Sdx Energy Share Discussion Threads

[griffin81] 11/1/2018 10:18

Supporting the price or simply taking advantage of market irrationally? Personally when I'm offered a great deal, I grab it.

[brasso3] 11/1/2018 10:18

Lots of good companies have a consistent seller eg AMER.

Once that seller is cleared the price will jump up.

I am looking to buy more SDX so would not mind this dipping below 50p. :)

[captain james t kirk] 11/1/2018 10:14

I'm not suggesting that things are going/about to go pear shaped. S.Disouq will largely be the determinant of that but for whatever reason they appear to be supporting the price.

[shakeypremis] 11/1/2018 09:28

Krik, it would concern me more if there was selling that WASN'T being mopped up by one of the biggest insiders there is, MEA Energy. Surely with their inside knowledge they would not buy if things were going/about to pear shaped.

[captain james t kirk] 11/1/2018 08:33

hiddendepths
Does it not concern you that there has been consistent selling, which appears to be mopped up by MEA Energy.

[hiddendepths] 11/1/2018 07:53

Succumbed to temptation and bought more yesterday.

[tigris72poo] 11/1/2018 03:49

Meseda fluid handling facility was increased to 20,000 B/D last year to handle increasing water cut. As the field ages, it produces a greater proportion of water (greater ratio of water to oil). So you need to process more fluid to produce the same amount of oil. To pump more fluid, you need to replace to ESPs (electric submersible pumps) which the operator has been slow to do preferring to wait until they fail. Thus, Paul Welch's optimistic projections a year ago failed to materialize. The silver lining in this story is that by waiting to increase Meseda production we are going to get a much better crude price for the incremental oil. Add the new production from the Rabul discovery and we should get a very nice boost to CF.

[hiddendepths] 10/1/2018 14:17

One doesn't need to overanalyse the operations looking for problems.

There's just an ongoing large seller, or set of them, so any rise is brief. This morning's 173k share dump is just one of them. As soon as the seller is done, the price will doubtless move ahead.

Tempted to add as the story continues to improve while the share price stays put.

[shakeypremis] 10/1/2018 13:14

So it is, read the RNS and it all came flooding back. Doubling production at Meseda at the current oil price will definitely give a nice boost to profits.

[haideralifool] 10/1/2018 12:49

shakey, they seem to be referring to info from the last set of quarterlies:

-- In North West Gemsa (SDX:50%) in Q3 2017, the operator completed the twelve well work-over programme focused on Electrical Submersible Pump (ESP) installation and maintenance with the objective of maintaining average production at c.5,000 boepd for 2017. The twelve well programme, which was completed under budget, has successfully arrested reservoir decline and resulted in gross sales volumes for Q3 2017 increasing to 4,556boepd from 4,502boepd in Q2 2017. Post period end, the work-over rig activity continued with one additional well successfully being worked over. The rig has now moved to its next location, Al Amir 21(ST), where it plans to re-perforate the Rahmi interval and then return the well to production. Unitization talks with the offset operator are temporarily on hold and are expected to recommence in the coming months.

-- In Meseda (SDX:50%) in Q3 2017, the operator completed three well workovers consisting of tubing and pump maintenance aimed at ensuring future production uptime. An initial completion in the recently drilled Rabul 1 well was also carried out. The expansion of the central processing facility was completed in the quarter with the installation of a new two-phase separator. Treating capacity in the field has now increased from 10,000 barrels of fluid per day (bfpd) to 20,000 bfpd. Now that the facility expansion is complete, additional well work-overs will be undertaken to upgrade existing ESPs which are anticipated to increase well production rates. The intention is for this to take place in 2018; the exact timing of these replacements is subject to discussion with the operator. Post period end the results of the Rabul 1 and 2 commitment wells were announced. Rabul 2, encountered approximately 101.5 feet of net heavy oil pay across the Yusr and Bakr sand formations, with an average porosity of 20%. Evaluation of this well is still ongoing, after which the Company expects that the well will be completed as a producer in the Yusr and Bakr and connected to the central processing facilities at Meseda. Rabul 1 encountered 14.5 feet of net heavy oil pay with an average porosity of 21.2% in the Yusr sands and has subsequently been completed as an oil producer.

[shakeypremis] 10/1/2018 11:58

Interesting read if anyone interested.

SDX gets a brief mention on page 8.

hxxps://issuu.com/egyptoil-gas/docs/eog-newspaper-jaunuary-2018-issue

"SDX Completes Work-Over Program

SDX completed a work-over program at the North West Gemsa Concession to reverse production declines from
the concession£s wells. The program installed or updated electrical submersible pumps (ESPs) at twelve wells with the goal of restoring production from the concession to approximately 5,000 barrels of oil equivalent per day (boe/d). Production from the concession rose slightly from 4,502 boe/d in the second quarter to 4,556 boe/d in the third
quarter, according to SDX£s figures. The company also performed tube and pump maintenance at three wells at the Meseda Concession. In addition to its maintenance work, the company completed the expansion of
its processing facility at the Meseda Concession, increasing its capacity from 10,000 barrels per day (b/d) to
20,000 b/d."

1. So they've completed the work-over programme at the NW Gemsa concession to get production back up to 5000boe/d. Wasn't this supposed to happen 2nd quarter this year onwards? Or was this in addition to the 7 extra planned for this year?

2. Why have they expanded the processing capacity of the processing facility at Meseda from 10,000 barrels/day to 20,000? What do they need that double capacity for exactly? Do they plan to be processing 20,000 barrels per day from the Meseda and NW Gemsa concessions or something?

Has any of this been RNS'd?

[brasso3] 09/1/2018 20:41

Unbelievable price reaction today. I am not too disappointed though as I plan to top up next week with some new funds I will have released. Anything in the 50's is a bargain if you can wait 12 months.

[shakeypremis] 09/1/2018 20:29

Yes, SDX need to report on reserves and gain a hefty reserves upgrade. Hopefully South Disouq will provide that needed increase in reserves.

[haideralifool] 09/1/2018 20:26

Scrutable, that could well be true.

But, for example, looking at NW Gemsa there are two standouts for me. We should be getting more netbacks from it in the next set of accounts, on account of the link to the oil price. That's the good news.

On the other hand, given the reserves we have there (Dec 2017 presentation), it seems to me that with current rate of production there's only say 5 years left from that source of revenue, the size of which seem to be close enough to the additional 5mmscfd that SDX will be getting from Morocco.

Happy to be challenged on this, but if the above makes sense, it may help explain that some people may see SDX recent news as simply running to stand still.

[scrutable] 09/1/2018 20:16

Heider

Surprising how investors so often ignore actual facts.

Another $10- $15m in revenues without adding new costs justifies the current cap of £107m on its own. SDX has therefore just doubled its value. The share price must respond accordingly and will,......... during the next few weeks..

[haideralifool] 09/1/2018 19:34

So the doubling of production in Morocco should mean something like an extra US$10-$15m in revenues. Not to be sniffed at, but not entirely transformational either. Or have I missed a zero somewhere?

[wayhay] 09/1/2018 19:14

MMs filling Large orders to earn some doe , Spread is large to put off buyers . But what do i know .

[bountyhunter] 09/1/2018 15:21

TD, I'm following a similar strategy at least for a proportion, so apart from SDX, SQZ, FPM for example, what do you have on your list?

[scrutable] 09/1/2018 14:56

SDX is probably the most undervalued share of all on the LSE at the moment, but nothing happens without a reason. These frustrating share price falls in defiance of the sequence of good news/facts can only mean that someone with a load of shares needs to turn them into cash right now, and is happy to loose value knowingly to get liquidity.

Consequently it must be a great time to be buying SDX. No doubt about it A very unusual situation..

[the drewster] 09/1/2018 14:38

small(er), debt free, producing oil/gas co.'s are on my favourites list for 2018.

[bountyhunter] 09/1/2018 14:35

yes more good news and the share price goes down! unbelievable, good thing we had a positive update, anyway I won't be exiting anytime soon, value should come out in the end

[hiddendepths] 09/1/2018 14:32

What sillies we all are! Fancy thinking that was good news! And as for the MMs - marking it up to 55-60 at the start - whatever were they thinking?

[darola] 09/1/2018 14:25

Business case is still compelling, which adds to the fustration. At the point I decide to give up on it, it will probably fly the next day!

[pjj71] 09/1/2018 14:03

you got to love this donkey of a stock.. tanks on bad news and tanks on good news!!!