Sdx Energy Share Discussion Threads

[tournesol] 17/4/2017 08:04

Thanks Del. It was not very original of me to get sick in Delhi, but I'm making up for my lack of originality by the energy with which I'm being unwell.

Rereading the announcement I noted:-


Paul Welch, President and CEO of SDX, commented:
"...It is clearly very encouraging to have made a gas discovery at the first of SD-1X’s target intervals. The 3D seismic data acquired and interpreted over the South Disouq concession has provided a very accurate view of the subsurface as the target interval has come in on prognosis. This provides us with additional encouragement for the deeper horizons where we are targeting oil…."

[deltrotter] 17/4/2017 08:02

Sorry to hear about the infection tournesol....

Not sorry to hear those figures you mention though....

[neo26] 17/4/2017 08:00

This is what malky said.. Very interesting day tomorrow, cantor will be very busy updating their broker note for sdx..

[tournesol] 17/4/2017 07:56

Please bear with me. I'm jet lagged and I'm in the grip of a very unpleasant infection acquired in Delhi last week. So my razor sharp intellect is temporarily blunted. Indeed one is tempted to suggest that I'm just going through the motions here. Or indeed the exact opposite. Either way my chances of making errors are elevated at present and the following might be baloney.

"...The well encountered 65 ft. of net pay section with an average porosity of 25%. The results are in line with pre-drill estimates…"

Edison's report from last August (available on the SDX website) is based on the pre-drill estimates and assigns a CoS of 13% to the South Disouq gas target and translates that into a risked value of 14p/share.

That would imply that the ultimate value of the gas discovery announced this morning is around 100p/share. (If 13% = 14p, then 100% = 107p)

If this is correct then adjusting Edison's valuation accordingly gives us a value of 160p

All sounds promising.

And the current drilling is still to reach the oil targets. Now if they come good we really will be off to the races.

E&OE

[hkr09] 17/4/2017 07:56

Started looking @ F types when HUR`s news hit doooh if this hits a quid the search will begin......GLA....Cheers Phil

[neo26] 17/4/2017 07:48

Yup!!!Interesting times...Thursday drop was unjustified mm's suckered out the weak....This will be near a pound come tomorrow...

[neo26] 17/4/2017 07:46

Of course, they have potential to increase production by drilling appraisal wells, let cash wake up he will tell you.Just check our the nooras field by eni.This is going to multibag this week....

[shakeypremis] 17/4/2017 07:45

So looks like TSX is open today.

[deltrotter] 17/4/2017 07:43

Are you sure the gas is worth that much to sdx, even if they hit estimates?

[pauliewonder] 17/4/2017 07:43

Get in. Great find. If it is accurate and oil is there as well we've done it. This will multi -bag. Can't wait for the open tomorrow. Have a cracking Easter guys, pardon the pun

[neo26] 17/4/2017 07:35

Dell thanks.. Party time tomorrow... :-)The gas is worth 20k-25k boepd to sdx..This is very very cheap now....This is transformational.... No wonder big players wanted to farm in...:-)

[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.