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Mole - no doubt that there is a background of uncertainty to every investment and corporate move at present, especially those associated with the price volatility of base commodities. Add in the eternal guessing game that goes along with exploration and the estimation of resources and their worth. I gather that you are veering towards the preservation of the status quo rather than the indulgence of an offer of any magnitude?

on both sites seem to agree that the prospect of a deal/merger would herald a very positive future for both companies. so - we get a downtrace of prices on the delt board and only sells on the iog site. does this imply that no offer will be made after all - or a limited one at best?

A well considered post trellis, and a timely reminder of known facts ref IOG as a counterpoint to speculation over bid levels. You are right that no element of desperation will drive the figures arrived at - if and when an offer for DELT is made. CalE will almost certainly be involved in the determination of the detail, and given a level that reflects the known quality and volume of the DELT resources, I would say that it is a case of opportunity knocks for both companies at a pivotal moment in their development.

Following most of the valuations and comparisons until I read the summary that IOG have "no resources"?? How did we arrive at that one?

our old friends Lombard have been selling healthy chunks of DELT, where they are also invested. It has helped to take the fever price down and looks weak at present, whilst we are hardening up on fairly slight volume. That tells me that the market is guessing a bid will come before deadline. We had a similar experience last year with the RRE derisory bid which was rightly refused, so think we would need to open at a fairly realistic level to get their full attention.

Looks like the market itself is reflecting the balance between the two participants here, with IOG hardening on very small volume, and DELT weakening on a larger turnover. This does not mean a deal will be done, but it could be reflected in the size of offer made by IOG - when it comes!

Good post Gold, with some points that pull some of the current speculation over the anticipated bid for DELT back into line. It is, for example, the first I have heard of IOG's proven gas resources being inadequate to take us through at least 15 years of full bore production? Also, the slight disappointments of the final assessments at Harvey and Skipper underline the risk element that pertains regarding final results after drilling at DELT's undoubtedly promising well assets. IOG has the expertise and the fully owned means of delivery, so I am firmly in favour of the much discussed offer with share weighting being made - albeit at a realistic level that bears no relation to historical share acquisition prices - and trust the BOD to engage full backing from CalE to execute a deal that enhances fulfillment of the project and serves the interests of the company's shareholders of every hue.

Most of them sit in the back offices of Banks, ticking off the days to their retirement package. This one, thankfully, is no power broker anymore, so counting beans will be the main occupation.

That is a very sound assessment of the detailed assets of DELT major, and a valuation of the readily available gas reserves should be key to the share offer that must now be undergoing some number crunching at both parties. Also agree with your conclusion that a fair price once determined would benefit both parties and both sets of shareholders.

Came up with the same net figure earlier - but its a buyer's market rather than a buyers premium at present. Much more engineering expertise at IOG, and the undoubted DELT assets, being adjacent to existing IOG well resources and Thames Pipeline become appreciably more valuable under merged company.

with that Mole. Said earlier that the DELT assets are considerably more valuable under the ownership of a merged or taken over company. Price determined has to be ruled by Buyers advantage in this market. Surprised that DELT has not kicked on a notch today - probably down to profit taking.

Not too much control I would hope, as IOG have far greater expertise in the extraction of subsea gas resources, and own the Thames Pipeline and Bacton Reception facility. They won't be desperate, but certainly keen as Selene and Pensacola fit rather well with their adjacent wells. I don't think they would bother with a derisory bid - more a sensible offer that would be subject to negotiation.

well spotted mole - thought I might shake them up with a mini-ramp! Like your calculations, but sure that 1.5p will not hit the spot. BadA might be closer to the mark - but that could be too much to pay and have confidence in the good housekeeping of this BOD.. Its going to be a long Monday - but pleased to see some Buyers returning to this share.

No - a Golden Eagle actually. So I was bound to pay attention.

required to stand any chance. Little bird tells me that 3.5p is more likely.

Thanks trellis - I like to stay optimistic and believe that there is every reason to be so with this company and share. Lots of action over on the DELT board tells the story, and if you have a taste for day trading the SP is up well over 100% in 3 days and hovering around 1.6p at present. Only a modest bid of 2.5/3p would see a nice turnaround here?

is IMHO a good time to trust the abilities of the IOG technical and engineering team, and the judgement and negotiating skills of senior management and the BOD. Once the viability and values are confirmed, I see very little downside to a considered bid for DELT, however the partnerships are shaped. These opportunities for expansion only rarely occur at totally convenient moments - but IOG now have the backing of a powerful financial unit whose ambition in the field of major gas supply to the UK market is already stated. One thing for sure is that these added resources become appreciably more valuable in the ownership of a company that is fully able to deliver them to the grid. Offer price and share weighting will be key to the longer term value of this deal, so will watch the immediate developments with great interest.

Mole - asset valuation and the final price are key to the success of the deal, and IOG have the massive advantage of control of the Thames Pipeline plus the financial clout of a BH company to back them. Once the fundamentals are confirmed as favourable, the deal fits perfectly with CalE ambitions to become a major player in the UK gas supply chain.

Having spent some time looking over our shoulders for a hostile bid for IOG, the tables have turned dramatically today with an RNS published on both company sites outlining a possible bid with shares weighting for the fellow North Sea Gas explorer. Brokers Allenby rate the company value at somewhere between £146m and £276m - vastly outstripping the current market cap of £21m. October 9th is the deadline for a formal bid to be made - and the reaction and impact has been considerably higher on the DELT board, with a 40% rise in SP today. Gas values in wells such as Selene and Pensacola are substantial, and will look at the convenience of links to the IOG resources and Thames pipeline. This is only a possibility owed to the backing of CalE, and an exciting one. Zero reaction on this site, which is something of a surprise - but would like to read the response to the practicality of this move from regulars.

That's no surprise as other LTHs will tell you there is so little downside here and now in this share. It's the fully funded aspect which makes this so unusual in its sector, so just a little patience required from investors that do their homework on the IOG project and financial status.