Sdx Energy Share Discussion Threads

[neo26] 17/4/2017 07:25

The 3 d has been very accurate... No wonder big players wanted to farm in...I said it last week, wouldn't want to be out over the long weekend... :-) This is huge for sdx...Sdx believes there is 300-400 bcf of gas.. Now the oil... :-)This will double...Its easter Monday, tsx will not open?

[deltrotter] 17/4/2017 07:19

Tsx in Canada open today so will be interesting to see how they react

[simonparker5] 17/4/2017 07:18

Great find tournesol thanks. It will be interesting to see how Canada opens this afternoon.

[deltrotter] 17/4/2017 07:18

Tournesol , you beauty!!!!

Clickable link:



Pw is very confident of oil next it seems....

[tournesol] 17/4/2017 07:14

GOOD NEWS

South Disouq - successful gas discovery announced this morning at first target zone - drilling still continuing to test deeper oil targets.

SDX website has just posted an announcement saying above - see

www.sdxenergy.com/~/media/Files/S/Seadragon-Corp/press-release/press-release-2017/SDX%20South%20Disouq%20Abu%20Madi%20Results%20Success%20Final_17042017.pdf

surprised that there is no RNS yet but that's probably because of the bank holiday.

need to dig out the valuation model and review implications.

[someuwin] 16/4/2017 20:00

FARM-INS & FARM-OUTS ARE SHAPING OIL BUSINESS DYNAMICS

Interview

By Nataša Kubíková, Salma Essam

In an exclusive interview with Egypt Oil&Gas, AHMED FARID MOAAZ, Country Manager of SDX Energy Inc., discussed the rationale of oil and gas companies behind farm-in and farm-out deals...

[deltrotter] 16/4/2017 13:51

Agree to all of that cash - within 6k of a pipeline... in production in 90 days (possibly).

Lets hope they find something.

[cashandcard] 16/4/2017 13:42

del,

The real pull of this play is not just (large) resource potential - it's the speed with which it can be brought online. Majors and midcaps are looking at short-cycle/quick-turnaround for their capital. Exxon's new boss mentioned that as a key part of their forward strategy. Hence the move to plough more capital into shale above $50/bbl.

Let's look at Egypt - in particular the Abu-Madi Baltim play SDX is pursuing.

I posted some days ago, Eni managed to connect up the Nooros field (Abu-Madi baltim trend) from discovery to production within 1year. It has been 15-16months and the Nooros field (530bcf, thus far) is breaking new production records. They also produce liquids. ENI is targeting production from Nooros of 1bln scfpd (equiv) by year end 2017.

Keep in mind the short-cycle/quick-turnaround strategy for capital, It's little wonder the majors are racing to exploit this onshore delta area play.

It has very favourable attributes. Largely drilled from the onshore, minimising development costs. The resource and reserves potential are top-tier when compared to onshore cost signature. There is scope for a scaleable play with satellites exploitation and development.

Its near abundant infrastructure including pipelines and treatment facilities. Also, its on the doorstep of an energy hungry market. The Egyptian government are increasing the price paid for gas, albeit slowly. This all makes for an excellent economic case - with the added benefit of rapid cash flow generation and payback.

The speed with which operators are getting discoveries to production in that area is similar to other 'short-cycle' plays like shale in the US, which can go from discovery to production in a matter of 3-6 months. In these times of careful capital management by the industry, it's a good place to plough cash into.


Cash

[deltrotter] 16/4/2017 12:42

Thanks Cash

[cashandcard] 16/4/2017 12:10

deltrotter,The Kafr El Shaikh is prolific in the delta region. Whilst the Abu-Madi and the oil zones are the main targets, the discovery of a gas-charged KES sand would be welcome news. It would enhance the overall block potential.Cash

[soulsauce] 16/4/2017 10:22

Excellent post del cheers.

[deltrotter] 16/4/2017 10:07

Hmm, couldn't remember seeing this graphic before:



and it led me to look into Kafr El Sheikh. This came up with both the formation and the region.

Not much mention here ever about the Kafr El Sheikh shallow formation that SDX should have long passed hit. Any reason?

Anyway, here are a couple of links / news items of finds in the region of SDX's South Disouq drilling:




Dana:



and this:

New Dana Gas discoveries expected to double Company’s Egypt gas reserves

​
Salma-1 discovery set to add over 200 billion cubic feet of gas

Sharjah, 12 January 2009

Dana Gas, the Middle East's first and largest regional private sector natural gas company, has announced that its current drilling campaign in Egypt has led to yet another significant gas and condensate discovery at its Salma-1 well in its Nile Delta Concession.

The news follows closely on last month’s announcement by the company of a significant discovery of gas and condensate reserves, estimated in excess of 130 billion cubic feet (bcf) of gas, at its El Basant-2 well, also in the Nile Delta Concession.

The Salma-1 well is the Company’s second well drilled in the West Qantara Concession, approximately 15 kilometres from Dana Gas’s South Manzala gas processing facilities. It was spudded on 1 December 2008, reaching a total depth of 2,231 metres. The first production test on the well was initiated before the end of December 2008. The well penetrated 25 metres of net pay in the good quality sandstone reservoir of the Abu Madi formation, and additional reserves are currently estimated to exceed 150 billion cubic feet of gas. An additional four metres of sandstone gas pay was encountered in the shallower Kafr El Sheikh formation.

“We are very pleased with the results of Dana Gas’s aggressive drilling programme last year, and the excellent results yielded by the Salma-1 well definitely call for more exploratory drilling in the area, where there are several similar prospects which we will be planning soon,” said Mr. Ahmed Al-Arbeed, Dana Gas Upstream Executive Director. “These discoveries have already achieved the ambitious targets we set for 2008 and will potentially double the Company’s reserves in Egypt, setting a strong foundation for further growth in reserves and production.”

Dr. Hany Elsharkawi, Dana Gas Country Director for Egypt, added: “So far, the first production test has produced 17.2 million cubic feet of gas per day and 415 barrels (bbls) of condensate per day through a 36/64” choke, giving a total of 3,280 barrels of oil equivalent (boe) per day. A second test in a shallower Abu Madi reservoir zone will be carried out once the first production test has been completed, and we are also preparing a development plan, which will include several appraisal and development wells for Salma-1,” Dr Elsharkawi continued: “A testing programme is currently underway to test all hydrocarbon potential zones for this discovery and determine the total volume of the new reserves in the area, which are currently estimated to exceed 200 billion cubic feet of gas.”

Dana Gas ended 2008 with a daily production rate from its Egyptian operations of 31,640 boe and an average annual rate of 28,900 boe. Dana Gas’ aggressive drilling programme in the past year has yielded multiple discoveries in different areas of its Egypt concessions, significantly enhancing the Company’s reserves. Consequently, both production rates and asset valuations are set to be enhanced in 2009.​

[deltrotter] 16/4/2017 07:47

Yup, only Dr drill knows what is down there and he will tell us soon enough.

But in this game you at least want to try to stack your odds in your favour. They are drilling in a prospective area, they have the 3d which has enabled them to choose the most favorable location for success, and they have staff and a partner who know the area well and have experienced success in it.......

And over and above that, this company is a producer that is generating huge, for its size, free cash flow each and every day, and with potential too increase that substantially.

A cracking little company in my opinion.

[tournesol] 16/4/2017 07:09

Hi Lauders, think we are on the same page here.

T

[lauders] 16/4/2017 00:34

tournesol - Thank you for bringing a bit of reality to the situation and lowering the expectations to a realistic level. Dangerous to get too worked up until actual results are released. If there is a drop in share price next week or perhaps later I hope I have the funds to take advantage and increase my holding. Don't think I will quite reach your 5% level but I have quite a lot already invested by my standards.

[neo26] 15/4/2017 23:29

ToursolFair point sd1x is not a certainty, the original cos was 13%, but PW said it significantly increased.I think its close to 50% now, worth mentioning big players wanted to farm in even when we already had a partner after upgraded 3d . So that bodes wells...

[cashandcard] 15/4/2017 23:20

This was a media article. Journos are not oil industry specialists. They were reporting on something likely leaked to them from the ministry re a seismic shoot. They called it a discovery. Of course its no such thing until its been discovered with the drilling. They have undiscovered potential resources, not resources OR reserves until a discovery.



Jeez - I can't believe I have to explain this. It was a media article with some clues!



Cash

[tournesol] 15/4/2017 23:09

There's no such thing as "reserves based on seismic". The term "reserves" applies only to oil discovered by exploration drilling AND then validated by further appraisal drilling and perhaps production testing. The news report that is getting people lathered up is ill informed and empty speculation possibly derived from ignorant comments made by politicians/administrators who are simply expressing their hopes.

Also there is too much empty optimism being expressed here about the current drilling, IMHO. AIUI the CoS is about 30% so that means the most likely outcome is a duster.

It's actually 2 to 1 against a discovery being achieved.

I have a large holding in SDX because I think it is very underpriced and will over the next few years achieve a very substantial return for the patient. But none of that makes it in any way sensible to raise false/premature hopes based on badly written reports of claims made by people who know nothing about the subject.

Patience and realism are more useful here than empty headed over-optimism. If you over egg your expectations then you will simply make people more disappointed when they fail to eventuate.

Just be patient.

[cashandcard] 15/4/2017 22:56

Gisjob,It seems someone in the Egyptian ministry of petroleum has leaked to the media a recent seismic surveys outcome. Now SDX's seismic survey was completed some time before 23rd Feb and of course, requires actual drilling - the article clearly states that. More importantly it locates the area and makes reference to the company being in phase 1 drilling, which they need to complete before end of year.It could all come to nothing but the clear markers point to 2-3 companies, of which SDX is right up there. Due to the fact SDX's seismic shoot was in the corner of a massive block - some miles south of Mahalla city - its very-close to the stated location, they (SDX) completed 3D seismic and needed to follow up with drilling to confirm resource and reserve potential. They need to complete phase one before the end of 2017. Uncanny coincidences with the company in the article?It could all be an enormous coincidence - but other than SDX, BP/Dana and Dyas, I can't find anyone else who would tick those boxes.As always, the drillbit will do the talking. I am looking forward to nextweek.Cash

[neo26] 15/4/2017 22:24

Gisjob

If you read the article it states a gas find based on seismic, they are not talking about oil fields. The source is from oil and gas ministry..

[gisjob2] 15/4/2017 21:45

Neo, just pointing out you can't prove any new oil field from seismic data. Need to wait for drill results. The article was from 23rd of Feb so has no Link to the current drilling. We were well aware of the encouraging seismic from the company themselves so the article doesn't add a lot. I own a few shares in this so really hoping the encouraging seismic is bourne out with the drilling. Bought in due to the circle deal and the extremely low production costs here. Would love a new gas find this week too.

[neo26] 15/4/2017 21:09

Tom Sou are two years from production, whereas sdx are already producing, sdx got a ready made asset in Morocco and they own a pipeline. The asset made $13m freecash flow last year on 4.5mmcfd of gas, the company believe they can 4 fold this and current pipeline allows to increase production. If they increase 4 fold and we use current price they receive per MCF then that is $52m freecash flow per year. This is outstanding, by year end they expect to double production to 9 mmcfd.I think sdx is one of the best oil stocks in aim at the moment, they are not only relying on exploration like many do, all infrastructure is more or less set to increase production.

[pauliewonder] 15/4/2017 20:48

I like VOG too and was in SOU but the momentum has all gone and possibly looking to get a lower entry at some point in the future.

[tom111] 15/4/2017 20:43

I prefer imo this co to vog or sou more diversified

[neo26] 15/4/2017 20:16

CashAnd.... Sdx still not released seismic data for SD but have stated COS has significantly increased.I only see this as positive...