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You are wrong
$40 million is the deal. Considering the depressed so this is fantastic. Pensacola still to come
Have i got this right - or am i missing something ? Need some further education from the chat group.
Delt have sold 25% of their stake for $20million to cover drill costs ........ i get that even with 70% geological success there is always possibility that it will be dry no not commercially viable but given the potential upside. Is 25% for $20million a massively cheap undersell given the valuation of the delt Pensocola holding at $200million..... Selene if the numbers are right will be bigger .
Doesnt seem that good a deal to me - or as i said have i got that wrong....
I dont think they would have released the RNS without Shells approval. Would be shooting themselves in the foot otherwise
Can't see Shell not being happy that an experienced producer (with $$$$) coming on board... reduces their risk. They might be a bit pi** d if they have been trying to bully Delt into a lesser deal though ..
Selene costs covered ... Lets see what comes of a deal for Pensacola
Initially not sure as a shareholder how to react to this…and how will shell react? Their is a slight disappointment that a deal has not been done with shell themselves, rather than a 3rd party.
Clearly the market seems to like it….so I guess I should too, fingers crossed as to what happens next……gla
News/ GLALTH
But confused...why would anybody sell at 28.5p???
I would personally have preferred a big fundraise (would retain even more future value)...but there is no appetite for that, clearly!
In the context of doing a farm down, this is very very good news.
Hopefully all the doubters will now accept the Delt team is doing what they say they will do!! Delivering.
Agreed very smart move indeed, think that DELT will do very well this year. DYOR
A good Move !
Interesting move!
“Deltic Energy Plc, the AIM-quoted natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern North Sea, is pleased to announce that it has entered into an agreement in respect of the farm-out of a 25% interest in Licence P2437, containing the Selene Prospect, to Dana Petroleum (E&P) Limited ("Dana"). This transaction, in combination with the existing Shell UK Ltd ("Shell") carry, results in Deltic retaining a 25% non-operated interest in Licence P2437 and having no exposure to 2024 drilling and testing costs up to a cap in excess of current success case well cost estimates provided by the Operator.”
FD, I fundamentally agree. Wrt the sp, Cookoo is 100% right, of course. It's super low. It's also a huge opportunity, so I have been reducing my average significantly over the past months. Most holder's actually just hold though (given the thin trade) and fear of dilution/having no funds is clearly hampering the sp!
About fundraise: I do not think a £20mill express book build is possible. To the best of my recollection, the current, adopted resolutions don't allow for nowhere near this amount. Hence a special meeting would have to be notified etc. A process. I would strongly object to a fundraise not offering each shareholder their fair share based on current holding. Only out of principle. The past fundraises were broadly speaking done at the market rate (and even fell afterwards), so any shareholder could merely have picked up their extra shares from the market in order to keep their % holding. The best thing is to keep enough cash ready, equal to the value of our current holdings, should this happen. I cannot see this happen to be really honest.
Shell is clearly confident that Delt will have funds to pay expenses already being incurred. It's entirely possible Shell indeed is at the negotiating table as we speak!!
DP you may recall I questioned the unclear cost implications to Delt, back in Mid January. The view seems to relie on moneterisation, which if so needs to be fleshed out and disclosed quickly. The drills are due June/July, so little time to faff about.. If nothing is agreed by the end of March, it is highly likely another express book build will be made as previous. Those of us who remember previous fund raises, know who will get the Lion's share of the enlarged equity.
As I see it Shell is driving the Bus, Delt have little choice but comply, finance and all.
I was happy to see Shell onboard 3 or so years ago, but not happy to see existing SH's investment diluted.
Let's hope the latter suggested fund raise does not happen and that some form of moneterisation happens that preserves existing Investors value.
JackD, I am re-posting an entry I made on 17 Jan, I don't think we have received any further info re costs since then. Hope that helps. Always happy to hear other people's estimates/thoughts.
"2 drills 2024:
Selene, drill Q3 2024, Delt needs to pay 25% of drilling costs up to $25million, above that in line with share of rights (50%). Assuming high end of stated drill cost range, $40 million, then cost to Delt is $13.75 million.
Pensacola, drill Q4 2024, I presume they will pay fair share of full costs. I don't recall seeing a drill cost budget range for Pensacola, but we know a positive investment decision was made late last year including an agreed budget. However, again, assuming the high end of similar range as for Selene, then Delt will pay 30% of $40 million, hence cost to Delt is $12 million.
In round numbers, overall GBP 20 million. They have a bit of cash in the bank, but I have assumed it will mainly cover operating costs for the next couple of years. The declared strategy is to cover this funding gap through monetisation/farm down.
The assets are solid and have actually improved over time. Funding to be sorted out though, but if and when, then this will fly back to where it should be. In reality we are in limbo with no tangible news and thin trading volumes.
There is a corporate presentation on the Delt website + also see recent RNS's for supporting evidence."
Cookoo, not everyone is down as much as you!!
"We are moving on nicely" get a grip ffs ,this hasnt got anywhere near the last consolidation yet in old money its 1.3p
Dr P
Did you have a breakdown of your estimated £20M cost to Deltic for Pensacola and Selene ?
I see we are squeezing in before TAQA.
TAQA has agreed to take the heavy-duty harsh environment jackup VALARIS 123 on a six-well contract for the Porthos Carbon Capture and Storage (CCS) project in the Dutch North Sea. The program could cover up to 10 wells and would take about 300 days to complete following the anticipated start in fourth-quarter 2024.
Operating day rate is $142,500, increasing to $152,500/d from Jan. 1, 2025, and $162,500/d from Jan. 1, 2026.
https://www.offshore-mag.com/drilling-completion/article/14301065/valaris-negotiates-drilling-contracts-extensions-for-multiple-floaters-jackups
I have no idea of the upfront deposits for Rigs but this announcement must mean that Deltic are confident of securing funding, whether that is from Debt, Placing or Farm down route.
Interesting times
Jack
We are moving on nicely , well done Shell
Gasatapeep, this platform showing a volume of 299,529 shares, which seems to match the feed on the London Stock Exchange. So in round numbers a daily value of £80k? Sorry, not trying to be funny, but merely trying to learn if I am missing something?!
If the figure of 299,529 indeed is correct, then that's wafer thin trading, approx. 0.3% of shares outstanding.
Obviously no corruption, it's illegal anyway, at the small trading volumes but hopefully a glimmer of hope of a very slight favourable shift. 🤞 Everyone's allowed a glimmer of optimism I'd hope ❤️
Add blues plus the mysterious unknowns.
Out of interest, gasatapeep, where did you see this volume?
A few semi decent trades today, but real momentum still not here, as far as I can see?
£250,000 worth of buys and a tiny rise? Who are you kidd8ng corrupt AIM.
It might be just me but it seems like there's been an increasing number of larger value buys today...... obviously this could be anything but hopefully something positive coming.......I'm aware timing is just speculative but noise could be getting out that we are in a strong position. Would be nice to see the share price rising.
Few nice big buys there...