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DP exactly my point. Time will tell
Ok GGG🙏🏻
Spencer, if not already part of a plot, will surely be a very angry man right now. Feels risky if the CEO doesn't have him onboard in some shape or form.
I may be back Dr Patience if this is what they;re going to do. Absolutely stunned by today's news. How we managed to get away Selene on such good terms and not a discovery is mind boggling. Best case outcome is they give away 60% of the company to some wealthy shareholders. It would be nuts to let Shell pick up 30% of the field for nothing.
Surely Michael Spencer could pay for this out of pocket change. Not sure what Richard Sneller is worth.
GGG, I agree, there is a plot somewhere. TBC!
Sorry to see you out (almost or in full), I have enjoyed your contributions!!
Fairdealer, the majority shareholders may have been unwilling to fund the drill at +30p. However they may have told our CEO they would do it for 20p. Hence the number we're bouncing around now. If this happens then you know the deal was agreed before today's rns. There's no way they could tell the market they cannot get a f/o away and have raised £10m with some multi-millionaires at 20p. They need shareholders to believe it was this or nothing.
The rns is particularly bad, which could be for a reason. We'll find out in the next 4 weeks. Good luck folks.
GGG, shareholders listed on the Delt website...
The biggest shareholder worth a look!!
Whether Selene is worth more is academic at this time. The Company could be in the same position as now. The CEO has some questions to answer as it was known weeks ago the Liablities the company faced at the end of May. GS may have been concentrating on a FO deal but should have known given the Political environment a fall back position should have been planned. Maybe there is one in place? The majority shareholders would have been aware of the position some time ago and appear unwilling to back a fund raise. PI's need to consider the possible outcome of these events.
Is it possible JV partners could take a bigger share which enables Delt to retain a lesser interest in Pensacola?
One avenue that I haven't mentioned, which would be the best case scenario, is finding some parties with deep pockets to raise £10m. This would mean an extra 66% shares in issue at today's sp. They can probably get an additional £1-2m from the market. And they have just over £5m in cash. So it's possible for them to get this over the line and still have a couple of million spare. Or they could try giving an extra 10% to Shell (for a nominal fee) and raise less money. This would mean £10m is required in total for 20% stake in the field. They would then need to raise £7-8m and use some of the £5m cash they have in the bank.
The big question is whether they have already spoken to parties with deep pockets who have said they'll only stump up £Xm at 20p. If this is the case then mgt need the sp to drop to current levels in order to sell the raise to shareholders i.e. it's this offer or we lose the license. Out of interest, does anyone know who our biggest shareholders happen to be, and how much skin they have in this company?
If this is what happens then it's already been agreed. If I was worth a lot of money I'd see this as a pretty safe bet. The issue isn't the government at the moment, although they are a bunch of h@lfwit c@nts. The issue is getting the cash to appraise a multi-decade discovery to re-rate the sp. It is years away from development but the start-up value is now.
If indeed a raise is announced in the coming weeks then I'll come back for more. They will have 2 guaranteed drills. And will have maintained higher ownership of a potentially huge gas field (although at the cost of significant dilution). If this happens then I feel the sp could re-rate quite quickly to +30p. Only good if they offer the same deal to PIs and you have cash spare though. Will have to wait and see now.
AIM is so murky.
“I still feel Selene is worth more than the current share price”
If there is success at Selene it may well spike the SP up but then there will again be an extended period of nothing and Delt will be back in the business of trying to farm out more of Selene to try and fund more appraisal and ultimately development in a market where very few are interested - so if Selene does progress it’s unlikely to see production before maybe 2027 and Deltic might be lucky to still own 5% of it (or shareholders are further diluted by future raising)
Really hard to see any investment case now, other than for a spike if there is some Selene success - and that’s a risk as failure likely is the end
GGG sorry to hear that. I still feel Selene is worth more than the current share price, in case they give up Pensacola for nothing. Still feels unreal if they do, real money have been invested and it has proven value. To let it go for nothing will be a huge failure and I suppose it will then be goodbye to the CEO. Even a mediocre deal is better than a zero value outcome.
truly ugly. not sure why i bother with speccies. turns out i was the rainbow chasing lemming on this one. sorry to those i dragged across on this.
can't put into words how much i hate the political parties in this country. plus side they have got £5m cash in the bank and a high impact fully carried well in a few months to retain value. there's also the outside chance of a f/o, but imagine this will be on rubbish terms unless this is all about pushing an existing party for a deal. or there's an asset sale rather than handing it over to shell. shell is the big winner on this one. incredible delt cannot borrow and raise £12m. reckon pis would give them £2m. it was about finding the extra £10m.
flag has been put up today. full disclosure i dropped 100k yesterday and another 500k this morning at 21p. have been hit for £200k in 1 week with i3e taking a bath in this time as well. what a ****ed week this has been. last time i got smashed by this much was when the uk shutdown for the pandemic.
full disclosure i dropped 100k yesterday (thankfully) and the remaining today at an average of 21p. have been hit for £200k in 1 week with i3e taking a bath in this time as well. what a ****ed week this has been. last time i got smashed by this much was when the uk shutdown for the pandemic. good luck to all remaining holders. too risky for me and should have learnt my lesson on speccies by now.
still can't believe this exploration find can't find a partner thanks to our f@cking id!otic political parties.
That 28p was someone just having a laugh..
Do you know the first warning sign shouldve been when Malcy started claiming "10 bagger"
Whats happening 28p now
FD20, a loss of Pensacola is a distinct possibility as laid out in the RNS.
Delt has cash to operate through the Selene drill, so I don't see a rescue plan being warranted, but who knows.
“ The dialogue is clear, but do you beleive the Major Shareholders are accepting what could be an end to the company?”
Why would it be the end of the company? Selene will go ahead and other prospects potentially have more interest. I think what is clear is the larger shareholders here are not willing to put substantial new funds in themselves and do not want to be diluted substantially in their stake in Selene and other prospects for the sake of Pensacola which the industry has just completely passed getting involved in.
The dialogue is clear, but do you beleive the Major Shareholders are accepting what could be an end to the company?
I doubt it and will not be surprised to read a rescue plan has been agreed with LOrd Spencer and Richard Sneller and ordinary PI's will be left high and dry.
Not the RNS we were all hoping for. I wonder if Mr Swindells will do an interview on Proactive today?
“ but instead likes to panda to the countries”
I don’t know how we bear it.
bit of a body blow this news.. one would hope a way forward will be found but end of may is a month away and the wording of the rns is to me considered negative... one can only hope the wording is promise less deliver more....
i could moan, but no point the uk is anti business , far too much red tape... and none business minded politicians running the country and probably about too.
the property market is on its ****, manufacturing , the uk has raw materials and commodities to be self sufficient but instead likes to panda to the countries that are pro business and manufacturing.. this is why inflation is rampant and interest rates are high making many good projects un profitable.
if only we had a sane trump type of person running the country... a pair of balls ..instead we have gove and sunak
that have no idea..
if the licence is lost or farmed out i can se sub 10p...
atb
It's the use of the word 'significant' in the Jan RNS thats very disappointing following this outcome. It's the ideal time for someone to step forward and buy the whole company at a reduced rate.
“ Dilutive yes, but the options are an almost complete loss. The same issues will surround Selene and other prospects.”
In which case this is already a dead duck and no one will touch it with a barge pole - as they allude to though Selene has a different profile as it can be tied back to existing infrastructure so it is more attractive.
They are totally reliant on Shell developing Pensacola and I believe a substantial reason the farm out has failed is that Shell were not able to give any future farm in partners any comfort they would actually go ahead and develop it so there is no point diluting heavily just to end up in a dead end anyway.
Again - read what the company have just told you. They don’t expect to do an equity raise.
Dilutive yes, but the options are an almost complete loss. The same issues will surround Selene and other prospects.
Unless Lord Spencer and Richard Sneller have become complete philanthropists, does anyone beleive they are standing idly by??
“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.