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Just as you though Sunak couldn't make anymore intentional "mistakes" to give the upcoming election to Labour, he goes and announces a plan to force people to partake in free work.
FD20, in a sense, the OneDyas deal is similar to a farm out deal (just swapped rights for services instead of cash, fully or partially). So, yes, why not?
Presumably the Delt team is actively exploring all options, but it may also be a (slightly dangerous) game of poker!!
It is possible the large shareholders are playing a similar game of poker, in which they also might end up losing big - just like everybody else - if Pensacola is lost.
Dyas, the drilling contractor, were "gifted" 5% of Shell's share, presumably to offset the drill costs.
Why have Deltic done something similiar?
There are numerous funding mechanisms, which should have been explored. Maybe major holders do not agree because of dilution, which if correct, is rather rich considering they (MS & RS) have increased their share at the expense of ordinary PI's, in previous raises.
Ekimp,
I personally think they are just saying they will pursue all options....f/o, equity and loans. Could be a combination of those or hybrid solutions like convertible loans.
Pure loans are unlikely in my view, as you have nothing providing security like real assets or predictable revenue streams. The only exception would be a loan solution provided by one of the JV partners, but I somehow feel it's not so likely.
I really think it boils down to 3 solutions:
- Full equity raise £15 million (seems no appetite for that as alluded to in the RNS)
- Partial f/o and partial equity raise (may be possible and a good outcome potentially as the fundraise would correct share price after the raise)
- Full f/o (may still be possible, but clearly difficult)
If any of the solutions cannot be found or are attached with unfavourable terms, then I think the licence will be handed over.
I think we will get an RNS soon saying they have obtained an extension from Shell and it's work in progress. Probably several more weeks until we have clarity. I will not be surprised if the share price keeps falling until then. Good old fashioned panic and fear plus some people just trying to average down by selling and buying back later, in the hope of lower sp. Fair enough, everybody makes their own assessment!
What do other shareholders know about different funding structures as alluded to in the rns?
Is this a possible way forward?
Look at his comments on other companies. 100% negative.
I am now wondering if he is a Russian paid troll, being paid to undermine parts of the UK market. With elections coming, he will no doubt be very busy!!!!
Thank God for the filter!!!
David85: nothing useful to say, just repeating the same drivel over and over again.
Deranged, troubled, bitter boy scout investor or just trying be a smart deramper to buy low?! In any case, completely uninspiring with no substance or talent, just reminded me we have a filter!!
-Lost Farm In partner Capricorn who predicted correct the terrible horizon of the UK Oil & Gas sector(Capricorn Abandoned all UK Operations to work solely on Greece)
-Do not produce any revenue, thus rely on shareholders and other companies to carry them
-Lost 5 Licenses due to lack of interest from other companies.
-Needs £15million in order to keep Pensacola, or will lose a 6th license(Should be announced within 5 days)
-Likely have a Labour government to deal with, who are Anti UK Oil & Gas(Announced Early July 2024)
-Have a board of directors who blame political environment rather than there lack of ability to attract partners
-Share price crashed >65% in
David
I acknowledge what you are saying but I would rather wait for the update and then decide
SharePrice going down mate and when it does I will ask you next week if you have recollection of our discussion today.
You will probably deny it like the other dishonest posters here.
DELTICS in a very troubled situation.
-Share price crashed 65% in
Hi David
I wish I did know which direction share prices were going as I would be a very wealthy man
Ekimp, What Rubbish you talk.
I am giving people the full picture here, and it happens to be a negative one.
Shareprice has crashed over 65% in the last month, And we have likely got more bad news within 5 days to come...
What do you expect the shareprice to do? Go up? Its going down and you know it.
Deltic has warned us that there may be trouble ahead my hope is they can at least salvage something from what has been a disappointing. few weeks
Something is better than nothing for sure
Hi David
What you are saying is no better than what BadA is saying
Best just sit tight and wait until the update
Notice how BadA is advising people to buy now... What a pathetic bottom feeder.
You only advise to buy because you are seeing the shareprice collapse and hope a few buys will raise it.
you are a gravely misinformed idiot.
Share price due to collapse to 6p when Deltic give everybody the bad news...
Cjm83, Good Honest post, I gave you a recommendation, Labour will ruin the Uk Oil & Gas Sector
Notice how the majority of posters here are dishonest, They ignore negatives truths and only recommend positive unfounded optimism
DrPatience, Deltic isnt worth anything mate because it doesn't produce, all we have are a few licences, and a board of directors who need 6 figures per year, possibly over £1m combined.
These salaries come from Raisings that usually retail investors are responsible for paying via share dilution.
We now have one prospect due to be drilled Q3/Q4 this year, if that fails, you do realize the SharePrice will be about 1.5p?
You've got to be completely stupid to even consider giving this company more of your hard earned just to keep your share ratio the same.
The companies lost 5 licences, a farm out parter, needs £15,000,000 or will lose another license, and now likely has a labour government to battle with.
But your concern is to buy more shares.
A fool and his money are soon parted.
From past experience I would say 31st
I wonder if we will get an Rns update on
Tuesday Morning the 28th of May as the stock
Market is closed over the long bank holiday
Weekend..
May
27
2024
Bank Holiday
The London Stock Exchange
is closed on Monday, May 27th
I totally agree SuperRoty! Did you write to the company?
If you discount you give all holders a strong incentive to take their allocation and those shares not taken, will be snapped up by other. Just imagine what the company is worth post that fundraise!!!
the latest labour flier says energy security, but my local mp says they are increasing the windfall tax and that security is not oil and gas uk, but being bought from abroad. so propping up someone else economy. so i fear the worst for uk exploration companies.
apart from ithaca energy who bought eni's assets to not make a profit ( they have production to fall back on) most are getting out, the chinese cnooc probably get to not pay the tax. this is bad news for deltic and others who have exploration in the uk.
unfortunately now it is a case of go abroad and sell to the uk for higher prices and minus the windfall tax. as some have mentioned a ****e show. saying that sometimes positive things happen , pensacola ( i drilled the first one) may still get partners as again in the uk you have to spend all your money basically don't make a profit so you investment is actually a discount verse the tax you would have paid. shame pensacola appraisal was not already drilled and now in election 6 weeks fever projects stop had two fall through this week already for me personally.
i would if you think long term say this is a buy the asset has not changed just potentially the time scales.
One interesting point to note mm’s seem happy buying at 13.25p
Ekimp, many thanks for taking the time to reply
Time to buy if you can. GLA