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Agree it's all a bit suspect. Problem is I'm leaning toward them doing a raise, or raise / farm-down combination and have driven the share price down so PIs see it as a win when they raise int he high teens.
They have just over £5m in the bank. If they give away 10% of the field to Shell for a nominal fee, then they'll require a raise of circa £6-7m. Surely this isn't too hard to find when you have a billionaire as your biggest shareholder. It would mean circa 35% dilution at current sp.
If what I'm saying about a raise is correct then PIs with cash at the ready could do quite well. I don't see any way they can do a raise and not include PIs. Having said that dodgy AIM operators like to put a Primary Bid offer out in the afternoon and you have to subscribe immediately. Will find out soon enough.
Might have a better chance appearing on the bbc Dragons den to stump up the cash
Contract Law can be very complex. For instance if a JV partner is required to provide funding of X by X date, and breaches the agreement, there could be forfeiture clauses which hands an asset to the JV partner.
It seems strange here, the drill of Pensacola is programmed to start in Q4, which could be 6 months away. The recent statement does seem premature.
NOK, correct. Small investment to retain up to USD200 million one would have thought!!
If I read the RNS correctly they need to find £15m for their share.
Jack, I agree, Selene - unless it's dry (pretty unlikely ) - is worth a lot more than the current mcap. TBC early Q4.
If Pensacola not resolved, I guess the CEO is history, so one would assume he is doing his utmost to get a deal done.
A fundraise at this sp or lower is pointless for most investors, unless we are given our chance to buy in fairly...as we otherwise will reduce our fair share of the value in Selene ( give away value cheaply). Then it's better just to let Pensacola go and extract the value from Selene; then implode Delt and put it down to (a not great) experience.
NoOneKnows,
That appears to be the current situation now i.e. they own a 30% share of the licence but are unable to stump up the £5m.
Good luck win some money. I think it would be strange if Dana petrol didn't take up a similar deal as the 2 could be connected I'm sure I seen that been mentioned
I don't know how various contracts are worded but isn't giving the licence away in its entirety the least likely outcome ? Would it not be possible to (worst case) give 2/3 of the licence away so they only need to find £5m. Better case, sell 1/3 to get the money to fund the other 2/3. Best case is to get full funding but their must be options not to lose the licence entirely. Maybe I'm being naive ?
Best to get your money back on Helix Exploration 10 bagger soon (financed, no debt) a duplicate of Helium 1
I have followed sqz serica energy . Personally I think Maybe thet are going to fund them via some kind of merger. Bit of a wild conspiracy but I think they have the means to fund.
G-G-G
Yesterday’s RNS was terrible news considering all the discussions were around a farm out or placing. Nobody thought the unthinkable that neither would move forward and the licence returned.
However, I disagree with your comment that “this is almost at the value of selene drill alone”.
Are you really suggesting that c£17M market cap = fully funded to success case for Selene?
The narrative in yesterday’s RNS was unbelievable. Long lead items acquired, site surveys complete, rig contracted and remains on track to be drilled in Q4 2024.
But Deltic are at risk of walking away.
Either a major c**k up or part of a wider game plan.
Counting down to end May
Jack
In a no win position re funding regarding the share price. I sold out and will buy back if and when there is a placing. I only held a small position here but it still hurts and makes one angry. Really sorry for big holders like GGG
He1 did similar for their drill, announcing funding was required roughly two weeks before it was a done deal, resulted in the market discounting the price each day the funding was not announced.. Then a big discounted placing followed..
It created so much extra upside
LTH taken to the cleaners, except for those who had the funds and nerve to load up
sorry i should add the worst case scenario for shareholders is the sp keeps dropping and they double the share count at 12p (unless you're buying in at this level). not at all ready to put any money back in here. absolute ****show now but have no doubt that some people will make a lot of money if they can time it right. gla
reckon this is almost at the value of selene drill alone i.e. penascola already written off. if anything is going to happen it will be in a few weeks. i wasn't aware of the may deadline for the deal to pass so i'm thinking they had their potential f/o partner(s) fall over and recognised the need to tell the market before it became a nasty surprise for everyone. it's either that or they've lined up major shareholders (or potential shareholders) for an investment, but have been told it needs to be at xxp. or, the whole thing has gone to **** and they're about to hand over a very large discovery to shell for nothing. that's the worst case scenario and i'd say when the sp hits 15p it's well and truly priced in. aimho gla
Him out (GS). Seriously what do these non exec directors do ? If it was insider trading, i bet it was them. Laughable