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.
Why get these new licenses? They can't fund £15m for the biggest North Sea find in years.
Maybe a placing coming
CEOAdam, yes, unless theysort out Pensacola, there is no point. Simple.
It's not over yet though. The market has assumed Pensacola has been lost. An assumption rather than a guaranteed outcome.
Because a Labour govt has already guaranteed that it WILL NOT REVERSE any licences already granted at the time it takes office. Simple.
They messed up. They should have released 1 rns placing at 38p. We have won more licenses and are placing shares raising £15m for pensicola. Release a placing on good news! Do you want me to run this...
Right now a predator company wanting to partner with Shell in the North Sea, can make an approach based on the Deltic Market Capitalisation of only around £18m, and share in 2 x proven oilfields in Pensacola and Selene. Plus Syros and other prospects in the pipeline plus new licences.
In terms of Enterprise Value Deltic is extremely vulnerable right now!
@getafrip - well said. Ithaca or Harbour seems likely predators. ORCA recently tied up with Ping, LBE with the Japanese. We are now a sitting duck. The board is begging for a white Knight without actually saying it outright!!
Getafgrip, correct, but I cannot see the board (and large shareholders such as Spencer and Sneller) accepting a low ball offer. Then it's better to just give up Pensacola and take it from there.
Price keeps falling
What is Selene worth to DELT?
Licence worth in billions.
Selene has farmed out but remains 30% I think. It is a great site being low risk with Shell picking up some of the partnership. From a broker note its worth about 89p derisked! Obviously they are quite rampy but at 19p this is a no brainier!!!
Milestone achievement.This will fly next week.💪💪💪💪👀👀💯💯💯
D6576, I love your optimism, but this will only fly in two scenarios:
1) Pensacola is saved. First jump. Pensacola and Selene drills go well, second/third jumps.
2) Pensacola is lost and the Selene drill goes well, first jump; until then a random muddle in the current range, possibly lower due to the psychological impact of the monumental failure of the Delt management team (their last one no doubt), even though a loss of Pensacola is already baked in.
Cash position of £9.1 million at 30 June 2023 (31 December 2022: £20.4 million), with a net cash outflow for the period of £11.3 million (H1 2022: £2.5 million). The first half of 2023 saw significant planned investment and use of capital to complete the drilling of the Pensacola discovery.
Can a knowledgeable poster give me some background on why SHELL won’t back the second project? If it is one of the more prolific finds in the North Sea surely the political backdrop should have limited impact on a jv? A lot can change in a few months, why can’t they get an agreement lined up and if it does become unviable then they can revisit?
Gordon, Shell haven't given up on Pensacola, the problem is that Deltic have to find someone (or something) to fund the circa £15M Deltic need to pay their way towards the drilling costs! All very frustrating as the potential benefits to Deltic are probably 10x that amount. This situation and the RNS released earlier this week is obviously a big worry, but I am hoping it's Deltic's way of managing expectations in that if they can do any sort of deal then after that awful RNS we will be dancing in the aisles, as our expectations as shareholders have suddenly changed in a negative way.
PS, I ain't exactly a knowledgeable poster ;-)
Thanks SE! Got the jist of it from the broker note. Surprised they are struggling with 15m tbh, especially given the scope for return.
I have a feeling in my water that there is more to this than we currently know. Although it has to be said that I am ever the optimist, time will tell if my eternal optimism is misplaced. I bl00dy hope not fingers crossed!!!
I've emailed Deltic and suggested that a shareholder update meeting would be helpful so questions can be answered. I'm firstly surprised by the material change in tone of the RNS information in the last 3 months, moving from 'significant interest' on 19th Jan with $200M valuation to a potential loss of licence on the 30th April with nothing in-between, even in the annual results on the 17th April (13 days earlier) no update to the 'significant interest' position of the 19th Jan was given. I'd encourage others to also request a shareholder update meeting so questions about the current options be progressed can be answered as it does feel like there must be alternatives rather than zero interest in a potentially $200M asset that Shell feels is still worth drilling simply being lost at $0 value. There's also the question over how they are safeguarding Selene from ending up in a similar situation.
Yes I'm also in shock at this turn of events and hope it's not just small shareholders being shafted, but it's business and as a shareholder I principally want to know what's going on rather than being left to guess...like why a fundraise isn't being considered, even at a heavily discounted price.
A shareholder Q&A (in the very near future) would help close the information gaps that the RNS has created, please ask Deltic to make this happen.
A few requests from disillusioned shareholders, e-mailed to Deltic, has a chance of achieving anything meaningful that hovers around zero. Deltic will not be involved in delicate negotiations with regard to the FO of Pensacola one minute, and then give away the essentials of its negotiating stance to a few disgruntled shareholders the next!
This is not going to happen! It is the application of their business strategy, priorities and objectives, in a complex, pressurised & highly competitive market-place. Otherwise they would be in danger of involving themselves in "a camel is a horse designed by a committee" scenario!
May will probably see the objectives of the RNS become clearer, but I don't think Deltic will reach a point at any time/soon where they can give shareholders a detailed explanation of the rationale, true objectives and true motivations behind the RNS!
Getagrip - While I strongly suspect you will be right, a clearer strategy communication would be helpful, esp if they may be looking for funding from shareholders which I continue to view as being an alternative that should be explored rather than simply losing Pensacola - it may already have been with the large shareholders which is another reason for an open meeting accessible to all shareholders being helpful. If us smaller shareholders don't ask for the same access to information that larger shareholders (may) be getting then they'll continue to keep us in the dark so while an open shareholder meeting may not happen I'd encourage everyone to ask as this would give us the best chance at having questions answered.
I'd also note that a shareholder meeting is not the place to air past frustrations it's about understanding the current challenges and board decisions so we can decide to support the board going forward or if I should be selling my shares at the moment I'm guessing if there any future or if all hope is lost and a lot can be gleamed from the way something is said.
I still think there's a future and so I'm still invested.
Done ive e maild the company requesting a meeting Rot