Sdx Energy Share Discussion Threads

[haideralifool] 20/4/2018 11:57

neo, what had really been frustrating me was people like malcy banging on about profit margins in Morocco.

They were all well and good, but I think the share price was being held back because other people were uncomfortable about the reserves and where more could be found.

At least this result gives us an idea as to where more could be found, even if it is the smaller Upper Dlalha which is going to be put into production near term.

Bear in mind also thet Circle had had no joy here and that SDX had said that if LNB and LMS did not work out they'd focus on Lalla Mimouna Sud, which I read as if they were going to give up on it.

[shakeypremis] 20/4/2018 11:56

It's 55 thousand barrels of condensate. Not million.

[gisjob2] 20/4/2018 11:52

Is he referring to the condensate ? 55 thousand barrels is quite a lot

[shakeypremis] 20/4/2018 11:47

What do people make of this line from the RNS:

"These types of shows have not been seen to date in other parts of the basin and indicate that a new petroleum system has been encountered in this area."

Is there the possibility for oil down there?

[neo26] 20/4/2018 11:39

HaiderGlad to see your mood change. :-)Good times coming here.

[haideralifool] 20/4/2018 11:36

neo, the Sebou wells were taking 15-20 days each from spud. Allowing for demob time etc. this result should speed things up by about 6 months.

[neo26] 20/4/2018 11:22

The aim is to fill that pipeline which can hold 24mmcfd.I believe that will be done sooner now.

[neo26] 20/4/2018 11:20

Is PW not out today, you havent put him off have you.I wanted to hear more on the find.

[tell sid] 20/4/2018 11:17

Edison note

[potential] 20/4/2018 11:15

The "?" Refer to 100p :-)

[potential] 20/4/2018 11:14

Excellent news- it's a matter of time now before we're "cooking in oil"Sp wise we should have no issues in greeting to a minimum of a £1 from here over the summer as this is just the start!! On top of that I would be very surprised if we don't get a take over bid by then? and that will be much higher then the £1 mark for sure!! ?

[jinxo777] 20/4/2018 10:58

Added some more to my portfolio this morning (59p is still ridiculously cheap based on the last 2 RNS) - good to see some buys going in over 60p early this morning - hopefully these people will not be tempted to sell any time soon!

[duckdown] 20/4/2018 10:50

takeover bid looking more and more likely now.

[thegreatgeraldo] 20/4/2018 10:48

Focus has very much been on Sebou, at least in public, where the production is. After today's result, I think we'll be hearing more about LM Nord.... wonder what other targets they've got on the existing seismic? Very interested in LMS-1 now!

[captain james t kirk] 20/4/2018 10:44

On the face of it,the success at LNB1 has knocked a hole in just over half of those 10-11 wells and it's only April.

[haideralifool] 20/4/2018 10:32

The following extract from the Edison 30th Jan note, should put the importance of this discovery into context:

"We estimate that SDX ended FY17 with c 5.2bcf of 2P gas reserves (excluding 2017 discoveries) which we forecast would rise to c12.7bcf including existing discoveries and risked 2018 campaign resource (2P + nine-well campaign).

Our risked five-year demand forecast in Exhibit 1 consumes 24.6bcf of gas, implying further gas will need to be discovered in 2018/19 in order for this to be met. Based on an average discovery size of 1.5bcf and a GCOS of 75%, we estimate that an incremental 10-11 wells are required in order to meet this demand forecast. SDX sees the remaining unrisked exploration potential at over 50bcf, and as such we do not see this as a limiting factor. We note that our valuation only includes value for 2P reserves and the nine-well campaign and excludes incremental value from future Moroccan drilling activity".

[haideralifool] 20/4/2018 10:24

Does this result mean that they'll likely punch more holes in Lalla Mimouna Nord, where they shot seismic? It's the blue rectangle in the Dec2017 presentation.

Also the exploration permit for Lalla Mimouna is waaay larger than the area where they have seismic, so any chance of shooting more?

[duckdown] 20/4/2018 10:16

Looks likely.

Plus they are starting to pave the way for increasing production in the medium term as well.

All very positive, and still one of the most significantly undervalued companies in the sector at the moment.

[neo26] 20/4/2018 10:01

So we all in agreement, this year production in Morocco will reach 8-10mmcfd, at around $10/mcf?

[neo26] 20/4/2018 09:58

TggThat 5mmcfd is around $20m in gas sales per annum and probably cost $2m to extract.Its all going well, this year is definately for development, they will come back quick to Morocco to drill more wells.

[thegreatgeraldo] 20/4/2018 09:54

When PW turns up on overactive directors later, it would be nice if he could shed some light on the "unusual seismic response" at the LMS-1 target

[captain james t kirk] 20/4/2018 09:51

I'm just wondering if PW had enough room to fit everything into the rns :)

[thegreatgeraldo] 20/4/2018 09:42

Take the 10bcf, divide by 5 & that gives you a nice round 5mcf/day over a 5 year contract term. Probably not this year, but maybe next? Of course, it doesn't quite work like that, but a rather valuable discovery.....

[haideralifool] 20/4/2018 09:29

neo, PW will be doing interviews and malcy will be rehashing the RNS, nice work if you can get it.

[hiddendepths] 20/4/2018 09:23

If you mean Transactional Analysis, odvod, I've trained in it and am a great aficionado.

I suspect a little bit of front-running here and closing of same this morning. It's almost impossible to keep what's going on at wells completely tight. Somewhat easier when the rig is offshore as the drilling team can't head off to the nearest hostelry, but there are still people involved around any RNS and some weaker souls are always liable to yield to temptation.... It's not a big issue here IMO.