Sdx Energy Share Discussion Threads

[soulsauce] 18/4/2017 07:34

Nice comments from PW ;-)

[neo26] 18/4/2017 07:33

Next few weeks will be fun and games...

[csjcsl2] 18/4/2017 07:22

gas discovery coming in at pre drill estimates, 3d seismic data has provided a very accurate view of the subsurface as the target interval has come in on prognosis..fantastic news well done sdx

[neo26] 18/4/2017 07:01

Here it is, :-)

18 April 2017
 
SDX ENERGY INC.
 
("SDX" or the "Company")
 
Update on SD-1X well
 
Gas discovery at initial target depth, drilling continues to lower horizon
 
 
SDX Energy Inc. (TSXV, AIM: SDX) ("SDX"), the North Africa focused oil and gas company, announces that drilling on the carried SD-1X well at its South Disouq concession, where it holds a 55% equity interest and is operator in the Nile Delta area of Egypt has reached its first target depth.
 
The SD-1X well is targeting gas in the upper Abu-Madi section, and oil from the deeper Abu Roash and AEB horizon.  
To date the well has been drilled to a total depth of 7,777 ft. reaching its first target depth in the Abu Madi.  The Company is pleased to announce that during drilling, conventional natural gas bearing horizons were encountered in the Abu Madi.  The well encountered 65 ft. of net pay section with an average porosity of 25%.  The results are in line with pre-drill estimates. Additional evaluation work is currently underway to provide an accurate recoverable volume estimate which will be the subject of a subsequent release.
Drilling will now continue to the deeper Abu Roash and AEB sections, targeting oil.  SDX will provide further updates on the drilling campaign in due course.
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.  Any production testing of the Abu Madi or one of the deeper horizons will be undertaken after drilling operations have been completed and the rig has moved off location.
 
"South Disouq is one strand in the SDX story.  We have a diverse portfolio of assets in Egypt and Morocco, including further exploration opportunities.  Irrespective of whether we have further success at SD-1X in the deeper horizon, this gas discovery and the ongoing development and facilities upgrades across our asset portfolio mean that we remain on track to build our production profile and maximise the value from our producing, development and exploration asset base.  I am optimistic about our ability to deliver for our shareholders and also in the deeper sections of this well and look forward to reporting on our results in due course."

[neo26] 18/4/2017 06:56

the three oil horizons are within 2500ft now, I suspect within 2 weeks we will know, that is a bonus now.

The gas was the key, don't forget they have another drill ready well which is called sd-1 deep, this has greater potential for oil.

Next few weeks are going to be very interesting, Paul Welch has been very positive on SD, credit goes to him...

Interesting to what Malky says in his blog today, last time he said if they strike gas here they target is 100p..

[cashandcard] 18/4/2017 06:47

tgg,I think it was merely an interim update to confirm the main target came in as prognosed. I think they will clarify later on liquids content to this gas etc. I would be surprised if there was none. Most of the Abu-Madi discoveries in this trend have demonstrated condensate and/or NGL's to surface with the gas.Mind you, they expect this spot (at deeper levels) to be in the oil window so could be fireworks.Cash

[deltrotter] 18/4/2017 05:54

Tgg, 100% agree with your statement about a leaky ship. Was going to say it myself yesterday.

That is a truly professional sign of the professionalism and values of the company imo.

[jas1234567] 18/4/2017 00:27

If you would like to talk/rant about a company good or bad I can publish your article for you.

After published you will then have your own link to share on Twitter, Bulletin Boards or any Social Media.

Check link for contact details.

hxxp://gravystock.website/submit-your-articles-to-gravy-stock-publishing/

[thegreatgeraldo] 18/4/2017 00:20

PS. Major bonus, in my book, is that Welch doesn't run a leaky ship!

[thegreatgeraldo] 17/4/2017 23:49

Hadn't realised the TSX was open today, but then got the Stockhouse market report in my inbox, so had a quick peek at my canuc stocks...... very muted reaction to the SDX news..... Of course, only gas is mentioned - no mention of condensate - & the Egyptian gas price, to use a technical term, is rubbish. Suspect SDX will do better than 16% at the open over here in the morning. Kicking myself for missing the opp today to top up in Toronto in the low 90's.

[pauliewonder] 17/4/2017 22:38

If it stays at 56ish then that's ridiculous because they touched around 55 10 days ago. We should be nearer £1 given that the whole area and drilling programme is now somewhat derisked. Much more confident that they will strike oil as well. So in my view it's not just about one off large gains. Don't get me wrong they are great, but I see ongoing price increases from here with continuous news taking us beyond £1 and ten beyond £2.

[bountyhunter] 17/4/2017 21:59

Neo, I'm just talking about the open, I also expect it to go higher after that! ;~)

[neo26] 17/4/2017 21:57

BountyDon't compare us to the Canadians, volume is always low over there, we have more on a bad day.This news is huge for us.. Sit back and watch this rise the next few weeks...

[plentymorefish] 17/4/2017 21:45

I think there will be a lot of buyers at that price. I will be topping up as I think it will go much higher over the coming days

[bountyhunter] 17/4/2017 21:41

closed up 16.5% in Toronto so I would expect the LSE open to be around 56.5 / 57p

[bountyhunter] 17/4/2017 21:31

I assume that the £4 related to a different company since cancelled (Sondex plc) with the same ticker code since the following news release is dated 20/05/2016

[rackers1] 17/4/2017 21:11

Someone pls explain why the large sell off last year from over £4Thanks

[potential] 17/4/2017 20:57

Massive day tom and that's one of many to come for SDX... I expect it to smash 60p for a start!!!!!!

[tom111] 17/4/2017 20:42

unexpected surprise gl everyone tomorrow

[bountyhunter] 17/4/2017 19:56

trading volumes creeping up in Toronto with the market open another hour or so (+ any late trades to be added)

[bountyhunter] 17/4/2017 18:57

includes a map:

[cashandcard] 17/4/2017 18:15

I am splitting hairs about the fact we still have no numbers for undiscovered resource potential on the block.

Like Hurricane - the area itself starts to get derisked. Malcy hinted at potential of the block being significantly higher than 100p. No doubt, he will be into it tomorrow for the bucket list.


Cash

[tournesol] 17/4/2017 18:10

In practice of course the market is likely to bubble up tomorrow and it is entirely possible that we will see a rerating to 80p and possibly 90-100p. I will not be unhappy with that.

In fact I'll be giving serious consideration to topping up first thing.

If we look further ahead there would seem to be scope for a price rise towards 150-200 in the not too distant future if things continue to go well.

Reminds me of early days in Dana, Soco, Burren, Hardman and various other happy experiences of my distant youth.

Enjoyable nostalgia.

[cashandcard] 17/4/2017 18:10

Tournesal,Yes, take your point, missed that - well actually, did not preclude 12p when it should have been. It's certainly not 107p (not splitting hairs ;) Let's see what the next few weeks brings. If there is deeper oil, we are as you say, off to the races.Cash

[tournesol] 17/4/2017 18:05

Cashandcard

You said
"...On the 3rd April 2017, Edison updated their CoS to 20% and risked valuation for SDX on this well to 12p - so I make it 60p unrisked, which would take us comfortably over 100p in core value from where we sit today…."

Not splitting hairs, but remember that there was already 12p in the share price for S Disouq before today's news. So within the parameters of the Edison valuation, today adds "only" 48p to the valuation ceiling. So it isn't "comfortably over 100p".

And even a solid discovery does not mean that the CoS is now 100%. It's probably something like 75-80%. Then we get an appraisal and that boosts the CoS to 85-90%. Then we get a development and that takes the well into production and boosts the CoS to 100%

The ultimate valuation boost will see the whole of the 60p asset value being added to
the total value of the co but it will be phased in and will take more time.