Member Info for DrPatience

In short yes, but can be tricky to pursue. In our case, we have a going concern (fact), so it would a high risk strategy to try and do this (somehow easier to get a away with funny deals when a company is faced with bankruptcy as the directors have a duty to the company survival before shareholders).

Fraud, breach of fiduciary duty, shareholder oppression...lots of possibilities.

High risk and not easy to pull off, as the 2 large shareholders do not command control in any case. I cannot see it happening to be honest. The biggest risk (and basically an inconceivable outcome, as others have pointed out) would be the loss of Pensacola. I think some sort of solution will be found; too much at stake for all parties.

Ol, I with you.

A cheap takeover is pretty unlikely unless both large shareholders and management are involved. I can't really see the benefit for any/all shareholders unless funds are raised on decent terms; cheap takeover would not be that!

Then it's better to just keep Selene only.

FD, technically you are right, but I somehow doubt it will happen. Time is short (but maybe Shell would allow a bit of flexibility); the last RNS pretty much said an accelerated bookbuild cannot be done (although the RNS may have impacted sentiments given the consequences of giving up Pensacola) and this is a big ask given the current mcap.

I would probably vote against a fundraise unless each shareholder would be allowed to subscribe fairly, as a fundraise - if done at the current price for large investors only - would be a steal. Just think about it. A fundraise done at fraction of the price vs autumn '22 with the assets further progressed would probably be worse than us all just sticking to Selene. It's a low ball dilution issue. I would need to run the numbers though.

JamesY, super insightful way of looking at Barc!!

If they just keep not having more scandals, then I think we have further to go!

99ice, I think it just proves that the exec team should be as interested as we are in finding a solution. I feel some sort of fraudulent deal with external or large current investors to look after themselves is not a plausible outcome, despite what many are saying on this and other chat boards.

GGG, nothing stopping Delt doing a £10 million fundraise as such, time is the real issue.

If you wanted to do it fast, you would need to have sufficient allotment and disapplication in place. We don't (ref Res 8+9 at last AGM; standard stuff). So would need notice to hold meeting (14 days as I recall). RNS already said there is no appetite from the market (institutional etc). Even if that changed, you can not make before end of May.

Open offer to all shareholders could work (I would buy), but it needs even more time, including a prospectus as far as I can work out. This is a 2-3 months' project, I think?

Fundraise seems unlikely at this point, unless they could get a bridge loan of some sort. Farm out is probably the only realistic way out. Otherwise it's good bye Pensacola.

Selene is worth more than the current share price, but the shock of losing Pensacola may lead to further drops. A good drill will fix it for sure. It's a tricky decision whether to buy now, as either you will get them cheaper than now, or you will have missed the boat. I'm just sitting on what I have, for now!

Jack, your frustrations totally understood!

However, even if we hand over Pensacola, Delt is a going concern, just with less assets. The report is first and foremost done to cover a distinct historic period of time, what's important is the outcomes over the next few weeks.

I do share the frustrations though!!

Rot/JD, all fair comments!

However, if the RNS had no purpose, why issue it? Why not wait until of May and just say it's over, Pensacola has been lost?

I think they are frantically working on it. Will they succeed? Unsure, TBC.

If lost, it's better to just say it and we move on and focus on Selene.

Getafgrip, brilliant summary. I hope this is what is going on!! That's why I didn't dump my shares.

If they fail, that's the end of the company as we know it, as no more deals with be done (if you can't do this huge opp, then what are you doing?; then the strategy will collapse, sadly)

Getafgrip, I agree. After the RNS, around 5-6% voted with their feet. That's fine, those with little faith in the management team should do just that.

The more I think about the RNS, they clearly have difficulties closing a deal (and we cannot control the market )and there is no appetite for a fund raise (and they cannot rely on us small investors for the full amount; ain't gonna happen!). However, it may well have been a warning shot from the CEO to ALL statkeholders, including large shareholders, Shell and other interested parties, that a deal must be reached before end of May. It may be high risk brinkmanship, but possibly he had no choice and the CEO does not come across as an impulsive, irrational person.

I have a lot of repect for the team in terms of what they have achieved. If they fail to fix the current problem, my views will clearly change. For now, it's wait and see. In any case, I want to see the fruits of Selene, even if that's all that is left at the end of May!!

No, I feel they are doing what is best for real long term investors, rather than short term traders. Just my take.

Having said that and I am saying this a holder of a good chunk of shares, they are not inpiring me that much vs say Shell.

The CEO is just fiddling, slowly, would have liked to see a bit more instant change of strategy, but I think the board is the real, underlying problem here.

And yes Delt is a going, zero risk of going bankrupt. The worst case scenario is giving up Pensacola, which would most unwelcome as multibagger becomes multibagger divided by 2!!!

Olearney, I don't know and it is probably irrelevant at this point of time unless Pensacola is rescued as ours. If not, Delt will just exploit Selene and that's most likely the end of the road; no more licences will be accepted. Selene on its own is worth a great deal more than the current share price, so even the worst case scenario is not that bad.

Breach of trust is the real issue if that happens; all credibility will be lost and we just need to max out Selene!

Selene is probably slightly ahead in terms of maturity and access to existing infrastructure (as I recall), but otherwise I would say they are fairly similar. Most brokers have valued Selene slightly higher than Pensacola. The windfall tax thing is an old story and no different from say Normay, so should not really be the main issue here. Political uncertainty has clearly been very very unhelful, although Labour more or less have shown their cards.

It's profoundly confusing to me that they are struggling with the farm out; even a mediocre one.

Bdogg, it's clearly not worthless. The operator, Shell, is pushing ahead full steam Q4 (all planned, long lead items ordered etc).

Whether we get our fair share is the ONLY issue!! Those selling are assuming it is lost (and more!)

Yes and no. I feel Labour's position has been made clear and not changed since the Dana farm out.

I think the big oil&gas boys are sending warning signals to politicians (incl potential for Shell listing going to US) and may just feel it is easier to avoid the NS.

How is that working for you David6576?

We need concrete news, we are stuck here for now. The big rinse probably done, so everybody else just on standby!! TBC

I kind of agree with you. I hold BP and Shell 50/50, but somehow Shell feels more dynamic.

Having said that, dividend/buyback maintained plus $2 bn of savings to come. Not to be sniffed at!!

On your last point, Selene is worth slightly more than Pensacola (as things stands) subject to both being funded. A total loss of Pensacola is more than baked into the current shareprice due to the psychological shock!

Selene on its own is worth a great deal more than the current sp in my view, but we may need to wait for the drilling results to overcome the current shock and fear!!!

Oh, so happy times for one of our largest shareholders!!!

In reality everybody is exposed here - both small and large shaeholders - if not done fairly and with all shareholders' interests in mind.

EGM followed by fundraise with particiaption of most shareholders would be ideal, I am just not sure if there is enough time. Should have been planned a while back as plan B!! A fundraise has actually been my preference for some time, but now it's a different situation due to the deadline. The CEO has also repeatedly and categorically said it was not a part of the plan to have a fundraise.