Sdx Energy Share Discussion Threads

[pjj71] 23/1/2018 07:41

well i hope it sustains an uptick for those still invested here... Still glad I did the switch to FUM made 20% there... GLA

[pjj71] 23/1/2018 07:41

well i hope it sustains an uptick for those still invested here... Still glad I did the switch to FUM made 20% there... GLA

[haideralifool] 23/1/2018 07:31

ONZ-7. RNS out. 5m net pay. That's the lowest in the current campaign (apart from the last duster). Porosity a few % better than elsewhere.

[captainfatcat] 23/1/2018 07:30

RNS Gas discovery at ONZ-7 well, Morocco

[greenrichard] 22/1/2018 16:52

Most were actually buys. You could buy below the mid price all day. Anything 50p plus is a buy.

[dsmith57] 22/1/2018 16:38

Just when you think we are beginning to move in the right direction. 600k sold and 2k bought this afternoon. WTF!!!!

[shakeypremis] 22/1/2018 12:43

Yes, the b*stard government take 50% of the gross and then SDX and their partner split what's left 55/45. Robbery. So from 75mmscf/d SDX will only get sale proceeds from 20.6mmscf/d. Absolutely shocking really. Still, if SDX can negotiate $4/mscf that's $82,000 per day revenue.

[thegreatgeraldo] 22/1/2018 12:27

Brasso3
20 Jan '18 - 10:55 - 5220 of 5226
0 1 0
I think at some point in 2018 H2 SDX will be producing 75 - 125 MMCFD.

SDX might get something like that with a successful campaign at South Disouq, but that would be gross WI, imvh, not net to the company.

[lauders] 22/1/2018 11:17

With good fortune the highlighted bit below, from LAST week, will provide some positivity around these parts!

SDX Energy

SDX has announced this morning that it has spudded the ONZ-7 well in the Sebou Permit onshore Morocco. This well is the fifth well in the nine well campaign and like most of the others will only take 10-15 days to drill and, if successful, be able to complete, flow test and connect to infrastructure very quickly indeed. The model at SDX is working well and there is much upside from not only this drilling campaign in Morocco but development and exploration opportunities there and in Egypt. Next week sees an analyst visit to Morocco and I notice that there is substantial interest from the community, some of whom are only just catching up with the SDX story…

[11_percent] 22/1/2018 11:16

Newman on Share Prophets
"It can be difficult just buying and holding a share at times, especially when nothing is really happening with the share price and many of its peers are seeing large rises.

You could of course argue that you should have picked one of those instead and that you’ve made the wrong choice, but if your original decision was backed by the fundamentals, and nothing has changed on that front, then often the best thing to do is just to wait, or even to add more.

That very much seems to be the situation with SDX Energy (SDX), a company where I hold shares myself and have been adding more recently. The share price has been bouncing around the high 40p to mid 50p range for months, and has been unable to breakout even when there has been positive news.

But for me it now looks even cheaper than when I originally bought in last autumn, as the fundamentals have actually improved a fair bit. It has had a number of successful drills recently, with wells being put straight into production and adding significant amounts to daily production.

Alongside that we also have higher oil prices coming into play, which should make its operations even more profitable, plus gas prices in Morocco for the domestic market which SDX serves are strong and there is surplus demand.

Whilst the gas in Morocco has plenty of potential, a lot of existing production – as well as upside potential – comes from its operations in Egypt, with North West Gemsa, where it hold a 50% interest, averaging over 4,500boepd. This field also makes up a decent chunk of the 2P reserves – they stood at around 3 million boe net at the end of 2016, from a total 0f 9.3 million attributable to SDX, and we should soon get an update for the figures as at the end of 2017.

Gemsa is expected to continue to produce at a similar rate during the coming year, and with operating costs of just $8/barrel and its oil selling at just a 10% discount to Brent, it should generate good levels of net cash flow.

Its other producing field in Egypt, Meseda (50%), had been producing around 3,300boepd gross in the first half of 2017 before facility upgrades were carried out, but with the additional work planned on that field, we could see that figure double. This field also still has plenty in the way of 2P reserves to extract – 10.9 million barrels, as at the end of 2016.

There is also plenty going on at its 55% owned South Disouq gas field, and it is hoped that production will get underway in the first half of this year – although that is dependent on negotiations with the government over gas prices.

The development would initially target at least 50 million scf/d (gross) and would be directly connected to the nearby national gas pipeline. Currently the company only realises just over $1/mcf though for its gas, which is a fraction of what it gets in Morocco.

There is also large potential upside from further exploration at this field, as current gross contingent resources stand at 227Bcf, with an additional 11 million boe. It would also be quite easy to bring these resources online as and when they are proven up, as not only is there a gas pipeline, but also ones for oil and condensate.

In Morcco, the drilling campaign at its Sebou field (75% working interest) has been producing some good results – KSR16 tested at 8.43MMscfd; 7.52MMscfd for KSR15; and 6.4MMscfd for KSR14 and the wells are being put straight into production and the company is on track to meet its targets from this licence for this year.

That being daily gas sales of 10-11MMscfd, as current infrastructure does limit this – there is no local or national grid in place - but new customers are being added all the time. That would compare very favourably to the current situation which has been averaging 5.5MMscfd at a price of around $9/mcf – and not only would that double, but a MOU is in place with Porcher to increase the price to $12/mcf for a five year period.

In terms of this infrastructure in general, things have moved very slowly in recent years, but there now seems to be a renewed urgency from Morocco to become more self-sufficient in terms of generating its own energy in the future – currently a lot of its energy is imported. For instance, a proposed $4.6 billion investment in a natural gas plant is now looking more likely to actually go ahead.

Whilst this doesn’t directly affect SDX at this moment in time, it does point to the likelihood that money will be spent on more infrastructure in the future, which would certainly help to solve the problem of actually getting the gas produced to customers, and increasing sales at the same time.

SDX is already in the unique position of owning 75% of the only privately owned pipeline in Morocco at the moment, and you could argue that more infrastructure would reduce that commercial advantage. But it is also restricting what the company can sell, and given that a lot of supply currently comes from very expensive bottled gas, I don’t see it as having a negative impact – plus it is still some way off and I would expect SDX to be a much larger company by that stage anyway, based on the progress it is making.

There is plenty of exploration upside as well – over 12Bcf of unrisked gas potentially – although the recent drill at Gharb Centre, ELQ-1, produced a disappointing result. That drill location was based around old 3D seismic data, and the company is now in the process of getting new seismics shot to better identify future drill locations.

So as you can see, not only is the company already selling oil and gas, but it also has the potential to increase production rapidly at a time when the price, and the market in general, is stronger.

At the current share price of around 50p to buy the company is valued at £100 million, and I would argue that the current financial situation supports that.

For a start the company had nearly $58 million working capital available at the end of 2017 – with over $30 million of that being cash – and is debt-free, plus it is generating cash flows in the region of $2 million per month.

The latest results for the quarter up until the end of September 2017 showed that the company made $10 million revenue and recorded a net profit of $4.4 million, but a lot of that is down to adjustments made as a result of the Circle Oil asset acquisitions.

I would be more interested on how the company performs moving forwards, and how the capital expenditure on drilling and improvements to its fields that is has been making translates into increased profits in the future.

In terms of the share price and lack of movement, I suspect that there is a background seller and has been for some time, as any sort of rise and volume seems to result in larger blocks being dumped. But I’ve seen this before on many other shares, and when that selling pressure does finally clear, it is often accompanied by a nice rise.

There is still risk here, but I believe that the growth potential moving forwards is sufficient to justify a higher market valuation than the current one, so I will remain invested for the longer term unless something fundamentally changes."

[neo26] 20/1/2018 15:43

I think the gas sales will be at least 3.5 per mcf.

[itsriskythat] 20/1/2018 13:09

The Egyptian government take is still being discussed, as at present SD production is not contracted. Unknowns are the price for gas sales as well as the government take.

[neo26] 20/1/2018 13:09

In meseda we are joint operators with 50/50 split, half the oil goes to state and then we split the revenue between us and our partner. In Gemsa we have 50/50 and we get 50% of share.. What about South Disouq does anyone know what the share is once in production?

[neo26] 20/1/2018 12:40

How much of that goes to state?

[brasso3] 20/1/2018 10:55

I think at some point in 2018 H2 SDX will be producing 75 - 125 MMCFD.

In oil equivalent that is 13,000 - 22,000 BOEPD.

[neo26] 20/1/2018 10:11

On the presentation the ibn yunus target looks huge, I'm confident they will increase production close to 100mmcfd by the current SD1X find and the 4 wells planned to be drilled imminently..

[wayhay] 20/1/2018 09:16

Neo , I would also imagine that the IBN yunus well , would have been surveyed with the same top quality survey . As was the last one in SD , PW said it was identical all the way down to TD, As it was to the survey .

[neo26] 19/1/2018 23:29

next Moroccon well is anticipated to take 10-15 days, this is smaller time-frame than the other 4 wells, i anticipate the well to reach TD next week.

Also to note on the eddison report it states the last well had limited seismic data and the other 8 targets have excellent quality data. Lets wait and see, so far all has gone well.

Also we are expecting IBN Yunus well to be drilled anytime now, email Mark Antelme, is he still working at sdx? No reply.

[neo26] 19/1/2018 23:20

PJJ71

That Bandar is not trustworthy over at FUM, good luck.

[lauders] 19/1/2018 15:03

Might be better than seeing it decline Darola! I am still keeping the faith though. Just needs continued positive news and a change of sentiment and hopefully we will be off to the races as it were!

[darola] 19/1/2018 14:42

Going to see how it reacts when they confirm cash flow and cash in bank. Both must have grown, but to what extent? And what are they planning to do with the cash? Market apathy is certainly a bit of an enigma. We could all stick our money in the bank if we wanted it to stand still...

[pjj71] 19/1/2018 14:22

Nah.. wont be back.. switched into FUM and already 8% up.. glad to be out of this dog...

[shakeypremis] 19/1/2018 12:00

Don't do it dsmith57:



Share price just hit the bottom of the rising channel.

[dsmith57] 19/1/2018 10:47

Sorry. I am now f——-g done!!!

[neo26] 19/1/2018 10:41

OK thanks for your input, bye