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Bad news everyday no time to be in UK listed small cap shares.
Petrofac yesterday.
Down 45% to 21p by 9am on update RNS.
Where do i write told you so ,could this lead to a share issue ??????????????????????, mind you the con is who will get/who holds / booty of the failed pen ?? sounds planned ,smell a rat ,IMHO
“22p would raise just over £20m“
The SP is now 22p and any fundraising would be heavily discounted to that - and as they’ve just announced no one in the industry is interested in Pensacola. It’s highly likely based on discussions they’ve had any equity raising is either not possible at any price, or on terms that are so dilutive it’s better to give up Pensacola than dilute existing shareholders share in Selene and other prospects which do seem to have more potential.
This is very disappointing news and goes against the RNS narrative of 'significant interest' and 'looking forward to updating the market' that was released in the 19th January RNS statement. To find out that there is really now no interest is very disappointing and will have cost folk quite a lot of cash. I trust the RNS wasn't misleading at the time of release in January but it would be very serious (possibly fraudulent) if it was found out to be in the future... something has gone seriously wrong at the Deltic HQ and sadly I'll be licking my wounds and being glad not all my eggs were in this basket. Fingers crossed something can be salvaged.
RNS from 19th Jan:
As previously communicated, Deltic continues to work on a number of potential options to both realise value and mitigate exposure to future drilling expenditure on both Pensacola and Selene and has received a significant level of interest. Deltic is continuing to engage with a number of different counterparties in relation to a range of potential transactions on both of these assets and looks forward to updating the market in due course.
Spike yep the RNS does state No Fund Raise. Does anyone beleive Peter Spencer and Sneller will write off their significant investments?
We have all been conned.
22p would raise just over £20m
I did...but don't underetsimate the power of doing the fundraise at half price vs yesterday. It basically means Pensacola comes for free!! The damage has already been done.
Did people not read the RNS - they don’t expect to be able to do an equity raise, which is no doubt based upon soundings already done.
“ This, coupled with the impact of the political and fiscal regime on UK E&P company valuations and investor sentiment means that the Board believes that accessing traditional equity capital, as the Company has successfully done in the past, is unlikely to be a viable option to allow Deltic to meet its 30% share of the Pensacola well (currently estimated to be roughly GBP£15 million net to Deltic).”
We cannot realistically reject, the large shareholders will decide and now get a good price. Possibly all planned. But fundraise at this price is still good for small investors. Better than giving up the licence.
What price per share raises £20mil ?
If faced with a express fund raise, would pi's reject and prefer to lose Pensacola which would automaticaly transfer to the JV Partners, who have oodles of cash??
Cannacord today.
While there is still some hope that Pensacola funding may be found over the next month or so, we still believe that carrying some value for it in our target price is reasonable. However, naturally we heavily cut that value to reflect the clear and near-term risk of asset loss.
As a result, we reduce our risked NPV10 based target price to 110p (from 180p). That includes the following: Selene, risked 89p (unrisked 133p); Pensacola, risked 8p (unrisked 96p); Syros, risked 15p (unrisked 148p).
Yep, they should have done the fundraise earlier. Now they are on their backfeet.
Not sure why there is an end May deadline? May be contractual that they need to show the cash at that point?!
They’ve effectively ruled out a raise as they indicate they can’t complete it - no one is interested in funding Penescola in the current environment.
They have less than 28 days to acheive funding to plug the shortfall due to NO Interested FO partner. A 1 for 1 raise at 20p would give the headroom required. Whether or not ordinary PI's will be allowed to take part remains to be seen, otherwise we have lost Pensacola.
Calling someones bluff ? how does that converstaion go ?
I suppose it's possible..they're actually calling someones bluff....
Difficult to even get a quote for buy or sell...panic panic panic
Money to be made - yes, but will possibly drop like a stone due to panic. Even if we have a one trick pony, still worth more than the sp of yesterday. There is no doubt also a political message here, just like when Shell is talking about moving to US.
Conservatives are just as much to blame. At least Labour are open it whilst the Conservatives pretend to favour energy independence. The EPL has been a disaster for British industry and energy security. They should be ashamed of themselves.
We look forward to the start of drilling operations on the high impact Selene exploration well, in which Deltic is fully carried for the estimated cost of the success case well, which remains due to spud in July 2024. In the meantime, we will continue to pursue all avenues to progress Pensacola and will update the market in due course."
Still money to be made.
To be honest, both Labour and the Tories have not been helpful. What a sh*tshow.
I did say I found it funny that there was no mention of the farm out in the corp presentation, however the usual cheer leading squad try and drown out any reasonable line of enquiry that doesn't tow the party line...
I detest labour.
I think it will be lucky to hold 20p - Deltic's main asset is effectively worthless, the only really hope I see now is by putting out this message they may be able to find some vultures who now come into the process and allow them to keep a sliver, but I think even that is rather unlikely as future monetisation relies on Shell committing to development and I think that is probably unlikely unless the political environment changes.