Member Info for NoQuestionMarks

Based on gross figures for the six months to Dec 2020 our working interest share is 423boepd.
We know Diever is estimated to have 108BCF gas in place and that production started in November 2015.
2019 financial year average gross production 44.6MMscfd
2020 financial year average gross production 38.3MMscfd
This year's interim results gave us an average gross production figure of 32.8MMscfd.
The field is in decline it would appear.
I estimate we have produced over 80BCF thus far so there can't be much left.
We need to get cracking with the exploration prospects identified in the interim results.
And then there's Platypus... A 103 billion cubic feet discovery just waiting to be developed, peak Production 60MMscfd... we need it badly.

I have thought for a while that a merger between Deltic and Parkmead would be beneficial to both parties.
Deltic have the licences that are seen as potentials by Royal Dutch Shell and Cairn Energy. Exploration costs are largely funded by them, but with only £11m cash and no income I fear we will need to take on debt or another fundraise to foot our share of costs.
Parkmead have £30m+ as cash and a steady income from their Dutch gas assets.
A combined group could save a tidy sum in salaries once the 'fat' has been trimmed off
Both companies have zero debt that a combined group could maintain going forward.
Deltic market cap currently £30m but undervalued in my opinion I value them alongside Parkmead at around £50m.
A merger of equals would work for me.
Thoughts?
BTW I hold Deltic and Parkmead.

Sonofthebull,
Deltic/Parkmead combined would be a group with:
£40m+ in cash and no debt.
Producing Dutch assets
Two Farmed in North sea licences with Royal Dutch Shell Pensacola well commitment now firm and confirmed to the OGA.
Five Farmed in North sea licences with Cairn Energy.
Platypus development? Hopefully
GPA farm in? Possibly
Skerryvore drill decision in 2022? My guess is probably.

It works for me.

Sonofthebull,
I'm thinking along the lines of a merger of equals rather than a buyout.
The technical team at Deltic have convinced both Shell and Cairn Energy to farm in to their licences.
It is our technical team at Parkmead who should step aside in my opinion.

Livinthedream,
Definitely a chance missed in my eyes.
Even after the Shell farm in the shares were trading hands well under a penny.
An offer of two pence per share would have been tempting and hard to resist.
Deltic now 2p+ a share and pushing on towards £30m Market cap. I can see Deltic at 3-4p a share in the run up to the Pensacola drill
If Tom doesn't pull a rabbit out of the hat Deltic could reach market cap parity with us in the next twelve months quite easily.
All in my humble opinion.

I have thought for some time that a merger between the two would make sense for both parties.
Deltic have the partners for their attractive licences (Shell and Cairn) but with only around £11m in cash and no income I wonder how they are going to finance their share of costs. A pure gas play that Independent Oil & Gas and Reabold Resources have already approached unsuccessfully.
Parkmead had £25min cash at the end of December 2020 so presumably have considerably more now after this year's stellar gas prices.
It makes sense to me but both companies seem determined to plough their own furrows so it probably won't happen.
Thoughts?

I am a sceptic too dayteadenovice,
Shells strategy to move 'in step' with society was a reasonable one IMO but we are being pressed from all sides to accelerate to net zero.
We have to 'walk the walk' or we may be made scapegoats of by the media. We can be the solution, rather than just the problem.
A positive is that we had to invest in licences, exploration wells, pipelines, refineries and petrol stations to get our petrol to the end user.
We have a huge network of stations that are ready for conversion to electricity if and when the time comes.

Don't forget we will be generating some of the electricity used by the chargers, 500-600 TWh by 2030 is the aim I think.
It is not dissimilar to oil
We invest in licences and infrastructure to generate the renewable electricity for the grid, our upstream.
We then sell it to the end users via chargers or by supplying their homes with electricity, our retail.
The returns however are quite dissimilar at the moment.

The UK government's office for zero emission vehicles (OZEV) currently meets 75% of the cost of installing on-street chargers through the on street residential charging scheme (known as the ORCS... I kid you not)
Shell are proposing to fund the other 25%, subject to commercial terms being agreed with the relevant local council.
Get in now I say, the 75% government incentive won't be available forever.
50,000 in the UK by 2025
500,000 globally by 2025
I am pleased that we are taking the initiative.
ubitricity.com

The Skerryvore and Ruuval drill or drop decision date has been pushed back by a year to the 1st of October 2022.
North Eigg next year
Skerryvore 2023?

Correction to my post at the beginning of this thread...
The licences I believe have been extended to October 1st 2022 are the central North Sea licences P2400 and P2402 (Skerryvore and Ruvaal)

You never know, sonofthebull. Parkmead are certainly believers having held the licence on and off since 2013
For now. I am just glad that Skerryvore and Ruvaal are within the companies grasp for another year
I am starting to drip feed funds back into PMG based on this bit of good news.
Serica have proven at Columbus and Rhum that they can lead a drill, they are probably better placed to become operators IMHO.
Good luck

True sonofthebull, provided the OGA confirm in writing of course...
If the initial 3D is sufficient to make the drill or drop decision we are back where we started.
To drill a well we need someone to pay the majority of the costs.
To shoot more 3D seismic to entice a partner will be expensive and risky.
IMHO.

Thanks for the correction robs12,
In my opinion, without a farm in partner we will relinquish licence P2406.
311sq km of 3D seismic isn't going to be cheap, we need a partner with deep pockets IMHO.

...From what I can gather from the oga website the extension was agreed on the 29th of April.
Still no news on Platypus though...
In the west of Shetland, licence P2406 (Davaar) is still due for the drill or drop decision on the 1st of October 2021. Unless a farm in partner comes in at the 11th hour parkmeads interest in the WoS seems at an end for now.
All IMHO.

Licences P2400 (Skerryvore) and P2406 (Davaar) have had there phase A period extended by 12 months until the 1st of October 2022.
This means the partners do not have to make the drill or drop decision until then.

I would prefer to see the buyback cash put to work or at least held as cash until the winners of the 'future of energy' race become clearer.
We know RDS targets for 2030.
1. Growing gas share of production to ~55%
2. Doubling electricity sold
3. Operating ~2.5m EV charge points
4. Producing 8x more low carbon fuels than now
5. 25 million tons per annum of CCS(by 2035)
6. 120 million tons per annum of natural carbon sinks
We also know that the IRR from renewables, integrated gas and chemcials are around 10-18%
Whereas IRR from upstream is 20-25%
We are walking a tightrope, no doubt about that
The added confusion is that the tightrope is not fixed at either end... The goalpost keep being moved at every COP meeting.

Superb chart as always Boyobach, your efforts are greatly appreciated.
I am reassured to see that it would appear that if RDS continue to perform strongly there is plenty of room for upward movement.
Many thanks

The OGA have approved Dana's 50% Farm in to licence P.2382.
After the way Dana bailed out of Platypus despite getting an extension I can only assume this farm in was granted through gritted teeth!

We seem to be sticking rigidly to purchasing around 1.2m shares per day.
I can only guess this is one of the pre set parameters specified by RDS.
A more dynamic approach would surely be better?
As the share price falls, purchase more shares.
As it rises purchase less.
I am not a fan of buybacks, I would prefer to see that capital put to work.
Nevertheless, If we are going to do it we should be endeavouring to get as many shares as possible for our money.
GLA