Deltic Energy Share Price (DELT)

15% down yesterday 9% spread new 17p low.

When you need him

Not wanting to end up cuckoo but the new licenses are highly important.

If Deltic have the ability to find gas in, if memory serves, unexpected geology then they have the expertise to find it again. That is they applied for licenses well before the findings at Pensacola had been released, some would say that is good practice others would say very canny

That is the basis of my positive view but am seeking confirmation or refutation that it has value. Now where has Exploration disappeared to? I have always enjoyed his contributions.

And also yours Dr P which are very even handed.

How low can it go? Utter disgrace this with not a word from the BOD. What are they thinking as they draw their big bucks salary.

Shares now trading at 0.85p, pre consolidation.

I am tempted to dip a toe back in but the price action says the SP has further to fall.

Watching.

My understanding is the economics of Selene are much better due to infrastructure. This is why it was more attractive as a f/o proposition. Penascola as far as I know is a much bigger investment to exploit, which is why the f@ckwit political parties of this country have thrown a massive spanner in the works for the f/o and future development. I said earlier the mcap might drop down to £15m, which is effectively the value of the Selene free carry. So that to me is the base value of the company without any value attached to Penascola. From there it's then a coin flip with a 70% CoS to see if it does multi-bag from 15p. Still a gamble though.

I also think £15m mcap may be the nice round number from where they raise cash. You double the share count to get the Penascola drill away with full 30% ownership maintained plus circa £5m cash in the bank. Drop by £5m for every 10% we give-away. One would hope we can get some sort of fee or extra carry for the % loss. I think a £4m raise (plus small fee / extra carry) plus £2.5m from cash in the bank should allow us to maintain 15%. By extension we'll need £8m to maintain 20%.

Having said this I'm unsure if +£5m dilution is allowed. If they don't have the ability to raise up to £10m then mgt are f@cking !diots and shouldn't have a job. They should always have avenues open to raise cash, no matter how confident they were of a f/o. Pure incompetence otherwise.

Hopefully they go for the bigger raise and try to hold onto most of the 30%. Like Dr Patience I felt a raise was the best option when the sp was in the high 20's. And now it's the only option (providing mgt haven't f@cked this up as well). Absolute clusterf@ck but at least the bottom appears to be near.