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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
If the gov want fuel security ,haps stump up money for pen ,tell shell no more taxes as long as uk have all the fuel , TOO SIMPLE COMMON SENSE
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.
They can focus on selene still very cheep
Farm out is complete is this is successful then they could finance the 2nd well easily . If they can get an extension or something pre agreed
“ 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.
WILL GO THE SAME WAY SMOKE AND MIRRORS, ms and algy are sitting back in sa giggling as we speak ,imho
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??
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 ?