Sdx Energy Share Discussion Threads

[cashandcard] 20/9/2019 11:01

Anyone know how much EGPC owe SDX now? the only figure I can find with regards to recievables is the last set of results with $21.8mln less $5.7mln post period end leaving $16.1mln at that point before any further receivables took that back up. It is mixed with Moroccan receivables so not a clear picture. I just want to get an idea of EGPC's ability to pay for the gas as that will be significant going forwards and be critical to anything SDX do in the coming year etc. Cash

[des56daw] 20/9/2019 10:42

On the upgrade to 100/150mmcf/d assuming we find more gas at SD anyone have an idea on costs and time to upgrade the plant. I remember Squelcho saying it would be easy and cheap, but given what we know now a rough idea would help. To be fair to the lying git he did not give a cost. Des

[thegreatgeraldo] 20/9/2019 10:33

As shakey says, finding gas in Morocco won't be bad news, but they need a market for the stuff. What would be interesting is if they could find some accumulations above the "standard" 2bcf or so size... & there's LMS-1 to revisit at some point...

[shakeypremis] 20/9/2019 08:12

I would go with the SD facility coming online and gas being sold in to the grid. In Morocco it's not certain they'll get the customers to sell the gas too. 50bcf of resources would of course still be very worth having a it ensures certainty of supply for the future and finding it now rather than later is going to save money as costs always rise. The more gas they find in Morocco the better I say, but it probably won't be worth much to the share price unless they can sell it. That's why I'll go work SD as the big value driver. Get it online at 50mmcf/d and it's almost like you've got it online at 100mmcf/d because I'm sure they'll find more gas in the region.

[divmad] 19/9/2019 18:55

Which will be the bigger driver of value accretion for SDX, a successful roll out of their SD producing wells, or exploration success in their upcoming 12-well Moroccan program targeting gross unrisked resources of 50Bcf?

[shakeypremis] 19/9/2019 09:34

I seem to remember from some estimate SDX gave in some RNS that they'd produce about 60 barrels of condensate per day (net) along with the gas. However, I also seem to remember a later RNS stating that SD had significantly more condensate than previously thought and they were modifying the processing facility to accomodate it. As with anything SDX have said previously under Squelcho, we'll have to wait and see what materialises under full commercial production.

[cashandcard] 19/9/2019 09:22

shakeypremis #8036, Thankyou. Seems a half-decent price considering this is Egypt. I imagine any liquids would supplement that price. The sooner they get on with it the better. Cash

[shakeypremis] 18/9/2019 20:59

There is a large market for bottled gas in Morocco. What SDX *could* do if they find enough gas and can't sell it via the pipeline, is build a bottling facility and bottle the stuff for sale. It sells for something like US$15-18/mcf.

[thegreatgeraldo] 18/9/2019 20:49

Hi Haider...... very straightforward to switch from bottled to piped gas....... there'd be some costs (quite lumpy?) in switching from diesel to gas

[haideralifool] 18/9/2019 20:15

Talking of SAVP... courtesy of ZENGAS on the SAVP board, we have the following comment from Numis: "there is an estimated 20GW of off-grid power generation capacity in Nigeria that is currently burning oil products), which in a $60/bbl Brent oil price environment, corresponds to ~$8.0-12.5/mscf gas price in energy equivalent terms." AIUI SDX have had slower uptake in Morrocco for their gas sales than originally promised. In all previous research notes I recall SDX saw sales being achieved from customers who were previously using bottled gas. But bearing in mind the above comment, could there be potential sales to customers who were previously using diesel?

[brasso3] 18/9/2019 18:28

SDX have drilled around 20 wells in recent years. I thought HUR had only drilled 2?

[divmad] 18/9/2019 18:26

Can either beat SAVp? 5 out of 5 successful drills in Niger so far.

[tournesol] 18/9/2019 17:40

Brasso Not really interested in comparing this to HUR as they are different companies in different locations at very different ends of the spectrum. Your original comment said that SDX had the most successful drilling record on AIM as far as you were aware. I told you about a company with a record that is a gazillion times better. Now you say you don't want to make comparisons.

[shakeypremis] 18/9/2019 16:44

$2.85/mcf + whatever they get for whatever condensates produced. Net revenue will be about 25%, give or take. Although there will be cost recovery which will increase effective revenue in the first few years.

[cashandcard] 18/9/2019 15:36

Can someone remind me how much they will get paid for the SD gas sales (per mmscfd) and what their 'net' entitlement will be after government take of the gas? Cash

[cwmwillis] 18/9/2019 15:13

That's my hope.. Lots of people like a divi!!!!

[shakeypremis] 18/9/2019 14:12

They did prep the ground for dividends with the capital restructuring relatively recently. I think they do intend to start paying a dividend. Perhaps not with some of the freecash flow from SD but at a later date after more hookups, but who knows.

[cwmwillis] 18/9/2019 14:01

MEA & I&S with 40% of this company are going to want to see a return. They must be as, if not more annoyed with the share price performance as the rest of us. Small Divi's i say!!! Balls to what PW said about it. That will open peoples eyes!!

[shakeypremis] 18/9/2019 13:15

Assuming SD does come on and comes on at the stated rated then I think we can be pretty sure that the rate will increase over time. I don't doubt they'll hit more gas in the area.

[brasso3] 18/9/2019 13:02

If SD was online today at the expected 50 MMCFD then this is significantly undervalued. I am willing to top up on that basis as I think the probability is in my favor. Not really interested in comparing this to HUR as they are different companies in different locations at very different ends of the spectrum.

[cashandcard] 18/9/2019 10:55

tgg, Fair enough, but therein lies the problem. I can remember the presentations indicating their was huge demand for gas in Morocco and they would have no problem selling any gas found - clearly over selling it. But SD is the real deal. Just taken an age to get to. Cash

[thegreatgeraldo] 18/9/2019 10:50

No image problem....... the past problem has been over promising & under delivering.... getting South Disouq up & running will be a positive, as would finding a market for more gas in Morocco..

[cashandcard] 18/9/2019 10:42

Having been invested here in the past, wonder how long it will take to shake off the image problem PW left this company in? Cash

[shakeypremis] 18/9/2019 10:30

Hopefully SDX aren't paying him any more. Waste of money and food.