Member Info for DrPatience

Indeed Rooster! Fresh team, fresh start!

SE18, it's fairly understandable that for those with no real interest in a medium/long term hold, I can see why a quick in and out makes sense: 50% profit taking not to be sniffed at after a week. A lot further to go in my view, so I am hanging on to what I have...even if that means waiting until end '24 or even later.

The share ought to be comfortably above 70p even without monetisation news; once that comes, I expect another boost to well above 100p. After that we probably need good news from the next 2 drills scheduled for 2024 for the sp to move again. Bad news can of course equally set it back. The odds are very good now though!

Rooster, are you saying there more bad news to come?

If so, I agree, it's better to get it out if the way...

JackD, good analogy and thinking! I don't think it is too early; indeed, I would be surprised if such discussions are not already underway. Both the latest RNS, an interview with the CEO and various broker notes support that notion.

The exact numbers will come down to negotiation, but I would be super surprised if not at least 2 or 3 parties are interested, given the significant upgrade of Pensacola, not just in terms of volume, but also of some of the other key factors like expected flow rates.

Delt/we now sit on something which in all likelihood is highly valuable. The probability of a good outcome is higher than ever in Delt's history!! Anyway, this is how I see it.

Louis,

Ref "provide the basis for enhanced perception of the Company, improving its marketability to a wider investor group."

That means they wanted to get away from small investors with a penny share mentality. Rightly so.

It's not directly a precursor for a fund raise. Even if it is, so what?

I'm actually really unsure what point you are trying to make and why?! They have a burn rate of 2-3 million/year plus investment in fields (buying licences, surveys, drilling etc). If they need more cash it will come from monetisation or fund raises. As long as the cake is getting bigger and bigger; and specifically bigger than what is put in, then I don't see any issues.

Louis, it's correct they don't currently have enough cash for both. It's s statement of fact.

The company is working on monetisation events, farm down most likely, I think. Fund raise is us investing in more upside, so doesn't bother me at all.

If you go through the broker calculations (which I have done), you can can replace the assumed avoided expenditure money through farm down with fund raise money instead (thus keeping a higher % of future economic benefit), and you will still end with valuations substantially higher than the current share price and probably even higher than the current broker valuations in my view.

More fundraise is not a bad thing, unless you don't have cash ready to invest. At some point they also need to prove they can deal make&monetise, so I feel they will probably go for monetisation this time. If the terms are not right, I would much perfer for them to fund raise and invite ALL investors to take part.

Louis/all, worth reading the broker reports (costs a little bit to get access) - they all seem to land somewhere between 2 and 3 pounds/share risked value.

If both Selene and Pensacola are proven to be fully commercial ready, then the valuation is actually a fair bit higher. Could also be worth close to nothing if both failed (seems rather unlikely with all the data available now for both fields).

Pretty much no value is attributed to the other fields and any new licences, so lots of extra potential upside in addition to Selene and Pensacola.

Will take time and patience; I intent to hold at least until end '24. Things will be clear by then.

Louis, why do you think a fundraise is a given?

The next step for Selene is fully funded. The next step for Pensacola will possibly/probably be funded by a farm down for Pensacola. It's understood a formal process has already been started. If that fails, then a fundraise will be needed.

I actually would welcome a fundraise, as that means we will leave less money on the table. In a nutshell, the further we take it towards full commercial exploitation readiness, the more it's worth. All investors should be invited this time on a pro-rata basis, in my view, as much as it would be quicker and safer for the company to go with institutional or large investors to lead the round.

Rooster, thanks!

I think we can look forward now, a new start if you like!

Hopefully, we will see the number of samples going up steadily this year (straight to the bottom line)

This share has really been beaten down; kind of deserved but overdone. ,Underlying IP is unique + potential is huge! With the new team and more focus on sales, it should work out!!

Trek, I agree, this is great news. The financial comms have been on several occasions been a bit fluffy and sometimes misleading, so good with a change.

Ref: "The NED also had to go especially after the 1m bill outstanding", did I miss something?

Purdey, yes indeed. The news are above and beyond what I hoped for, but let's be brutally honest, none of us could predict this news, as much as we were hoping for something positive. Still, it's a journey and requires patience; months and years.

Let's just enjoy this moving towards a more sensible valuation.

Noel, it was probably a junior person somewhere, but news leaked and someone sneaked a few in under the radar, methinks. That's ok, it happens all the time:-)

Give it time. Still lots of shell shocked people in panic after thinking Labour will shut down the north sea (we now know they will not), fabricated rumours that Shell is leaving the north sea, uncertainty re Capricorn etc etc. Logically it is now worth much more than when the initial Pensacola drill results were announced (around 70p equivalent). Even just Pensacola. Also, don't forget there will be short term traders taking profit on the way up. Delt still needs to show they can dealmake; and if they can, this has a hell of lot further to go!

Noel, in fairness yes.

Noel, sincere apologies, I accept you never said that. I inferred from you agreeing with Cookoos post/being a good one. Glad you don't agree with those statements re irregularities at Delt.

Louis, yes, indeed, you are right!

Wold be good to start having news so we can properly assess Pensacola, the Capricorn JVs, value of new licences, etc. etc.

Richdam, this is the issue: they ran an accelerated bookrunner exercise (for speed), then offered existing shareholders to buy 1 share for every 24 held. Cookoo's issue is he wanted the same allocation as the institutional/large investors. Depending on the day of price setting and when you buy, there can be a small price difference, but in reality there has been plenty of opportunity to top up both before the fundraise and after at better prices.

I agree with Cookoo that all investors should offered the same allocation; as a matter of principle, not because I feel short changed. Companies can make such placings at a real discount, which of course would be nasty, but still allowed, subject to the appropriate resolutions being in place (which they are even now after the last AGM, with 90+ % of investors in favour)

Cookoo, you were not short changed in any shape or form, if you feel it was special treatment, then so be it. If you don't get it, i.e. how things work here and elsewhere, then let's just agree to disagree. I really have nothing more to add, I have provided all the info you need or indeed any other investor who might be in doubt, especially after reading your allegations about wrongdoing by Delt. There is no wrongdoing, no evidence has been provided, just slur. Note, I have no links to Delt apart from being an investor, so I would be as interested as anybody else if you had proof of wrongdoing/fraud etc.

Cookoo, I really wish you would inform yourself. For the sake of clarity and as much I hate that not all shareholders are invited, it is entirely normal for companies to carry out fund raises inviting only institutions (or large shareholders). It makes the process simpler and faster for the company. Depending on the size, shareholder approval may need to be in place. Just check the resolutions, which we all had a chance to vote for or against, namely resolution 7 and 8 ("To authorise the Directors to allot shares" and "To disapply statutory pre‐emption rights", respectively). Both adopted with overwhelming majority. I personally voted against Res. 8 though.

In the case of Deltic, the share price offered was in line with the market price, no special discounts were offered to any investor. That's what I mean by no special deals. The fact that it is offered selectively is normal and not considered special. I am invested in plenty of other shares where this has happened. I hate it though, but only as a matter of principle, nothing less, nothing more.

These fund raises can become nasty if not offered to all shareholders and WITH discounts. This did certainly not happen at the last Delt fundraise and did in fact never happen at Delt to my knowledge! I have only been invested for a couple of years, so can only speak for that really. Don't confuse this with share options offered to management, which is a reward issue, not a fund raise.

You can read an article like this one, which has quite a good summary of how things work at AIM.

https://www.shlegal.com/news/equity-fundraising-considerations-for-aim-companies-during-covid-19

Fair point Noel! You are probably right, let's see how it evolves and if we keep having such block buys. I agree they are relatively small.