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Just profit taking. This always happens when people are waiting on news and they get something else. We may pull back to the high 30's and then continue upwards as everyone starts to think the news must be around the corner. Few things for people to consider:
1. Operations are set to commence on Selene in July. Penascola is committed as part of the H2 plan. And they need to get formal sign off on the f/o by regulatory bodies. So news is guaranteed in the next 12 weeks imo.
2. If they do a f/o they won't be requiring cash for a very long time. The operational costs here are very low as they're an incredibly tiny outfit. Selene is carried all the way to the success case so with a strike they still won't need to fork out on the appraisal.
The most important thing is they retain a large stake on Penascola. I wouldn't want them to part with more than 7.5% as Selene is already carried for some time, so they don't need any money on that front. If they do give up 10% (or more) they would want to receive more than just a free carry on the appraisal. If terms are rubbish they should simply do a raise. The market would be a little p!ssed off at first but they can def. get one away in the high 30's / low 40's and would need about £10m to cover everything, so 25-30% dilution. Hopefully they can get decent f/o terms with Shell or Dana. Getting in another partner would be foolish and make things harder on everyone.
I agree and that was at of Dec 2023. At the end of the day its our investment but their jobs with huge salaries. You do the maths lol
Agree on the cash raise. They are sensible directors running this company and they are hardly going to run the cash balance to zero before they raise.
“This success further demonstrates Deltic's ability to attract world class partners and our priority now is to build on the Selene farm out success with Pensacola.
We are progressing an active and ongoing process to realise value and farm down our Pensacola discovery with the aim of bringing in another high quality partner and reducing cost exposure to the well.“
Active and ongoing, Sounds like excellent news to me.
Jack
Cash burn in line with expectations and more than enough cash in the bank to take us to well after the drills, subject to farm out deal being made. Fund raise now is not part of the plan. If they need cash going forward to fund the day to day ops, surely they will only do next year; at that time the sp will be very different and other monetisation events may likely take place.
If the 2 drills are not good, then it's pretty much game over anyway, guys and gals!! Very very unlikely in my view.
Boyscout trades/low volumes, doesn't mean much. Surely nothing to do with teh RNS; everything is on track as far as I can gather. As GGG has said a few times, there are investors happy to take 10% profit. That's fine, just not for me.
Someone say we might need a Cash raise?
Consolidation starting to make more sense now?
I did say at the time but got poo-pooed by most!
I think there will be a cash raise to safeguard if the drills are not positive
Profut takers I think. Hopefully no worries.
BadA For me, 99% was already signalled via prior RNS. So little new info to get excited about. Cash burn might be a little worrying. Will a cash raise soon be necessary or are the free carries sufficient?
But, in general, AIM stocks have been unloved for a while now. As well as Deltic, I am invest in several AIM 'pearls' (FUM, ATM, IOF, SRT and a few others) and all are trading at prices far lower than (my) logic suggests.
On the RNS ?
Oh! Well! - hit the trades chart 2 minutes 14 seconds before the close of play today! Lets see where the results, and more importantly the announcements, take us!
Yes I sure do respect people's views
There are 3 main aspects to trading news , fundamental and price im currently focus on the price for now and keeping close to this geopolitical which will indirectly effect deltic such as windfall tax and oil and gas policy in general they spend loads and technical costs and extraction if deltic get to this stage how would you feel about 75% tax on profits being an investor if they need to shut down matienace the government won't come running to save them.
Quoted from the Deltic Website:
Deltic Energy Plc is an AIM-listed natural resources investing company which has invested in a number of offshore oil & gas assets in the UK and is focused on realising the additional exploration potential of this proven hydrocarbon province.
Oil up has no bearing on us - we're gas. And geopolitical uncertainty only impact oil producers. DJM, you're clearly here for a quick buck, which is absolutely fine. But you're coming across as a plonker.
As for resistance, there's charting and there's market psychology as well. You've funnily enough picked the Mcap levels of £40m and $50m to breakthrough (psychological barriers). These are the numbers I think we'll settle at in the run up to 1) f/o news, and 2) the first drill turning. We're now bouncing off £40m mcap, which we need to hold above post f/o news. First drill turning in q3 is then guaranteed (£50m mcap). Beyond that will depend on how many lemmings come running this way, and what we find. Two reasonable sized strikes with a lot of lemmings and I think £100m mcap (108p) will be reached with a shirt pitstop at our recent highs in the high 70's (post Selene turning up +ve). That's my take at least. First of all we need a decent f/o to be completed. GLA
Please take this feedback positively, coming from someone who has been there - saying things like "Oil up and geopolitical uncertainty WILL continue a steady rise past 50p today" is a route to disaster. One cannot afford to be that confident when it comes to trading, as it reduces clarity and introduces emotion. Train your brain to say "the share price MAY do this or that" instead and you'll be much better off.
Not to mention being so certain and then so wrong reduces credibility...
Short term resistance 44.5p
Medium term 54p
Long term 74p
Any thoughts charters ?
Yes I have been adding from the last 40p retracace now 28p all the way to 43p now trying for new highs
Djm, I want this to happen and it will happen...but if you want it to happen today, you need to start buying!!! :-)
Farm out news will fix this in an instant...TBC
Good uptick from here should see this hit past 44.5p very soon holders and investors
Time for another intra day technical rise off support
Oil up and geopolitical uncertainty will continue a steady rise past 50p today gla
for those who don't knwo malcy he's the o&g commentator that kicked the f/o deal up a gear when he said delt is a potential 10x. i pay attention to the shares he has in his bucket list but to be honest he can talk a bit of ****, especially with his forecasts. obviously under-valued here, which is why i invested. but there's no way this will 10x unless they prove up the two biggest gas finds in the nth sea in the past couple of decades and the lemmings go bananas. it is good for a 3-5x imo providing they have two great drill results and the f/o isn't too punitive. reckon 100-120p would be a realistic target range. gla
Hi SW, many thanks sharing, always interesting to hear what people say,
I am not familiar with the source.
I suspect we will soon see lots of coverage and as GGG said, the "AIM lemmings" will pile (and for a good reason)