Sdx Energy Share Discussion Threads

[captain james t kirk] 08/3/2017 13:39

Just a small point on the $1 million expenditure.
That's the estimated figure for the deeper drill at S.Disouq - SD1 (7,300ft to 10,300ft) to test the oil prospect, over and above our full carry up to $3 million.
We will only be liable for our share of this amount (55%) around £450,000.

[neo26] 08/3/2017 13:30

Rapid DaveIts going to be a "transformational" year for sdx regardless of the results of sd-1.If like you say after all the free cashflow and $20m in cash and receivable this falls to 30p then it time to double down or treble, that will be dirt cheap for a company making profits around $27m per annum..

[sja123] 08/3/2017 13:01

Mr Moaaz is described in one of Paul Welch's interviews as the company's secret weapon....and the main reason that SDX have no particular problem getting paid in Egypt.....many others have struggled but as yet, SDX have ALWAYS been paid!...

Of course, it helps greatly that the proportion of money received in E£ is of less consequence when it can be used for in country development and costs....

[micktrick] 08/3/2017 12:53

Have a look at Ahmed Farid Moaaz's profile:

"Mr. Ahmed Farid Ahmed Moaaz serves as the Country Manager of SDX Energy Inc. Mr. Moaaz is responsible for Egyptian operations. He has over 30 years experience in the oil and gas industry. Mr. Moaaz served as Country Manager at Sea Dragon Energy Inc., since October 01, 2006. He served as Vice President of Operations at Trident Petroleum International from May 2005 to September 2006. Mr. Moaaz served as the Chairman and Managing Director of El Wastani Petroleum Company, owned by Egyptian Natural Gas Holding Company (E-Gas) and Centurion Energy International Inc. from August 2003 to April 2005. He served as a Director of SDX Energy Inc. Mr. Moaaz also served as Deputy Chairman for Production of Egyptian General Petroleum Corporation (EGPC) from September 2002 to August 2003 and was responsible for supervising and directing drilling production and petroleum engineering of all joint venture companies operating in Egypt. Mr. Moaaz also supervised the operations and was a director of Suez Esso Petroleum Company. Mr. Moaaz served a Director of Sea Dragon Energy Inc., since May 6, 2008. Mr. Moaaz has a B.Sc. in Petroleum Engineering from Cairo University in 1971."

[micktrick] 08/3/2017 12:18

A bit more on COP exit:

hxxp://www.egyptsummit.com/single-post/2016/09/19/Circle-Oil-to-Exit-from-Egypt

[bostonborn] 08/3/2017 12:10

Don't forget that when SDX bought out Circle Oil (on the cheap) they would have been "handed" lots of geophysical survey information, and that's why they are so confident of being successful with their South Disouq, soon to be spudded drilling.

[blueball] 08/3/2017 12:02

stay in cash.

[deltrotter] 08/3/2017 10:23

Great post - thank you.

[cashandcard] 08/3/2017 10:07

An old Centurion production update:


-04/01/2006 "El Wastani Production Lease

The El Wastani East 3 development well has reached total depth of 3,068 meters
and encountered 20 meters of net pay in the Upper and Lower Abu Madi Formations.
The well has been completed in the Upper Abu Madi and is currently being
produced through the El Wastani production facilities at a gas rate of 25
mmscfpd of gas plus natural gas liquids.

The El Wastani 11 development well reached total depth of 3,015 meters and
encountered 84 meters of net pay in the Upper and Lower Abu Madi and in the
Qawasim formations. The El Wastani 11 well was completed in the Qawasim
Formation and is currently being produced through the El Wastani production
facilities at a gas rate of 15 mmscfpd of gas plus natural gas liquids.

The El Wastani 10 development well has reached total depth of 2,952 meters and
has encountered 66 meters of net pay in the Upper and Lower Abu Madi formations.
The well has been completed in the Lower Abu Madi formation. The well is
currently being tied in and will be tested through the El Wastani production
facilities. Production is expected to commence shortly thereafter.

Current production from the El Wastani Production Lease is 180 mmscfpd of
natural gas and 6,500 bpd of natural gas liquids (36,500 boepd).

---------------------------------------------------------------->>

Its no wonder SDX are full of confidence re. South Disouq, look at the production potential of the Abu-Madi in Said Arrata's previous company Centurion and the El Wastani field:

-180mmscfpd

-6,500bpd condensate


That is simply huge, if they can hit targets as they expect. It is now wonder they are talking of mid-tier and 25-30,000boepd if its successful.


Cash

[deltrotter] 08/3/2017 09:23

Exactly cash - forget the upcoming drilling (albeit that is a quite wonderful prospect) and concentrate on the current business and it is just too cheap.

It is throwing off cash....

I don't blame the company for what has happened. They needed to raise cash to get COPs assets on the cheap. They are a small company and thus probably could not tie funders in.

As for the company flipping the shares - I don't blame them either. That is the game they are in. Take part in placings and then move on quickly.

BUT - if SDX are successful with the drill bit, this will NEVER happen again.

So, overall, a bit of a surreal experience, but it is what it is. I am rather thankful personally as it has let me in at a great price...

Ramble over!

[cashandcard] 08/3/2017 09:18

4,700boepd and a marketcap less than a lifestyle outfit like PVR, only £30mln more than SOLO - I'm astonished at the level of discount here.


Cash

[soulsauce] 08/3/2017 09:12

Good to see the bounce, finally.

[deltrotter] 08/3/2017 09:09

On any metric, just way too cheap. The market will not allow that to happen for any prolonged period of time.

[someuwin] 08/3/2017 09:08

Buy the dips.

[plentymorefish] 08/3/2017 09:00

Wonder how low they'll take it. 35 looks the low to me but hope we don't test it!

[cashandcard] 08/3/2017 08:59

Days away from a very low-cost, high reward drill. What an opportunity to buy.

Cash

[rollthedice] 08/3/2017 08:55

It's surprising that there are sellers driving this down when drill is largely carried, could be transformational and spud is imminent.

[sja123] 08/3/2017 08:53

Chart would seem to be sitting right on the buy point now imo....

[petergennery] 08/3/2017 08:44

Jumped out earlier in the week, this constant drop is making it mighty hard not to get back in given the proximity of news

[captain james t kirk] 08/3/2017 06:53

In the COP deal, they paid $30 million, which was broken down into $18.3 of receivables less payables, of which $1.9 million was cash. The other assets cost $11.7 million.
Their policy to date has been to extract payments from the Egyptian government on a mixed basis of E£ and $. A lot of their expenditure is in E£ and the up coming drill is a good example. Three quarters of the total cost is borne by their partners, IPR, but the full $4 million can be paid for in E£ and IPR can transfer $3 million (their share) to SDX. It's good business.
In addition to the above figures the SDX working capital position at 30/09/16 was $9.6 million of which $5 million was cash. There is no debt.
PW recently stated in a presentation that they have working capital of $27 million with $7-8 million in cash.

[neo26] 08/3/2017 01:12

Just a quick question do sdx have $15m in cash and $18m in receivables from Egypt govt or is it in pounds?

[cashandcard] 07/3/2017 20:12

n13518,Egyptian receivables was a problem, but that alone was not the reason for COPs demise. The main one was creditors hanging over COPs head and pretty much calling in $80mln or so debt.A lethal combination of overspending someone else's money and not getting paid enough USD in time (or being able to secure a longer grace period) to satisfy their creditors caught up with them. That is a fundamental difference between SDX and COP. With smallcap oil co's, debt in a downturn can quickly lead to an end. Cash