Sdx Energy Share Discussion Threads

[potential] 28/2/2017 12:00

Guys let SDX do the talking 50.7p paid at full ask!!!

[soulsauce] 28/2/2017 11:56

orinocor £27m + £32m = £59m

£94m - £59m = £35m where on earth do you get £60m from?

[orinocor] 28/2/2017 11:52

Maybe I should be asking why you guys believe the reserve forecasts for these assets but are ignoring the transaction value of the assets. I know which numbers I'm inclined to believe. This is O&G.

[someuwin] 28/2/2017 11:50

Moving up now.

[orinocor] 28/2/2017 11:48

The SDX market cap was £27M before placing and acquisition
Raised £32M at 30p on 25th January to do the acquisition.
Now the market cap on 28th Feb at 50p is £93.5M

So the market cap has gone up £60M therefore acquisition has already doubled in value - and you guys are asking me to justify myself!

[apad] 28/2/2017 11:48

deltrotter
Characteristics are impressive management, drilling on land (not in the Falklands :-), near good geological history and with the benefit of modern drilling techniques and relatively stable governments (cf the wild west of Nigeria).
Warning, this is a naive view.

apad

ps
Good to see this getting back on track as a board. If you want to see the mess that can be created have a flick through the SOU board.

I agree about a reasoned argument to a negative opinion, it's the stream of one-liners that ruins a board. I do an expert witness role on engineering disputes and the nice thing about an opinion is that, in law, it is allowed to be wrong - and haven't we all been wrong!

[cashandcard] 28/2/2017 11:06

del,

Thanks.


Cash

[deltrotter] 28/2/2017 10:50

That is there plan Cash.... 2nd Feb RNS:

Morocco

Following its recent acquisition of certain assets in Morocco, the Company is reviewing options to accelerate the drilling campaign originally planned for 2018. It is currently undertaking an internal review of the area's identified prospectivity and high grading the prospect portfolio. Concurrent with this, the Company is surveying the rig market to determine timing and availability of suitable equipment for these operations. It is the Company's objective to accelerate drilling and increase gas production in Morocco during 2017.



Paul Welch, CEO of SDX Energy, commented:

"Today's announcement highlights that we are entering an exciting period for the Company as we move into the drilling phase of our work programme at South Disouq. Solid operational progress was made throughout 2016 and we have continued to build on this momentum in order develop the exploration potential of the concession, as evidenced by the signing of an LOI with Sino Tharwa and the appointment of Zenith Energy. In addition to South Disouq, we have seen good progress made at Meseda with the completion of the final technical review, leaving us well placed to start on the construction activities, which will maximise production from this asset. Closing the recent acquisition has provided the Company with the ability to further grow our production base in both Egypt and Morocco and it is our intent to do so in the near term. The Company is off to a very good start in 2017 and I look forward to reporting on the progress of our activities in subsequent periods."

[sja123] 28/2/2017 10:48

Worth noting that:

Egypt has reduced its owed receivables to date from $7bn to $2bn...and has stated they will be wiped out altogether by the end of 2017...

SDX has never failed to be paid to date....have very good contacts with Egyptian govt and is because of their 60/40 $ to E£ split....

SDX will be able to use those E£ for costs and development in country...so they don't see it as a company problem....whereas COP had $ debt to service and little use for that split method of payment...

ALL imo ETC

[captain james t kirk] 28/2/2017 10:39

Good point.

[cashandcard] 28/2/2017 10:37

Just an opinion, whilst the mainstay is Egypt, I would like to see them bring forward Moroccan operations and development of those gas assets. They are very high-margin, well served by our own infrastructure from well-head to sales and are paid for in USD by private customers. There are next to no aged receivables problems there.

Essentially, Moroccan gas business is a solid hedge should Egypt face any difficulty with cashflows/receivables.


Cash

[sja123] 28/2/2017 10:34

Sometimes these negative posters add value to the thread.....a strange thing to say perhaps but since his negativity, many informed posters here have re-visited their reasons for investing and given an insight to any new investors coming to the board, as to why this is such a good buy...

Hard to find anything else at this low market cap which not only has bundles of cash to use in a fragmented and distressed market, but production doubling near term and an extremely exciting looking drill imminent....

Not only is it likely to double in value in short order but looks to me like a solid mid cap in the making.....Paul talks of doing perhaps another couple of deals this year, picking up producing assets at rock bottom prices from distressed players...

Many strings to the bow here....no one trick pony....and re rate in progress...

All IMO etc

[cashandcard] 28/2/2017 10:32

APAD,


I think its a fair point to raise the issue of Egyptian currency. If the E£ keeps falling and we are receiving part payment in that currency - its not a good place to be. But it will reach a bottom level and then we'll see stabilization and inward investment will start paying-off. No doubt, SDX's plans mean most of those E£ will be spent growing the business.

If Egypt has a couple more large discoveries like Zohr and becomes an exporter of gas, watch how the economy & currency turn.



Cash

[bushman1] 28/2/2017 10:32

Inflation nowadays is 23 %. The UK £ appears to have settled at approx EGP 19.60. A solid boost for Tourism. The country needs a resurgence there, the Nile valley is FCO approved for safe travel and has been for quite some time.

[captain james t kirk] 28/2/2017 10:30

APAD
If you are referring to orinicor, his views were taken on board by a number of posters and the facts presented to him did not produce a reasoned reply.
Not much more to be said I'm afraid.
hxxp://www.sdxenergy.com/operations.aspx
It's for the medium term but I do like the look of South Ramadan.

[deltrotter] 28/2/2017 10:29

What are those characteristics APAD?

[apad] 28/2/2017 10:26

I'd sort of assumed that rDave, but I don't have much experience of the sector. Seems sensible and management should be able to strike a balance, I guess.

My only other small oiler is SOU and I'm still reeling from its success. As well as Malcy, SDX has a lot of the characteristics that attracted me to SOU.

apad

[rapiddave] 28/2/2017 10:17

My view on movements in the local currency is that's it's a non issue. SDX receive some payment in $US and some in E£. The amount paid in E£ will fluctuate relative to the cost of oil and gas relative to $US (ie inflation adjusted)£E are nevertheless recycled into organic growth of the businessThe economic situation has improved enough to attract the super majors such as BP and Eni back to the area so that, imo, gives much confidence

[deltrotter] 28/2/2017 10:10

Exactly millie!

Talking nonesense will most often result in retorts as seen here. To be fair a couple of posters gave reasoned responses - but I did feel they were wasting their time on someone who had done zero research.

[milliecusto] 28/2/2017 10:08

Don't mind a different view,just back it with some intelligence or facts would be nice.

[apad] 28/2/2017 10:06

Do you folks have a view on the relevance of this:

"A currency plummet of the sort seen by the Egyptian Pound has led to this being reported by Arab News.
Inflation reached almost 30 percent in January, up 5 percent over the previous month, driven by the floatation of the Egyptian pound and slashing of fuel subsidies enacted by President Abdel-Fattah El-Sisi in November."

apad
ps
Herd mentality of rounding on a poster with a different view wrecks most O&G small cap boards.
I thought this quite a decent board until the recent signs of mounting hysteria.

[rapiddave] 28/2/2017 10:00

SDX is a cash machine, has no debt and has the opportunity to self fund all exploration, appraisal and workovers programs that with a bit of luck will see production in the 40,000 boe range by end of Q3~5,000 boe gives us 49p.. what then will SDX end up by end of Q3?

[deltrotter] 28/2/2017 09:52

Looks to me like they were working on it from spring last year Cash.

Note the Cantor's guy mentions it in this from last June:

[deltrotter] 28/2/2017 09:22

It's like Orinoco says, the share price has risen 60% and thus it must be a bad stock.

Orinoco is not used to stocks going in price.