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I’m hoping the deal doesn’t go through. I looked at investing in Delt years ago but decided not to & just watch. Since then they are circa 80% down & only delivered the farmouts which are hanging by a thread. RBD did more in 6 months last year than DELT have in the 8 years they’ve been on the market.
Thanks GP. I am torn between:-
Wanting the JV partners to fully appraise the 3 prospects on the licence, with drills in Ellerby and Spring Hill (and possibly extending offshore into the unexplored zone if allowed to as you say like at Wytch Farm) in addition to the planned works on West Newton comprising drilling WNB-1 and WNB-2, and flow tests at WNA-2, WNB-1 and WNB-2,
OR just doing the basics - drill WNB-1 and test WNA-2 and then sell. Opinions are divided amongst shareholders from what I can make out.
It would be nice to know what the JV partners think. Maybe they'll sell only if WNB-1 is disappointing.
Hi Rubey. Thanks for the link to the OGA's map. The number of environmential "no go" areas in the offshore area next to WN came as a surprise to me. And that's leaving aside all the potential operational problems of acquiring seismic and then perhaps drilling in very shallow water. The dominant structural trend in the Southern North Sea is NW - SE. So if WN had an offshore extension, it would probably lie immediately to the east and / or south-east, rather than to the north-east. What might be of value to the WN partners, if there was anything of interest immediately offshore, is that it could be accessible from the extreme eastern part of the licence using highly deviated wells, as at Wytch Farm. However, it may well be that with the Spring Hill and Ellerby prospects still undrilled, they have enough on their plates for now.
Morning GP.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/867748/32nd_Round_SNS_AA_Consultation_Draft.pdf
Page 6 shows a map of licences in the area available. Which could have similarities to West Newton GP? Am I right in thinking they would be to the north east rather than east?
Hi Rubey. Who can tell what Deltic may have bid for in the 32nd Licensing Round. I believe that most of the open blocks are on offer, and Shell may have bid for blocks of their own choice too, which would be cheaper for them than farming-in to other people's blocks. I guess we'll just have to wait and see who gets what.
Shell deffo like something in the area. This licence is adjacent to Delts.
Simwell is pleased to announce that it has completed a farmout to Shell on its wholly owned licence P2332 in the UK Southern Gas Basin. Pursuant to this deal, which has been approved by OGA, Simwell's equity will be 30% and Shell's 70%, and Shell will assume operatorship of the licence. In August 2019, Shell completed the Bluewater 3D seismic survey, which extended approximately 160 km2 into P2332 and has fulfilled the work commitment for the next three years. The processing of this data has been completed and delivery of the final volume is imminent. The forward programme will be to evaluate the potential of the primary Zechstein and secondary Carboniferous targets, in order to reach a drilling decision prior to May 2023.
It seems to me Hambro have agreed to hold the SP where is is for S&S until the 12th, that was a opening of a long position from their 1 million sale yesterday by the looks of it.
With this Daft attempt at the DELT deal and Hambro off loading every day we are stuck here for a while yet. Starting to get a bit bored now!
Is there a licence in the Oil and Gas Authority’s 32nd Licensing Round that Deltic are likely to get that's of particular interest to Reabold?
Hi Harryshang. If S & S really want to do a deal with Deltic's investors, wouldn't it be even more sensible to provide a proper rationale when / if a formal offer is made, rather than when it's about to close. I must say that I've not seen much of a rationale so far, except for the cash, of course, although I suppose there may be some technical merits in the fullness of time, Shell permitting, of course.
My two penny worth, the deal is genuinely accretive and, it would obviate the 5mm emergency funding.
There is clearly consonance between RBD 11’s and Delt’s II’s. Should the deal close, I believe S&S will provide a clear rationale.
In short, the SP will increase.
Harry
Expecting an initial market sp pull back if it goes through, as it is seen as a shares for instant cash reward deal.
DELT are waiting for SHELL and not much else going on.
Longer term, consolidation with RBD and DELT may lead to an eventual sp increase.
Are Hambro still selling to City mates 1m at a time or is it a ploy to disguise their main unsettling intentions?
Better future bargains in Tunisian gas fields in my view, with distressed sellers around. (Ex BP targets).
C.
Well delt, in my opinion is not worth any more than their cash pile, the market value in delt shares is saying the same thing! the RBD offer at the time valued delt more than the market was, it was pitched just under cash value, I would be very disappointed if RBD 2nd offer was any more than delt cash value, so don't mind a slightly marginal higher offer! other than that, would rather watch the RBD share price rise the closer we get EWT and raise a little more from the market if needed.
I believe the day RBD stated their interest in DELT, RBD's share price went down 4%, and DELT's went up 7%. I think this is a pointer as to how the market would view a takeover - not great, UNLESS RBD showed at the time that they had excellent plans for using the £12m.
If the deal goes ahead is it likely to be well received by the market and result in an SP increase? Interested to hear views.
Take a look at the chat on DELT.
Some shareholders are sounding pretty disgruntled about the BoD antics of raising cash and giving themselves fat salaries.
Better bargains elsewhere in my opinion.
C.