RE: North Sea Booming for analysts with sufficient braincells to see the facts!24 Sep 2023 13:45
Yes, there are some sensible posters. It was Algy Cluff's Cluff Resources prior to the name change to Deltic in 2020, so it has survived for a long time in a very demanding industry. I bought some shares at 31p after the announcement that Pensacola held 2 x the reserves previously thought (in my view this type of forecast often increases over time).
I bought with a view to the full-year 2023 results being out approximately April the 19th 2024, giving Deltic the intervening time to prove their worth.
No doubt they are in the right place at the right time,with the right credentials and expertise, and lots of noise indicating this. They are essentially subcontracted to companies like Shell, because Shell does not want to go to the expense of keeping all of this expertise in house, also off-setting the risks involved.
But, Shell is a very powerful partner & Shell are not involved because they think there is nothing left in the North Sea. It probably goes back to Shell'agreement to change domicile to the UK from January 2022. It is no stretch of the imagination that at the time the Government said that they were thinking of changing direction on North Sea exploration & asking Shell what they would bring to the party!
It is a matter of fact that Deltic are not wild-catting in the North Sea, more scientific highly-technical surveys and expertise, in proven areas, with a relatively high hit-rate of success. Transforming Deltic to a wealthy rising star, with significant oil flows is starting to happen, no bank is going to foreclose on them before Pensacola starts to deliver, and other fields just need the catalyst of a bit of luck. The more expertise you have the luckier you get though.
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