NPV calculations reflect the tax regime as announced in the October 30, 2024, UK Budget.
Note, the post-tax NPV includes a £59m tax credit which Deltic can use once Selene is online.
Consequently, Deltic will not pay EPL (Energy Profits Levy) and minimal Corporation Tax based on current Selene tax modelling.
(Allenbys comment on Selene a few months ago..)
Forgot to mention this which is a sweetener alongside Endymion and Blackadder at the Corporate level. |
Yep. Totally agree. Viaro are hungry for acreage.Deltic's fortune probably lies there. Upwards of 22p a share. |
My bet is still on Viaro to pounce once they get the Shell/Exxon deal over the line later this year.A few director buys now this update is out wouldn't go amiss. |
Much better RNS but I do think their options are limited and it will be very tough.
All the best to them though - they've been shafted by the Government. |
 Canaccord Genuity view
It's clearly positive that the Selene project still stands up as a significant gas development opportunity following much more detailed post-well analysis. More work is ongoing but the technical/economics signs are very supportive of a commercial development. The key challenge is to deliver the partner commitment and overall funding for the project, and the company indicates that it has enough financial resources (YE24 cash of $1.4m) to progress the various options. Just as significantly, in our view, is the sense of an approaching greater political pragmatism towards the UK North Sea's oil and gas future. We think that provides a more hopeful backdrop for Deltic (and others) than for some time. Sourcing Selene funding still presents a challenge, but in our view the overall market value discount to even our risked Deltic valuation is excessive.
We maintain our SPECULATIVE BUY rating and our risked NPV10 based target price of 33p.
Bit of a daft target but I was happy to buy more this morning at 3.3p to take me back to 100k and now I'm in profit overall.
My target is 8 to 10p as it has been for a while .
Something will turn up even in this market,GLA. |
Completely agree with his last sentence. |
Andrew Nunn, Deltic CEO, commented:
"The magnitude of the divergence between Deltic's share price and the Company's valuation of its stake in the Selene Gas Project is clearly a cause of frustration for both shareholders and the Board, especially given the quality of the asset and commitment of the JV partners. The Board considers that actions taken in late 2024 to reduce ongoing G&A costs, and Deltic's previously communicated year end cash position of £1.4m, provides the Board with sufficient flexibility to progress potential funding options to enable the business to move to Selene FID and beyond.
There has now been a period of stability in the UK oil and gas industry following the UK Budget in October 2024, and while the overall environment remains extremely challenging, we believe there has been a slight improvement in sentiment towards the sector. Deltic, and in particular our Chairman, have been and will continue to provide leadership and input into industry-led initiatives to educate government, ministers and other stakeholders on the environmental, employment, economic, and energy security benefits of producing oil and gas from UK waters. As recent events have demonstrated, it has never been clearer that a secure domestic energy supply is a vital national asset and Deltic's work could be a key contributor to delivering that for the UK in the coming years." |
Funding Options
Deltic is currently evaluating a number of options, both at the corporate and asset level, which should allow it to secure the funding required to meet its medium-term requirements in relation to the Selene development. The options under evaluation include, but are not limited to, a further farm-down of Deltic's current equity position in Selene, a partial sale of its interest in Selene, a pre-payment against future gas sales, and seeking to add new strategic shareholders to the Company's register.
This is a key area of focus for the management team and board as the Company determines the best way forward for the benefit of all shareholders. |
Operational Update
Deltic Energy Plc, the AIM quoted natural resources investing company, is pleased to provide the following operational update in relation to its portfolio of UK gas development and exploration assets:
Highlights
· Post-well analysis and pre-Field Development Planning work on Selene Gas Project underway
· Selene gas project NPV10 of USD$58M, net to Deltic, based on updated economic model
· Selene project - Endymion prospect maturation demonstrates low-cost upside on block
· Farm-out process on Blackadder licence commenced
ETC.... |
Clearly apart from Nigel Farage and Reform nicking all their voters they also have the trade unions on their backs due to all the very many job losses....
Perhaps it makes sense to keep 'em peeled.... |
North Sea oil and gas operators are also facing a ban on new drilling licences, which experts say will accelerate a decline in production.
Rising energy costs risk industrial ‘extinction217;
Elsewhere, The Telegraph disclosed last month that chemicals manufacturers have warned ministers that sky-high energy costs are pushing their industry to breaking point.
Companies including Ineos, Dow, Johnson Matthey and Croda warned that further plant closures were “inevitable221; unless the UK became more competitive, in a letter coordinated by the Chemicals Industries Association.
Sir Jim Ratcliffe, the billionaire owner of Ineos and Manchester United, has warned of industrial “extinction221; unless action is taken to make the UK and Europe more attractive.
Labour ministers are also under pressure from their union supporters to explain how jobs threatened by net zero will be replaced.
Gary Smith, the leader of the GMB, has warned green policies are “hollowing out working class communities”, while Derek Thomson, the Scottish regional secretary of Unite, said the closure of Grangemouth raised questions about the Government’s plan to ensure a “just transition”.
Mr Thomson told The Telegraph: “For a just transition to take place, we have to protect workers and transition in a way that allows us to create new jobs.
“If you close [the Grangemouth refinery] now, does it actually contribute much to global emissions?
“Becoming an import-only country, that’s a devastation of manufacturing. And there is no plan to start building wind turbines in Scotland.
“There’s no plan to do steel. There’s no plan to do anything to replace that manufacturing base.”
A spokesman for Mr Miliband’s department insisted claims of a division were “untrue”.
She added: “Our mission to become a clean energy superpower is the economic opportunity of the 21st century and one of the Prime Minister’s five missions, which the whole of Government is united behind delivering.
“We received a boost of 35pc, or £3.6bn, in last year’s Budget, one of the largest annual increases in the history of the department and its predecessors – and announced a multi-billion-pound investment to kickstart growth in carbon capture and lead the world in a ground-breaking clean energy technology.
“In addition, the Prime Minister made a transformational commitment to the Grangemouth community, announcing an additional £200m to support investment in the long-term future of the site.” |
“It’s the UK’s net zero policy which will actually create jobs and investment on the site,” they added, referring to hopes that Grangemouth could be repurposed for the production of sustainable aviation fuel.
The source also pointed to a recent report by the Confederation of British Industry that argued there was no trade-off between economic growth and climate policies.
But that view has been challenged by other businesses and experts, with an analysis by Peel Hunt this week warning that a slide in living standards appeared to be closely linked to the shift towards net zero.
Labour’s election manifesto promised a “Green Prosperity Plan” that would create 650,000 jobs across the country by 2030, the year Mr Milland has vowed to deliver a clean power system.
He has promised this will involve “backing our proud manufacturing, coastal and oil and gas communities with good jobs, skills and private sector investment”.
However, a report by Sir Tony Blair’s think tank last month raised doubt about the jobs claim, arguing the green energy industry was only likely to employ 425,000 people by 2050 in a “best-case scenario”.
The Cabinet disagreements underline what businesses say is a growing tension between net zero policies and competitiveness in certain parts of British manufacturing, particularly those most exposed to gas and electricity prices. |
It comes amid mounting concerns about Britain’s anaemic growth – with a sharp slowdown since Labour came to power – and unease around the speed of the switch to net zero compared to other countries such as the United States.
‘Dash for growth’
Mr Miliband is reportedly at risk of losing his job in an upcoming Cabinet reshuffle. It has been suggested that Sir Keir Starmer will sideline net zero in a “dash for growth”.
One Whitehall source stressed that the Cabinet disagreements were not personal and amounted to a “genuine intellectual debate” about how to ensure the switch to green energy was used to boost the economy.
They said: “It’s about competing priorities. There is a jobs-first group of people who very much believe that the point of the green transition should be to reindustrialise Britain.
“But there’s another group that is less concerned about where things are made and more with cutting carbon.
“Ed has a mandate to cut carbon but others have a mandate to grow the economy and boost manufacturing – the question is how you square that circle.”
They claimed that the concerns about manufacturing jobs were also shared by officials in Downing Street, including Morgan McSweeney, the Prime Minister’s chief of staff.
A source close to Mr Miliband declined to comment on internal conversations.
However, they said the Government’s actions demonstrated continued support for its green energy mission, including increased budgets for the energy department and £200m of funds to support workers made redundant at Grangemouth.
“This Government’s policy is to use decarbonisation opportunities to drive investment,” the source said, arguing that Grangemouth shut due to “global factors, not net zero”. |
Miliband clashes with Reeves over net zero promises
Energy Secretary accused of undermining growth with push to cut carbon emissions
Ed Miliband, the Energy Secretary, is reportedly at risk of losing his job in an upcoming Cabinet reshuffle
Ed Miliband is facing a Cabinet backlash led by Rachel Reeves over his net zero plans, amid concerns they risk hampering growth and will threaten thousands of industrial jobs.
The Energy Secretary is understood to have received pushback from ministers including Ms Reeves, the Chancellor; Jonathan Reynolds, the Business Secretary; and Heidi Alexander, the Transport Secretary, following recent clashes over electric vehicle sales targets and the closure of a major oil refinery.
Behind the tensions are fears that Mr Miliband’s department is pushing too hard to cut carbon emissions, which is hurting the competitiveness of key industries such as steel, carmaking and chemicals, according to sources in business and Whitehall.
For example, the closure of the Grangemouth oil refinery, in Falkirk, will lead to the loss of nearly 500 jobs in April and has partly been blamed by owner PetroIneos on an upcoming ban of new petrol cars from 2030.
Elsewhere, a string of chemical plants have been closed or put at risk by rising energy prices – with those in Britain the highest of any developed economy.
Calls to relax the zero emission vehicle (ZEV) mandate, which forces a rising proportion of carmakers’ sales to be electric, have created another flashpoint. |
"Miliband is facing a Cabinet backlash led by Rachel Reeves over his net zero plans, amid concerns they risk hampering growth and will threaten thousands of industrial jobs."https://www.telegraph.co.uk/business/2025/03/04/miliband-cabinet-rebellion-net-zero-promises/ |
rambutan224 Feb '25 - 21:52 - 956 of 966
Not a holder, but noticed the recent share price fall and read the last rns. As a follower of investment trusts I know that Henderson Opps (HOT) is in the process of being wound up, and I remember that it held Deltic. So, that's your answer, nothing shady, just a forced seller. |
Plus the UK Budget on the 26th - unlikely perhaps but Starmer has made some very recent comments....just saying! |
Has the large institution confirmed or are you all just guessing? |
The motivation for the large insti sale was generously explained by an earlier poster. Seemed quite plausible. |
It is never a risk selling! That's a truly odd way to look at it. |
Big risk selling imv |
They are in no position to negotiate - that's the trouble.
I suspect the large sale a week ago was that same realisation hitting. It's never pleasant when you take a big loss but better to accept something than nothing. |
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