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I'm not surprised tbh. The real - and only significant - issue is getting the funding sorted.
More prospects will be very good for those with an aspiration to hold long term!!
BadA, yes, I trust that's the case. It's my understanding that Shell got Block 29/3b and the one awarded to Delt is a less prospective, residual one, so they (Delt) will consider whether it's worth accepting.
Blocks 22/24f (part) & 22/25e (part) = low risk Dewar prospect, which is good.
Maybe some more to come in SNS!
DP - Never let anyone try to persuade you that the Information Super-Highway stretches as far as the Scottish Borders - it does not!
BadA one of the licenses is adjacent to a Shell license.
Looking at the awards, are one of our blocks awarded close to Shells ?
Interestinghttps://www.nstauthority.co.uk/media/hftpmq4w/33rd-licensing-round-tranche-2-awards-by-administrator.pdf
Getafgrip, yes indeed, same here, we must have been typing at the same time!
All good!
We can expect some more awards soon, as per the RNS
Good RNS.
DP - Thanks for the maps. And apologies as wires definitely crossed. There were no replies at all showing on LSE when I responded.
In the Scottish Borders today - Microsoft Bing was not working at all & Google was at best intermittent & could not access the NSTA site fully. Maybe something to do with using Shell Broadband which they have just sold to Octopus,
Looks like good news for Deltic anyway.
Links to maps etc here:
https://www.nstauthority.co.uk/regulatory-information/licensing-and-consents/licensing/
(Under 33rd round header)
Crossed wires, getafgrip! :-)
We got some, in Central? Apologies to all if I misread this; on my phone in a noisy place!!
Jam tomorrow stuff, but we got some awards in the 2nd trance!
https://www.nstauthority.co.uk/media/hftpmq4w/33rd-licensing-round-tranche-2-awards-by-administrator.pdf
All good, but I guess we are all waiting for the funding deals!!
North Sea Transition Authority’s (NSTA) 33rd licensing round. Winners are the usual suspects Shell, BP, Equinor etc, But further results possibly including Deltic Energy to come - the Southern North Sea licenses are awaiting environmental impact assessments:
https://www.nstauthority.co.uk/news-publications/24-licences-offered-in-second-tranche-of-33rd-oil-and-gas-licensing-round/
Quite; obviously not inside information but I think they are just being very prudent and cautious as I have seen such large reductions before with other companies.before a placement.
It seems one or more of their clients wanted to reduce (RNS says "DISCRETIONARY CLIENTS", so I assume that's what it is rather than one of their funds).
It's actually not a small reduction (-4.6%), so I guess they have been selling for some time (weeks or months) until dropping below the 5% threshold and the motivation may have nothing to do with Delt itself. For sure they do not have insider info. I agree with Rot1 that it has been holding pretty well despite this.
They may of course have taken their decisions before the recent updates, so they may also regret this now!!
I am not concerned about this. As always: when someone sells, someone also buys! What a great timing, I wish I had bought all my shares in the low twenties!!
Getafgrip, thanks and you may well be right!
I'm in no rush, so why not?
The market will be aware of this and someone has obviously bought them but who ? interesting times, SP held up could be a good sign. Well i hope so.
Hi! DP,
I must admit that I have simply not considered that Deltic would intend to remain an exploration only company. Particularly with the prospect of a consistent revenue flow coming in to sight. I just can't see any reason why they would not want to step up from being an exploration vehicle, to the next level, which is exploration/production. Otherwise what would they develop into - a bigger exploration company, a well capitalised exploration company or one with excess capital to distribute every so often!
I just see Deltic as pursuing the relative security of vertical integration, with a runway of significant projects building the company, with the necessity of farming out/borrowing, becoming less and less. They have the licences, expertise, and so far the luck to enable them to transform the company and step up. Why would an ambitious company like Deltic not grasp the opportunity.
Partial funding secure (need additional placing): 20p
Fully carried both drill (funding secured): 35p
No funds (placing): 15p
Also why would they put out the rns last thing on a Friday?
Does anyone have any thoughts on why they reduced their holdings by approximately 50% and what effect it might have?
End of week update. Apologies in advance for any ommissions or mistakes...
(all in pence)
Glide 40/5
InsideLeft 104/6
SouthEast18 60/18
No.2 105/12
Butcher-boy 120/19
Titmnttm 90/12
MarineConsult 55/10
Purdey1 80/15
Dr Patience 71/13
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The simple question was: what happens, on close, to the Delt share price on the day of a confirmed funding deal (the expected outcome) or a message saying funding attempts through monetisation/ farm down have failed (ie placing process must be initiated)? Prize: the honour and glory!😀
Just reply and add, if you want in!
DrP, thanks for sharing wise thoughts. I agree with all and seems like this has real chances of us all looking back and hopefully breaking even or better. 🤞i think my break even is around the 65p mark but would need to check to be sure.
On funding this feels like an easy buyout from shell as this is small change for them so feels very possible for them to take 10% for covering all costs, same kind of deal for Selene. With several interested parties though it can easily increase the value which is a good sign. I'm happy waiting for the outcome as most are but very tempted to drip feed in a few £'000 as feels up side very high. Totally understand everyone been through this before and been let down, I also subscribed to the rights issue at 70p and expected the sp to increase when oil was found. Just made no sense we were prospecting and found oil and then company value fell.....mad
With regards to our CEO, the latest presentation reads as follows...
'Graham joined Deltic as Chief Financial Officer in 2013 and became Chief
Executive in 2018. He previously worked in corporate finance and M&A,
specialising in advising mid and small-cap public companies. Before joining
Deltic, he was a Director in Corporate Finance at Ernst & Young. Previously, he
was a Director in Corporate Finance at Arbuthnot Securities where he gained
significant natural resources experience acting as nominated adviser and
broker. He qualified as a Chartered Accountant in Scotland working for BDO
and subsequently PwC.'
Seems a pretty decent CV as far as negotiating a good/sensible deal is concerned. Let's hope he can pull it off.
Received an email from Graham confirming that and i quote "We are continuing to engage with a number of different counterparties in relation to a range of potential transactions on both of these assets"
GLALTH and have a great weekend
No 2, I am the same, I always stay well clear of AIM actually. However, I feel this one is different, notwithstanding the sp seems to live in its own sphere detached from what I feel is a good portfolio of assets (and getting better/ more derisked). The main issues of fear right now: green lobby, politicians, windfall taxes, oil&gas companies pulling out if the NS and funding. I feel the usual risks around geological chance of succes are almost not there for Selene and Pensacola. The only one with any real substance is the funding. Without funding we cannot drill twice in 2024, as simple as that.
Thin trade of this share suggests to me that most are holding (and most probably paid a lot more that the going rate), including the large shareholders.
As for the valuation by the brokers with input from the CPR. The CPR actually only values Pensacola by the way. Don't forget Selene...on top of the CPR valuation. The latest Allenby valuation (on success/fully derisked) is 465p/share for both assets. That value is pie in the sky, but even a third or a half of that would be very nice.
The NPV10 is based on a successful drill and that funds can be raised, not only for the drill in 2024, but also the whole investment in the future infrastructure. There is a good chance of this happening with Shell as the operator. One should also add operational risk, risk of war etc, but that's generally low if there is a decision to actually start producing.
It's a waiting game in a sense, but the current risk discount is overdone in my books. The discount for the risk involved is too high given there is a decent change the funding will be closed soon. Once the funding is annouced, I believe we will see a serious re-rating.
Hopefully we will have a very happy Cookoo in 2024!