Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Thanks for the response Dr Patience, you guys have probably already seen this link, I don't know anything about this guy but it may be good to form some new ideas that are your own and not his, it was posted on another forum he considers Delt very undervalued.
https://www.malcysblog.com/2024/04/the-bucket-list/
SW, I think you are looking at this the wrong way.
This is not musical chairs. This is oil&gas exploration. It's in the category of "you can lose your investment in full". Delt is probably beyond that, but nevertheless still considered a high risk/high reward investment. As oil&gas exploration move forward you normally de-risk, prove assets etc., hence it objectively becomes more valuable (or fail), so it's not a matter of gaining from each other. Some people get the timing wrong, but that's part of being an investor. Over time it will attract different types of investors, probably not quite institutional investors but probably increasingly specialist funds, but also smaller investors who are willing to get in at a higher, but lower risk level. At some point Delt will start returning capital or do a sale of the company/the assets.
Volumes are low for sure. I know lots of people just holding, waiting for the upside or if it fails (increasingly unlikely), so be it.
News on the next farm out deal and drilling results will build this up again.
Do people think this will get Institutional investment in the shares? The amount traded today seems very low, the reason I say this is that if we are trying to make money are you not just trying to make money off each other rather than institutions, once you guys start selling the share price will drop like a rock??
FD, I do agree with this point!! In short, no it didn't look well thought out, but perhaps they hoped for a farm down deal (I can't remember). In any case, you are absolutely right!
DP yes best to agree to disagree. Just add for the benefit of the newbies. The 2022 AGM was held on 15th June. The excelerated fund raise anounced on 15th September with special GM to approve on 30th September. The reason for the raise being drilling to commence, with Shell, in October.
As a VC am totally aware of the need for confidentiallity, however in this case planning the drill was known some months earlier and provision for funding should have been approved at the AGM in June.
Does that look like a well though out process??
If I recall the Pensacola drill was estimated to be a 60 to 80 day drill, with 40 days drilling and 23 testing. So would this be the same for the forthcoming appraisal drill?
In general - Pre-emption rights (if they exist) give the shareholders of a company first refusal to purchase any new or existing shares that become available. These rights are designed to protect the interests of shareholders and limit the ability of third parties to hold shares in a company.
A lot depends on the directors view of fairness and equal treatment for all shareholders, say whilst being pressed by the urgency of raising funds, which are technically for the good of the company and therefore all shareholders.
fairdealer i'd say it's only **** for pis if the raise price is way below the average sp in the prior 30 day period. otherwise i have no real issues with companies doing things this way. they have to secure the money and unfortunately pis rarely cough up anywhere near what they need. the most important thing is the raise gets the cash required quickly, and is done discreetly i.e. there has been no leak before-hand. judging by the share price level and action before / after the sept 2022 raise i'd say they've done things perfectly.
good thing is it's rare that you don't get an opportunity to buy in the following days at / below the raise price. on this occasion the major shareholders need the sp to double to get their money back, which means they're likelier to be sitting all the way to drill results. this is good for shareholders as it means less volatility up to drill results, and a greater likelihood that any gains will be explosive. so not bad at all imo.
definitely looking like a bagger here. reckon we might have another small pullback to the high 30's next week before pushing up to 45p is my thinking. good news and we're into the 50's. then the fun begins. gla
FD, let's just agree to disagree...as we have done the past, right?
Just to re-state my view for balance of views:
Although I always get hugely irritated - as a matter of principle- if not invited to subscribe on a fair basis (ie pro rata as per shares held), it is also quite normal for a CEO to want/need to move with speed and certainty. Many small investors - and not the likes of you, others on this site and I - will not take up the offer promptly or not at all.
It only becomes unfair if the shares are offered with a preferred much lower price than the going rate.
To a great extent it comes down to trust in the CEO.
For accuracy the Sept 22 acelerated book build was announced after the market had closed. The"Placing Open Offer" closed before the market opened the following day. The Offer was ONLY available to Selected Investors and was subject to a GM on 30th September as there was NO agreement in place. It was clear prior negotiations with major investors ( Michael Spencer and Richard Sneller) had occured.
It is true excluded investors could have purchased in the market at a lower SP than the Offer. However the way the offer was conducted gave select investors a larger share of the cake. Was that treating ordinary PI's with equality?
GGG, the last fund raise, the accelerated bookbuild in Sept 2022, was carried out at the market price 3.5p, ie 70p in current share count. The money was invested in drilling, so although more shares/dilution took place, also the inherent company value went up with at least that amount (in my books...). Therefore actually still reasonable to compare with sp before that.
Those who bought in recently times got a great deal vs the large investors back in Sept 2022!!
The consolidation 20->1 was done without dilution. The CEO will get options ongoing, so some dilution there, potentially. Anyway, that's normal, as you know.
TT - I completely agree with you. Companies have to go with what they have publicly stated, unless someone moves the goalposts.
The Selene deal was brilliant & was stated as transformational. Why would Deltic consider anything but a farm-out at the moment.
This is Swindell's area of expertise, he will be in his element. There will be a queue of companies wanting to get involved & all Deltic has to do is have a beauty parade and pick the most promising deal. With the template of the Selene deal Pensacola will most likely follow some of the major guidelines that have already been set.
There was a share consolidation in May 2023 which was 20 shares became 1 share
Good day for the share even better if it hits the 45p key level for support ££
Wait till the drill bit is spinning then we will see some fun with the SP hopefully between 60p and £1 and they reckon both drills are virtually appraisel wells.
GGG correct and don't forget Malcy confirmed it's a 10 bagger when it recently stood at 30p
I'm guessing gas prices and f@ckwit government policy didn't help as well Dr Patience. There was also a hell of a lot of shares offloaded by Canaccord which must have taken a couple of months to shift. Either way the shackles have been released. Time for some news now.
Caesar, has there been any dilution since Q4 2022 when they started drilling? I can't see anything in company rns history. Just want to ensure we're comparing apples with apples if referring to historical sp levels.
Caesar, yes...and in fact we are in a much stronger position now!
The nervousness around the perceived risk of a fund raise has prevailed and in fairness volumes are still pretty modest.
I know a network of investors also holding/adding (not on this platform) and they are just sitting tight because the current sp is a joke. One might say it reflects the risks, but the upside is so significant that it has to be the opportunity of the year for many of us. 🎄🎅🏻
I remember this hit a pre Pensacola drill high of 4.06p before consolidation which equates to about 77 p so it should repeat to at least that level again
For those companies, its just spikes though, based on nothing. Here it will be sustained rising on real assets.
Been here for over 5 years. Lots of false starts etc but i feel that our time is soon. Still under the radar but will become very big soon imho.
I think it;s safe to say that if the deal is good there will be no more 30's and highly probable no more 40's as well. I may need to revise my sp milestones upwards if we're sitting in the 40's when Penascola news lands (providing it's good). The more coverage this gets after the Penascola deal, and in the lead up to Selene, the higher we will go. There's a hell of a lot of money sloshing about in companies like 88e and PANR that can get a similar return here to the spikes they see in those companies.
SP doesn't appear to be taking a breather. All getting very exciting. GLA
This seems like a well backed company picking up the licence and long standing donations done lots of reasearch into these has a lot of coverage and articles hopefully a top quality asset seems to be on the horizon
I’d be amazed if it’s not a farm out. It’s in black and white in the last RNS
Our attention is now firmly focussed on drawing the Pensacola farm-out process to a successful conclusion and we look forward to updating the market in due course."