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Share being rapidly abandoned now. I will stay in until the drill. Hope the BOD say something soon. Time to keep us informed of progress or not.
Completely agree and doing the same. Anyone have any thoughts on what the major share holders would be thinking right now, I suppose that they must know considerably more than us. If it was that bad wouldn't they have pulled out by now?
I like most long term investors are totally perplexed with how things have changed in a matter of a few weeks. One bad RNS and the share has totally collapsed. It will be interesting to find out at the shareholders meeting on June 4th the rationale for that RNS, albeit we will know the outcome of the FO by then.
I can feel the all out panic now which says to me, if brave maybe now is the time to be buying and not selling. That's not advice just me thinking.
On 19th January we were told: "Progress continues to be made on both the Pensacola and Selene farm-out processes with a significant level of interest from industry". Note the word "significant", so how can that suddenly change in a few short months? The political situation has not changed, this government and the most likely next Labour government have confirmed they stand by existing agreed NS licences, that I cannot see changing. If anything that makes Deltic's portfolio even more desirable and valuable.
30th April we are told: "Deltic have not yet been able to secure a farm-out partner for Pensacola and although there are a number of live discussions with respect to a way forward on Pensacola" That at least is a positive, however if they don't secure anything after everything that has been previously been said regarding the company had a transformative year in 2023 with the Pensacola find, this is going to be very embarrassing for Mr Swindells and his team.
I wish the BOD and team well and good luck to secure something that rewards long term frustrated shareholders, that's what we certainly deserve.
Guys, this was always going to happen. The news on what they've been up to won;t be landing in the next week, to even fortnight. They'#ll provide an update on the last day of the month that will most likely mention an extension on them being able to raise the funds or finalise a f/o. The only reason something will happen before-hand is because the major shareholders (or perhaps another) have agreed to stump up £5-10m.
It is a game of poker here. If they can find another player who is willing to cough up £5m for 20% of the company, then other major holders will need to find funds to maintain their ownership. If this happens there will be another 65% more shares printed for around £8m, but there's a good chance they can hold onto 20% of the field. In for a penny, in for a pound position for the other holders because if they don;t cough up they lose company ownership, and the company loses more Penascola ownership.
I'll be surprised if these !diots keep going down the f/o route. To me it is dead and buried and they should have known this long ago and refocused on raising capital. I'd like to see them get another decent company on the shareholder roster. Not sure why Dana wouldn't go in for £5m alone. They can get more exposure to Selene, and the benefits of Penascola. DELT gets fully bought in partner, and the other major shareholders either cough up or they lose ownership. This would be a good outcome imo (providing Retail get a chance to participate). Either way folks need to recognise the sp could keep dipping with each day / week to 11p based on an assumption that Penascola is dead and buried. The longer this goes on the worse it will be to raise capital. GLA
Michael Spencer and Richard Sneller are no fools. Remember Lord Spencer was ( may still be) part of Government) knows far more about O&G protocols than anyone here. Although a Billionaire, is he likely to see a huge loss here ( his holding is around 18%)?
History here always gives an element of protection to the Major Holders. Richard Sneller is a successful Finance Professional who only invested here relatively recent ( I think 4 years ago)
Is it concievable these 2 will allow their investments to be considerably reduced? I think not!
Is it beleivable an asset worth $200m is allowed to vanish for the sake of £15m?
It can only be hoped Graham Swindells is clever enough in this game of poker. Otherwise he will be left with a hell of lot of egg on his face.
Fairdealer20
That’s a stark observation letting a potential US$ 200M vanish for the sake of £15M. At least a 10 fold return all other things being equal.
There is plenty of Corporate Finance experience on the BOD plus the 2 x major shareholders.
They must have had FO interest as previously noted but the terms on offer must mean that there is more perceived value in handing the license back.
I don’t believe the Capital Markets have dried up so the decision must have been considered that the economics of saving Pensacola was not worth diluting Selene but that’s just as odd.
They mention non traditional funding so they must have already looked at debt finance.
As a long shot reversing into a SPV or cash shell must have been discounted due to the time to execute.
As we have all said, Pensacola was progressing on all fronts so to say at the last minute that they don’t have the finance is just a bizarre outcome for seasoned Corporate Finance professionals.
The clock is ticking but I feel if Pensacola is handed back there will be other repercussions.
Jack
Alongside its ongoing farm out process, Deltic will continue to consider alternative sources of capital and non-traditional funding structures to mitigate costs and/or secure its equity position in the Pensacola well. However, there is no guarantee that such capital will be available or available on acceptable terms.
@pipersand significant could mean important. Important can mean good news, or bad news. Words are released by companies subject to legal scrutiny.
Point taken Glide, however the wording together as "significant level" I think most people would interpret as a number of parties being interested - it sounded highly positive, in total contrast to the last RNS. Nothing much politically or in the financial world has changed since January to make the excuse for such a change in tone of language. To me, there are too many excuses being made for what now appears to be management incompetence. I will still give them the benefit of the doubt until we know for sure what the outcome is. It is make or break time, 13 working days to salvage some trust and confidence.
Pipersand, I agree, politically nothing has really changed since the Selene deal. It is odd. Maybe they got greedy and the interested parties walked? Or they have some negotiations but they are moving too slowly and the RNS is a warning shot?
Feel like I've been led down the path on this one from 26p upto 38p things going well and 1st farm out complete no mention that the 2nd farmout may prove difficult not Dana will probaly want selene resukts before taking on the other deal.
Djm your not wrong ,just join the club , i have been trying to warn peeps since i got my fingers burnt in 2014 , its a bit like scams if it looks to good to be true etc ,we have been sacrificed by the bod who are fine and dandy and couldnt give a hoot