 Andrew Nunn, CEO, commented:
"I am pleased to report that the Selene discovery well was completed safely and within the carry resulting from the farm-outs to Shell and Dana. Getting JV agreement on moving into the Second Term of the licence is another key milestone on the journey from discovery to development for Selene. It also reflects the high quality nature of Selene's reservoir and the expectation of a low cost development with enhanced production and economic potential from the asset.
This decision to move into the second term of the licence kicks off an incredibly busy period, as we support the Operator through the various engineering, environmental and regulatory workstreams that need to be pulled together to support a potential Final Investment Decision. The workstreams now in train are an important signal to our investors as you wouldn't commence this process if you didn't believe there was a material commercial return at the end it. We look forward to updating the market in due course." |
Cannacord ..
We make a substantial upward revision to our initial risked NPV10 Selene discovery valuation. That increase reflects a number of adjustments to our earlier projected production, capex and opex assumptions and profiles, and significantly, full inclusion of the £57m tax asset reported in the company's H1 24 results. The combination results in an increase in our modelled net Deltic unrisked NPV10 value to $56m (from $41m), which compares with the company's assessment of $61m.
As a result we increase our risked NPV10-based target price to 38p (from 30p) and we maintain our Speculative BUY rating, noting the balance sheet limitations evolving in 2025. |
Another 80k for me at 5.7p.. |
This is what it's worth at FID per their modelling. I suspect they will either sell this to fully exit or farmdown some of their 25% for cash and a carry on the residual stake.Think it's better to sellout altogether given the timelines involved. Nevertheless, very positive the JV is moving Selene towards development.Cash |
50 Pence?
Reminds of that famous rapper: |
So does that make this a potential 10 bagger. |
I wonder who will buy this and when? |
"This preliminary economic evaluation indicates that the P50 discovered volume is more than twice the minimum economic field size and in the proposed assumed development scenario, Selene would have a post-tax NPV10, net to Deltic, of $61M (50 pence/share equivalent) which supports Deltic's decision to support the entry into the second term of Licence P2437 and progress the work required to reach FID" |
Shore have been the main MM on the offer all week and a bit more. They've been squeezing the price down to get the shares offloaded. The 600K trade at a low price is probably them dealing with either a distressed seller or possibly the latest director's departure.I'm rather hoping they're done. |
It will be Viaro (not Shell) who clearly have a different attitude to the southern North Sea . |
Shell won't be here...they'll have probably naffed off to the Nasdaq... |
Shell to play the long game and wait till the share price drops to, say, 2p, and then buy out Deltic for 2.5p ? |
I see Apache are pulling out of the North Sea...curiously by 2029...if current trends are to go by..the same year Labour will receive a crushing defeat...meanwhile...Miliband is on a mission.. |
For sure it is but in the UK we are still in a small caps bear market. |
Someone please tell me Selene is at least worth more than the market cap...:-( |
A merger with a cash generating Oil and Gas Producer seems the only option with this company now, or sell to the highest bidder. That way management costs can be reduced accordingly. Their whole business model is a failed one, and they need to be honest about it. The directors cannot expect to sit around all day taking a salary without providing any value to shareholders. It would be interesting to know what Michael Spencer thinks of all this. Is he happy to carry on with this company continuing on in this fashion? |
Just done a quote. Can buy cheaper than selling it at the moment lol. |
This one looks like a dead end. |
Reba- No income, not much cash and a need to fund or sell Selene.Expanding into US and/or Africa as mentioned in Upstream today, cannot be done without cash or by issuing shares to third parties (or a fundraise).They need to consider a merger or two both to cut overall management costs but to broaden the portfolio. Any two other listed merger candidates you can think of with assets in the US and or Africa, with a useful UK revenue stream?? It'll only require one management team and Board rather than three at 1mm+ GBP each. |
Just bought 50k at 5.14p.
Very surprised I could get that . |
hell of a spread on the share price WHY? |
Again, nothing new to those already here, but a decent summary none the less and a bit of exposure beyond these boards.....htTps://www.thisismoney.co.uk/money/markets/article-14038625/SMALL-CAP-IDEA-Deltic-Energy-gas-discovery-marred-windfall-tax-hike.html |
The 2 tugs mentioned earlier are now being joined by big brother with an adequate bollard pull. See revised post #840. |
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