Sdx Energy Share Discussion Threads

[public heel] 29/5/2017 20:00

The NR said "dry gas". Dry means no liquids. So did they screw up in saying they expected up to 70 bbls/mmcf, or did they screw up in using the word "dry".

You'd think that they'd get something like this right, or at least be quiet about it. At 70 bbls/mmcf, the liquids could be more than half the value.

[brasso3] 29/5/2017 19:59

TGG

I was using conservative production numbers of 7000 - 9000 BOPED for 2018!

Do you think after this massive success at SD they will just stop and settle for 26 MMCFD?

I expect there will now be 2 or 3 more wells there in the next 12 months.

To make a big issue about the government royalty is pathetic considering we have a commercial gas discovery of 150 - 300 BCF just announced.

[cashandcard] 29/5/2017 19:58

ThelargerKhan,$3.50-4.00 is what they'll receive for gross sales gas before government take. The actual realised netback (per therm) to the company is $1.00-1.22 as evidenced in annual and quarterly results.Cash

[tom111] 29/5/2017 19:52

u hope lol

[thegreatgeraldo] 29/5/2017 19:50

Brasso3, "$127-164 million in revenue"

Show us your figures, then we can all have a good laugh & move on.

[saw89] 29/5/2017 19:45

Expect we still need results from further testinf and the CPR before a rerating, this will be a few wks I understand.

[thegreatgeraldo] 29/5/2017 19:22

Answer the question - where does your "$127-164 million in revenue" come from?

[brasso3] 29/5/2017 19:08

26 MMCFD = 4400 BOEPD. Net to SDX that is 2420 BOEPD.

They state in the RNS that 26 MMCFD is due to the facility/ equipment restriction. Who knows what peak flow rates could be on this well with such high porosity (25%). They were very certain of the condensate too a few weeks back so I think that news is also yet to be released.

[thegreatgeraldo] 29/5/2017 19:03

You seem to be talking about mythical gross revenues, before the Egyptian govt take. Otherwise, where does your "$127-164 million in revenue" come from? Care to share your sums? I've seen your ridiculour suggestion for SD-1X already.

[brasso3] 29/5/2017 18:56

Are you looking to temper this so you can buy in the morning?

[brasso3] 29/5/2017 18:55

TGG

I am merely talking about revenues which was very clear from my post.

- We are currently producing 4000 BOEPD.
- SD1X will produce around 2000 BOEPD net to SDX.
- 7 more wells are due this year in Morocco.

I think 7000 - 9000 BOEPD is a fair estimate for next year.

[thegreatgeraldo] 29/5/2017 18:48

Brasso3 - do you not understand the basics of the oil & gas industry, or deliberately set out to mislead others? From your posts it would seem to be one or t'other, so which one is it?

[brasso3] 29/5/2017 18:33

2018 production could easily be in the 7000 - 9000 BOEPD range now.

That is $127m - $164m in revenue!

At least one producing acquisition on top of that should easily see SDX through 10000 BOEPD next year.

There is no other company close to this on AIM.

[pauliewonder] 29/5/2017 18:20

Apologies RD. Had a couple lol

[thegreatgeraldo] 29/5/2017 18:15

Cash..... the 10mmbbls figure for condensate, mentioned at the AGM, wasn't plucked out of the air I'd suggest; rather a figure they were confident about. Time will tell whether that's a conservative figure (probably as it was so public) & just how conservative....

[thelagerkhan] 29/5/2017 18:13

Cashandcard, I emailed sdx after they announced the discovery and asked the question they said $3.50 to $4.00.
Trust this helps

[cashandcard] 29/5/2017 18:05

Tgg,Let's see what they announce in the next few days/week's regarding the other flowtests and fluid sampling of the formation.PW has a knack of being conservative and releasing information, bit by bit, as it becomes available.Cash

[thegreatgeraldo] 29/5/2017 17:54

Indeed cash, which is why the anticipated condensate is so welcome, much higher netback per BOE from condensate than gas.

[cashandcard] 29/5/2017 17:50

Regarding the commerciality of the discovery and project economics, contractor and government take - I would stick with the reported gas netback of around $1.00-1.22/mscf. Cash

[thegreatgeraldo] 29/5/2017 17:34

Brasso3
29 May '17 - 16:39 - 2896 of 2898 0 0
TGG

My calculations also do not include the higher flow rate that is possible as the 26 MMCFD was the limit of the surface testing facility/ equipment.

.....Yes, but there's a difference between a test rate fron virgin reservoir & a sustainable production rate. Doubtless you're aware of the govt take from SDX's 2 current production licences?

[cashandcard] 29/5/2017 16:52

Great news folks. Two quick points;Firstly, lack of any condensate mentioned in RNS is probably (in my opinion) because more testing needs to be done on both upper and lower Abu madi, this was the first test and was an upper Abu Madi test. As they release info when it becomes available, i suspect they will announce more detail later on.Secondly, the excellent high stabilised flow rates will themselves go a long way to ensuring commerciality and also impact those resource and reserve figures for this field and also block.Cash

[brasso3] 29/5/2017 16:41

Does this not also suggest that they still expect condensate too:-

'The well has now been shut in for an initial build-up after which a series of additional flowing periods will be conducted and fluid samples taken.'

[brasso3] 29/5/2017 16:39

TGG

My calculations also do not include the higher flow rate that is possible as the 26 MMCFD was the limit of the surface testing facility/ equipment.

[thegreatgeraldo] 29/5/2017 15:59

Hmmmmm.... I thought somewhere between 10-20mmscfd from testing, comfortably exceeded that. They also mention "dry natural gas". I take that to mean no water, not a lack of condensate, as they go on to mention taking fluid samples after pressure build-up. What's not to like?

Brasso, your calcs don't include the govt take.