what annoys me most
The ridiculous unnecessary placing
The wages
The bonus
The appointment of the CFO
The name change
If any criticism is due, it boils down to why the Deltic board needed to raise so much cash ‘just in case’ and then awarded themselves huge salaries/bonuses and even hired a CFO to count the petty cash?
I would criticise them for leading investors up the garden path telling the market we are entering a operational phase and by changing the name of the company to illustrate that
Absolute rubbish imo!!
j1osf
On timing it all depends on infrastructure - in Deltic's case Selene depends on the Clipper South demand, Pensacola, if it has condensate like in Oranje Nassau's 42/4 discovery, will be timed as a candidate for the Breagh system to Teeside which is geared for gas/liquid separation onshore. As Fairdealer points out it would be helpful if DELT illustrated all this and kept us informed.
Fairdealer/Longlad
The ‘two city geniuses’ have done extremely well in the city with paper deals, but the track record at RBD is mixed with an interesting asset collection. It looks to me like they’ve met some even smarter ‘geological geniuses’ and been tempted to pay for risky projects.
Also, the real 'City' is a small place and no doubt Lord Spencer would have canvassed opinion from his wide circle of friends - not least Algy Cluff!
Exploration
As usual you write with clarity. We tend to agree on most things, and like some you included there is frustration in not being kept better informed by the BOD . As you rightly confirm the raising of funds at such an early time, the award of pay increases and the appointment of a CFO, has added to a belief the Executive act in a self serving manner.
Patience is always a necessity with these type of investments .
The RBD approach was cheeky to say the least and although I do'nt follow events at West Newton that closely, do know they are up against Environmental issues which may frustrate their progress.
Exploration
Thanks for that.
How far in advance do they work on this 'just in time basis' If they drill and don't find anything?
j1osf
Money in the ground - fair question. None of DELT's prospects is big enough to justify a stand-alone project + export pipeline, so the strategy has always been to find new gas to fill ullage in the existing export systems/terminals on a 'just in time' basis. The idea is for companies to co-operate and only invest when needed. Sure, DELT/Shell could drill now, but that money may have better use elsewhere at the moment.
Right now, there will be commercial analysts at Shell, Ineos, Spirit, Oranje Nassau and Neptune bearing away trying to maximise value for the whole area This approach is partly orchestrated by OGA and makes sense.
Exploration
Why would drilling in the short term leave money in the ground?
£13.2m at the end of March.
Exploration
Excellent post, just two things;
‘ Deltic have made this clear, but memories are short and they need to keep reminding investors of how they fit into the ‘big picture’ of UK’s future gas supply.’.....IMO they should be out there keeping the market informed.....of what?....surely they could conjure up a narrative with soft targets, it could keep interest/ liquidity in the share, which maybe would have prevented or stemmed the decline in the share price.
‘ Luckily for Deltic, it was easy to bat away RVD’s opportunistic proposal. But if RBD’s well test at West Newton is a success then I expect they’ll take another run.’. What’s your thoughts on the low price bid from RBD? The two guys running the show there are heralded as geniuses, I can’t get my head around them low balling as they did, unless they had Spencer on board, which evidently they don’t.
Fairdealer
Deltic may be waiting for Shell, but let’s remember Shell is waiting for the gas market - to keep its pipelines and shore terminals working at maximum efficiency. Progress is driven by infrastructure which was always CLNR/DELT’s plan - so everything is still going according to plan. Yes, watching paint dry - with a 5 year strategic time span.
Deltic have made this clear, but memories are short and they need to keep reminding investors of how they fit into the ‘big picture’ of UK’s future gas supply.
There is no need to drill in the short term and leave money in the ground. Better to be able to ‘expect the unexpected’ and minimise costs.
If any criticism is due, it boils down to why the Deltic board needed to raise so much cash ‘just in case’ and then awarded themselves huge salaries/bonuses and even hired a CFO to count the petty cash?
Luckily for Deltic, it was easy to bat away RVD’s opportunistic proposal. But if RBD’s well test at West Newton is a success then I expect they’ll take another run.
Have Deltic got enough money to do anything other than wait for shell ?.
Hi FD
I am not saying they are better I am saying they appear proactive
Our lot are not proactive but appear to be sitting tight waiting for Shell
OK, joking aside, I know Delt seem to be lacking go atm, to be fair, their hands are tied re Shell, doesn't mean they should go around throwing money at projects just because they need the money (ie. Rbd)...If Delt decide to sit quite for now, then so be it, I'm sure the large holders will have some say as to what they expect from the company re monies and I'm sure if an opportunity arises, then we will move.gla
Mike we have shared concerns regarding the way this company is being managed. I have made my intentions known.
If you believe RBD is so much better why not buy in there?
My point is RBD are at least trying and are communicating
Our lot seem happy to sit and wait for Shell and run down the money
I don’t think am being unfair that is what is happening here
Isthisawinner
Whilst it would be nice to see our lot do something/anything, past performance doesn’t inspire confidence. You might be overestimating their ambitions.
The RBD update didn’t get much traction.
Perhaps the market wants to see clarity on funding.
Mike, the only problem I see with your post is it lacks any true grit. You come across as a follower and as the bod of Rbd whistle, you follow, all the way to a major fundraising and collapse in the sp. Whereas Delt atm are not whistling for people to follow, they are too busy wondering where to spend all the cash they have....rumour has it, that they may take part in Rbd next fundraise, buying a chunk at less than half what the sp is now.
While Delta Energy continues to sit and do nothing RBD gets on with it
I would rather have a small part of a proactive organisation than a larger part of a dead dormant duck