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Don't worry about the 35% EPL. Kier and his Communist Party is going to close the North Sea O&G industry down as soon as he gets the keys to 10 Downing Street. Maybe he has shares in the Saudi Arabian O&G industry, of course they don't pay any Tax or worry about the Environment so long as we are dumb enough to keep buying O&G from a bunch of Authoritarian Dictators that cut people's hands off. Oh to live in a country like the UK where politicians only do business with Democratic countries like Saudi Arabia, Russia, China and the other Gulf States. It's surprising how civil liberties drop off your list of principles when some rich oil Sheikh rolls out a red carpet for you and puts you up in a 7 star hotel for free. 🤣
I have been invested in Cluff/Deltic for 6 years. It's been a rocky ride for sure, but I have invested in a tiny company that has had to raise funds the best they could, and they have had to react when needed when things or partners have let them down. As things stand they are OK regarding Selene which looks very promising and is sitting below existing Shell pipelines to their Bacton gas terminal. So that gives me comfort. Pensacola would be a big loss, but I am hopeful that some kind of deal can be done. If not, then that's obviously more than disappointing! But Selene was always the main reason why Shell got involved back in 2019 and still looks very exciting, so even if the worst happens regarding Pensacola, all is most definitely not lost! Glass half full as ever!!!
Rishi Sunak introduced the 25% Energy Profits Levy in May 2022, applicable to all companies producing oil and gas in the UK or on the UK Continental Shelf.
Jeremy Hunt increased the levy to 35% in January 2023.
In the 2024 Budget it was announced it would remain in place until March 2029.
If you havnt worked it out for yourself, DELTIC and any partner(s) would be effected by this Levy.
This is a high risk company, getting worse by the month.
DrPatience "David85, I am up to date regarding the Capricorn JV licenses. The point being Delt has the work done. they get a chance to reapply"
But we don't have the licenses anymore, also no guarantee we will be re-granted them, or that DELTIC will re-apply.
DELTIC previously re-applied for a license it lost, and was refused.
This company is useless, its gone from having 6+ prospective targets, to 2, and in two weeks time likely down to 1 left.
If shell don't hit gas on the drill, any chance of return for long term holders is lost forever.
Olearney ,yes of course we know what risk is , but this lot are just taking the m, i need 90p+ to get to breakeven as this has been a lifestyle as clnr and deltic since 2014 ,and prob before if i had looked but rose tinted etc got me ,it aint worth selling what i have left so if it comes good i will take the missus to spoons ,i know how to treat a gal
Cuckoo
I know nothing about investing but you take a risk on your own merit.
I bought a Zimb goldminer then they said consolidation so bought some more.
Price has at least quadrupled but off its highs.
Fingers burnt but hopefully you are still invested here for the future.
Just a thought, would it not be a coup if BP stepped in?
I am a half ship empty rather than a half ship full of water.
GLA
I feel as annoyed as anyone but i cant believe the major shareholders will let this slide etc. Time will tell, maybe now is a great time to average down ?
Djm your not wrong ,just join the club , i have been trying to warn peeps since i got my fingers burnt in 2014 , its a bit like scams if it looks to good to be true etc ,we have been sacrificed by the bod who are fine and dandy and couldnt give a hoot
Feel like I've been led down the path on this one from 26p upto 38p things going well and 1st farm out complete no mention that the 2nd farmout may prove difficult not Dana will probaly want selene resukts before taking on the other deal.
Pipersand, I agree, politically nothing has really changed since the Selene deal. It is odd. Maybe they got greedy and the interested parties walked? Or they have some negotiations but they are moving too slowly and the RNS is a warning shot?
Point taken Glide, however the wording together as "significant level" I think most people would interpret as a number of parties being interested - it sounded highly positive, in total contrast to the last RNS. Nothing much politically or in the financial world has changed since January to make the excuse for such a change in tone of language. To me, there are too many excuses being made for what now appears to be management incompetence. I will still give them the benefit of the doubt until we know for sure what the outcome is. It is make or break time, 13 working days to salvage some trust and confidence.
David85, I am up to date regarding the Capricorn JV licenses. The point being Delt has the work done. If, and that's a big if as Labour most likely will get in power, they get a chance to reapply, they would be well positioned. I have written it off though.
If you think exploration has a success rate of 100%...then that is an illusion. I would have been happy with "just" Selene and Pensacola. That would have been a very good result.
Don't get me wrong, I am not happy right now, but I try to leave the anger aside and make informed decisions.
Its coming home... not really, dont waste yer fooking time. Always a balls up
@Dr Patience
Re "the Delt team can pick good sites in my view."
Around 65% of the Sites/Blocks/Licences Deltic have picked - which were also the basis for the previous higher SharePrice - have been lost or relinquished. As with Pensacola illustrates, its pointless having good sites if the BOD dont have the capability to put them to use.
Re "They (Delt) have effectively inherited $10 million worth of analysis work which could be reused, unless the NS is killed off by the politicians. "
Sorry to inform you but you're not up to date with affairs, There is no inherited work as DELTIC lost those licenses ages ago...
And they also lost multiple licenses pertaining to a different area many numerous months before that.
David85,
Only been in for a couple of years. I have a science background related to offshore engineering (but not specifically exploration/geology) and done a fair bit of research, including looking at material produced by Deltic for the Geological Society (name may be slightly inaccurate), broker reports, etc. I am not going to go into more detail than that, but the Delt team can pick good sites in my view. I have in particular been happy with how Selene and Pensacola have been tied up with serious partners and money, except for the recent RNS obviously. I am very unhappy with the current Pensacola situation and will wait until we have the outcome before passing comments on the management team's competence.
Funny how no one complained about anything 2 weeks ago!?
The Capricorn exit is not Delt's fault. They (Delt) have effectively inherited $10 million worth of analysis work which could be reused, unless the NS is killed off by the politicians.
My general investment advice to myself and others is a follows: if you don't like and/or trust the CEO&team, just SELL! As simple as that.
I am not trying to ramp, but in my books Selene is worth more than the current mcap, hence if Pensacola is lost and the share price drops to say 10p, then I feel the risk/reward ratio is very good. It's always high risk and your money can also be lost. I don't think anyone here makes buying decisions based on views expressed on this board, but I do enjoy listening to other people, even if I don't always agree. Just deramp if you want, it's actually helpful if it works!!
Right now we are all in limbo and just speculating about the rationale and impact of the recent RNS regarding Pensacola. We have incomplete information and we will probably not know the full story for a while.
@pipersand significant could mean important. Important can mean good news, or bad news. Words are released by companies subject to legal scrutiny.
"but that would still be a hell of a lot better than giving back the license and seeing 10-12p. If they lose Penascola I think this company becomes uninvestable" it does not matter a jot when your pension is topped up to the brim ,bonuses paid after pen came in , bod laughing all the way to the leeds ,smoke and mirrors , lifestyle co
Bottom line, the outcome here is not going to be anywhere near what people had hoped. So David you are correct in saying that Swindells has a lot to answer for.
To my mind the best outcome is they raise capital with a big fish and our biggest shareholders, and give PIs a chance to participate. If they double the amount of shares in issue but maintain a full 30% holding it will be a big win. Likewise 66% dilution and 20% ownership. Yes the £1 levels will need to be adjusted to 50-60p, but that would still be a hell of a lot better than giving back the license and seeing 10-12p. If they lose Penascola I think this company becomes uninvestable. They will have one field with near term upside. And it would still be a coin flip for them to find something economic. And you'd still have incompetent mgt.
Without a decent stake in Penascola this isn't going anywhere. Mgt need to bite hard on the bullet, stop f@cking about, and get a raise done. Bunch of f@cking clowns to let it get to this point and then turn around and blame the government. I thought a raise at 16p was a likely outcome, but the more this drags on the lower it could get.
Don't majors like Shell and BP offer loans to smaller players / partners?
It is said that the English Surname originates from a persons occupation - Graham Swindell-ing people out of their money?
Be weary of the shameful investors who ramp this disgraceful company.
For those not in the know, this company has around 16 days to announce a farm-out partner, or they lose yet ANOTHER license.
They already lost 5 last year when there recent partner Capricorn energy completely abandoned all UK projects focusing on greece.
And prior to these five, relinquished another 2.
These licenses matter as they were used as a basis to attract investment... Once monies from investors was secured, licenses were void.
Dr Patience, you say you "quite like" what deltic stands for and has achieved.
Please can you elaborate what that actually is? With proof, not just crappy rampy statements like "its gone lower, therefore a topup opportunity"
Also, its irrelevant what they stand for, what matters is the licenses are put to use by partnering companies, eventually turning them into producing assets.
Your statement "recent sentiments have been severely dented by useless politicians."
This is a terrible attempt to pass all the blame onto politicians, when it is the DELTIC BOD who are responsible for the company. All other UK companies are held accountable by the same terms, so there is no excuses for DELTIC
As for this being "recent sentiment" - that's another falsity, I have been here since Algy Cluff was the main guy, There is a noticeable pattern of poor performance from DELTIC/CLNR
I quote my recent post for others to see, that despite "recent sentiment" Our recent partner Capricorn completely jumped ship and DELTIC lost all associated licenses... These very licenses where the basis for funding and positivity for YEARS on this forum - Completely gone, and now we are about to lose Pensacola due to no farm out partner being interested.
Last year Capricorn Energy backed out of the Joint Venture with Deltic after spending $10m on technical work, which resulted in Deltic losing four Licences, P2560, P2561, P2562, P2567
Prior to this the BOD and forum users advocated the huge potential and success of a partner. Yet nothing manifested, in fact it was worse than nothing, as investors paid the BODS salaries via placings.
Quote from Deltic RNS July 2023
https://www.lse.co.uk/rns/DELT/update-on-capricorn-energy-jv-licences-8cbwrh124v5fon2.html
"once Deltic has been re-appointed as Administrator of these licenses, Deltic intends to request an extension of the current licence terms from the North Sea Transition Authority ("NSTA")."
Despite the Directors of Deltic making optimistic statements, the NSTA ruled against extending, and the licenses were lost... All those years of Optimistic forums posts and investment...
We are now in a even worse position with Pensacola, as we don't even have a farm-out partner to lose, and only 17 days left to secure one.
I have said for years ,this is a lifestyle co , they could not give ahoot about lti ,share issue after share issue,consolidation garbage so it could sink further again, ,and all i ever get is shot down with quips of being a deramper ,why not clear off and do one , this has been totally mismanaged beyond doubt what more proof do you need
Fairdealer20
That’s a stark observation letting a potential US$ 200M vanish for the sake of £15M. At least a 10 fold return all other things being equal.
There is plenty of Corporate Finance experience on the BOD plus the 2 x major shareholders.
They must have had FO interest as previously noted but the terms on offer must mean that there is more perceived value in handing the license back.
I don’t believe the Capital Markets have dried up so the decision must have been considered that the economics of saving Pensacola was not worth diluting Selene but that’s just as odd.
They mention non traditional funding so they must have already looked at debt finance.
As a long shot reversing into a SPV or cash shell must have been discounted due to the time to execute.
As we have all said, Pensacola was progressing on all fronts so to say at the last minute that they don’t have the finance is just a bizarre outcome for seasoned Corporate Finance professionals.
The clock is ticking but I feel if Pensacola is handed back there will be other repercussions.
Jack
Alongside its ongoing farm out process, Deltic will continue to consider alternative sources of capital and non-traditional funding structures to mitigate costs and/or secure its equity position in the Pensacola well. However, there is no guarantee that such capital will be available or available on acceptable terms.
Michael Spencer and Richard Sneller are no fools. Remember Lord Spencer was ( may still be) part of Government) knows far more about O&G protocols than anyone here. Although a Billionaire, is he likely to see a huge loss here ( his holding is around 18%)?
History here always gives an element of protection to the Major Holders. Richard Sneller is a successful Finance Professional who only invested here relatively recent ( I think 4 years ago)
Is it concievable these 2 will allow their investments to be considerably reduced? I think not!
Is it beleivable an asset worth $200m is allowed to vanish for the sake of £15m?
It can only be hoped Graham Swindells is clever enough in this game of poker. Otherwise he will be left with a hell of lot of egg on his face.
Guys, this was always going to happen. The news on what they've been up to won;t be landing in the next week, to even fortnight. They'#ll provide an update on the last day of the month that will most likely mention an extension on them being able to raise the funds or finalise a f/o. The only reason something will happen before-hand is because the major shareholders (or perhaps another) have agreed to stump up £5-10m.
It is a game of poker here. If they can find another player who is willing to cough up £5m for 20% of the company, then other major holders will need to find funds to maintain their ownership. If this happens there will be another 65% more shares printed for around £8m, but there's a good chance they can hold onto 20% of the field. In for a penny, in for a pound position for the other holders because if they don;t cough up they lose company ownership, and the company loses more Penascola ownership.
I'll be surprised if these !diots keep going down the f/o route. To me it is dead and buried and they should have known this long ago and refocused on raising capital. I'd like to see them get another decent company on the shareholder roster. Not sure why Dana wouldn't go in for £5m alone. They can get more exposure to Selene, and the benefits of Penascola. DELT gets fully bought in partner, and the other major shareholders either cough up or they lose ownership. This would be a good outcome imo (providing Retail get a chance to participate). Either way folks need to recognise the sp could keep dipping with each day / week to 11p based on an assumption that Penascola is dead and buried. The longer this goes on the worse it will be to raise capital. GLA