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Longlad I have been relatively quiet on this board these last several weeks, basically having vented my spleen on the activities or rather inactivities of our BOD. I did speak with Camarco some months ago, afraid to say the words were fine but subsequent actions have not materialised. I get the feeling we have an inactive Board who have lost motivation, in a word or 2, don't know what to do except sit in the Office or home, twiddling their thumbs.
How the position of CFO was justified is a mystery. Is she just counting the reciepts and payments on an abacus? One would hope the £13+m at bank is being utlised to achieve some income/capital growth, but in truth I have doubts.
As already stated am agast at how Major Holders are supportive of the BOD. Is it a job for Pals or do Major holders know something we do not?
This board ought to be ashamed
Where is even a single sign of progress
Why not give them a call and ask them
Telephone: +44 (0)20 7887 2630Email: ir@delticenergy.com
hi fairdealer,
As a holder in RBD I am sure your view of the bid is not far off the truth. That and a prospect close to Rathlin's. Our two lads, S&S, are very canny. DEL holders would be looked after by an active management, but is the bid cheeky? You bet!!
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
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.
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.
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
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?
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
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
Have Deltic got enough money to do anything other than wait for shell ?.
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.
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.
£13.2m at the end of March.
Exploration
Why would drilling in the short term leave money in the ground?
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
Thanks for that.
How far in advance do they work on this 'just in time basis' If they drill and don't find anything?
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.
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!
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.
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!!
I don’t know what annoys me most
The ridiculous unnecessary placing
The wages
The bonus
The appointment of the CFO
The name change
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!