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A few requests from disillusioned shareholders, e-mailed to Deltic, has a chance of achieving anything meaningful that hovers around zero. Deltic will not be involved in delicate negotiations with regard to the FO of Pensacola one minute, and then give away the essentials of its negotiating stance to a few disgruntled shareholders the next!
This is not going to happen! It is the application of their business strategy, priorities and objectives, in a complex, pressurised & highly competitive market-place. Otherwise they would be in danger of involving themselves in "a camel is a horse designed by a committee" scenario!
May will probably see the objectives of the RNS become clearer, but I don't think Deltic will reach a point at any time/soon where they can give shareholders a detailed explanation of the rationale, true objectives and true motivations behind the RNS!
I've emailed Deltic and suggested that a shareholder update meeting would be helpful so questions can be answered. I'm firstly surprised by the material change in tone of the RNS information in the last 3 months, moving from 'significant interest' on 19th Jan with $200M valuation to a potential loss of licence on the 30th April with nothing in-between, even in the annual results on the 17th April (13 days earlier) no update to the 'significant interest' position of the 19th Jan was given. I'd encourage others to also request a shareholder update meeting so questions about the current options be progressed can be answered as it does feel like there must be alternatives rather than zero interest in a potentially $200M asset that Shell feels is still worth drilling simply being lost at $0 value. There's also the question over how they are safeguarding Selene from ending up in a similar situation.
Yes I'm also in shock at this turn of events and hope it's not just small shareholders being shafted, but it's business and as a shareholder I principally want to know what's going on rather than being left to guess...like why a fundraise isn't being considered, even at a heavily discounted price.
A shareholder Q&A (in the very near future) would help close the information gaps that the RNS has created, please ask Deltic to make this happen.
I'm not sure what's going on either but I feel this is a bluff by the Co to flush out a strategic investor or perhaps a suitor to take over the whole co. The sums involved are peanuts to a major or even mid player. Time will tell but I'm not selling that's for sure.
GLA
CEOAdam, absolutely correct. Some of us were saying weeks ago a Fund raise would be required and were content to see it happen. Given that and the way Capital markets are awash with money, it should be easy particularly as the asset we share has been declared the biggest Gas discovery in UKNS in decades.
It makes NO sense, one wonders what game Swindells and the Board are playing??
ROT1
After the Selena Farm out to Dana and recovery of back costs the Pensacola RNS reads like a no brainer:
- Pensacola Discovery on Licence P2252
- operational planning for the Pensacola appraisal well has continued to progress according to plan.
- long lead items have been ordered
- the geophysical site survey over the proposed well location has been completed
- the final geotechnical site survey is scheduled to take place in May/June 2024.
- The rig contract was entered into in February which secured the Valaris 123 heavy duty jack-up drilling unit
- Pensacola well due to be drilled immediately following completion of Selene operations.
- Pensacola well remains on track to be drilled in Q4 2024
Until you get to the Farm out and capital markets sections.
Incredible that Deltic are poised to hand the licence back ………….or not as the case may be.
Jack
It F-ckin stinks to be honest, i just don't get that RNS from any angle, if this doesn't play out to the share holder's benefit is there any legal recourse to Swindell and the over enthusiastic approach to Pensacola ?
There are only 93 million shares in issue. At 38p I am sure they could have issued 45million shares and raised £17million to stay in bed with Shell. I am certain this would have been raised easily.
This would only have a total of 138 million shares.
It's not billions of shares, like some others. I don't get it.
Why wouldn't management do it?
I have a feeling in my water that there is more to this than we currently know. Although it has to be said that I am ever the optimist, time will tell if my eternal optimism is misplaced. I bl00dy hope not fingers crossed!!!
Thanks SE! Got the jist of it from the broker note. Surprised they are struggling with 15m tbh, especially given the scope for return.
CEOAdam Re: "This wasn't from the last RNS. Swindells said they couldn't fund it. So witch is correct?"
The numbers are of historic nature; relates to the last Pensacola drill. The latest RNS is just that, the latest position. They have a bit of cash to run the business for at least one year, as far as I can work out, but need to fund their fair share of the next Pensacola drill, this Q4. 30% of $50-60 million, I guess.
PS, I ain't exactly a knowledgeable poster ;-)
Gordon, Shell haven't given up on Pensacola, the problem is that Deltic have to find someone (or something) to fund the circa £15M Deltic need to pay their way towards the drilling costs! All very frustrating as the potential benefits to Deltic are probably 10x that amount. This situation and the RNS released earlier this week is obviously a big worry, but I am hoping it's Deltic's way of managing expectations in that if they can do any sort of deal then after that awful RNS we will be dancing in the aisles, as our expectations as shareholders have suddenly changed in a negative way.
This wasn't from the last RNS. Swindells said they couldn't fund it. So witch is correct?
David - """Cash position of £9.1 million at 30 June 2023 (31 December 2022: £20.4 million), with a net cash outflow for the period of £11.3 million (H1 2022: £2.5 million). The first half of 2023 saw significant planned investment and use of capital to complete the drilling of the Pensacola discovery."""
Can a knowledgeable poster give me some background on why SHELL won’t back the second project? If it is one of the more prolific finds in the North Sea surely the political backdrop should have limited impact on a jv? A lot can change in a few months, why can’t they get an agreement lined up and if it does become unviable then they can revisit?
Cash position of £9.1 million at 30 June 2023 (31 December 2022: £20.4 million), with a net cash outflow for the period of £11.3 million (H1 2022: £2.5 million). The first half of 2023 saw significant planned investment and use of capital to complete the drilling of the Pensacola discovery.
D6576, I love your optimism, but this will only fly in two scenarios:
1) Pensacola is saved. First jump. Pensacola and Selene drills go well, second/third jumps.
2) Pensacola is lost and the Selene drill goes well, first jump; until then a random muddle in the current range, possibly lower due to the psychological impact of the monumental failure of the Delt management team (their last one no doubt), even though a loss of Pensacola is already baked in.
Never seen a jump like that on a UT
Milestone achievement.This will fly next week.💪💪💪💪👀👀💯💯💯
Selene has farmed out but remains 30% I think. It is a great site being low risk with Shell picking up some of the partnership. From a broker note its worth about 89p derisked! Obviously they are quite rampy but at 19p this is a no brainier!!!
Strong buy now from this low.
Licence worth in billions.
What is Selene worth to DELT?
Price keeps falling
Getafgrip, correct, but I cannot see the board (and large shareholders such as Spencer and Sneller) accepting a low ball offer. Then it's better to just give up Pensacola and take it from there.