Sdx Energy Share Discussion Threads

[ashkv] 20/8/2021 11:20

Enterprise value if one takes into account liquid inventory as equivalent to cash is a paltry GBP 11.75 million

Management we need significant Director Buys, Clearly cost / benefit / probability / resources targetted of remaining 2 - 2021 Morocco drills
Updated as to strategy
Why are Morocco drilling costs for relatively shallow wells so high?
Also why do we keep drill bit at SDX premises and then pay such exorbitant rates?? Why can't SDX purchase their own drilling equipment? And set-up a team?

UPDATED EV PER LATEST RESULTS INCLUDING INVENTORY
Brent $66.00
SP 11.75
GBPUSD 1.36
Market Cap GBP £24,130,000
Market Cap USD $32,816,800
Net Cash $9,100,000
Inventory $7,640,000
Enterprise Value(EV) USD $16,076,800
Guidance Prodn 5,931 Actual H1 202
EV/Barrel-USD $2,711

Per SDX Half Year 2021 Results Announced today ->

Current Assets
Cash and cash equivalents $9,108,000
Inventory $7,64.000

Non-Current Assets (I just noticed the below investments entry - had slipped prior. Is this due to de-commisioning liabilities of US$ 6.8 million - or can be monitized? ]
Investments US$4,013,000

[ashkv] 20/8/2021 11:16

Shakey once again going on about depleting reserves 5.1 years of reserves left across producing assets per current reserves!!!

[ashkv] 20/8/2021 11:14

96 BCF of Prospects in Egypt - equivalent to around 20mn Barrels of Oil Equivalent if all come in, 10mn BofE if half come in - once again Shakey you are misleading and browbeating share down.

If it is such a bad investment why are you averse to a sale around 18p as you have put forward recently?

If that is a poor price than why is investing at current price not a compelling value?

You are a troll!!

[shakeypremis] 20/8/2021 10:11

There is no next project. All the prospects in Egypt that remain are very small and will only allow SDX to maintain production levels in SD for a year or two per prospect.

They have no big target to go for at present in Egypt or Morocco. There is no way currently defined for them to get themselves out of this share price slide.

[wigwammer] 20/8/2021 09:59

Then again sleeven, perhaps the next project WILL come in, and like any other exploration co the price thus rises. So all the upside of an exploration company, with the downside protected by equity, current cash flow and a rock bottom valuation. Hard to argue with that logic, but I'm sure it won't stop some trying :)

[shakeypremis] 20/8/2021 09:53

Wigwammer, that isn't good either, obviously worse than SDX but SDX isn't doing well either!

[wigwammer] 20/8/2021 09:52

Hmmm.. much better to buy an exploration co whose next project also might not come in, but doesn't have equity, current cash flow and a rock bottom valuation to protect the investment :)

[sleveen] 20/8/2021 09:43

Cash generated is spent on cap ex.

If the next higher risk explo' well doesn't come in that would be more than disappointing.

[jungmana] 20/8/2021 09:26

I agree. The only people who made money here over the last 3 years are the Executive and a few lucky 20% traders

[pjj71] 20/8/2021 08:55

Exploration & evaluation expense ("E&E") (4)

(10.6)

(0.3)

(10.9)

(5.1)

Depletion, depreciation, and amortisation ("DD&A")

(7.5)

(5.2)

(14.9)

(12.0)

Total comprehensive loss

(10.7)

(0.8)

(10.1)

(4.0)


All this money thrown at capex year after year and the shareholders get poorer and poorer... a widow maker value trap

[shakeypremis] 19/8/2021 22:41

Why would they buy shares? Better to just do a dividend. It would be money wasted that wouldn't be returned to shareholders.

I just don't think they can stop CAPEX at this point until they decide it's game over and they have completely failed. They are in a kind of death spiral at the moment, not quite a death spiral but close to it as they can't really stop drilling because they are in desperate need of adding new reserves every year just to replace produced reserves. One more bad year at SD (like this year) and unless they accelerate drilling there (i.e more than one or two wells a year lol!) they quickly start to decline production there. They need current cashflow just for the current low level of drilling they've done this year in morocco and egypt and they'll spend basically all of it. If production declines at SD then they have to start eating in to cash to maintain current CAPEX. You see where my worry comes from hopefully?

[shakeypremis] 19/8/2021 21:51

Neo26, I think share buy back at this stage is suicidal, they don't have the reserves for it. Stop Morocco exploration for 1 year and get US$10m together and along with current cash buy some currently producing mature field and develop it. SDX know how to do that and can do it well, they don't have cash or time for greenfield exploration and don't have the money or market cap (for dilution) for any significant acquisition.

[shakeypremis] 19/8/2021 21:48

Same, very disgruntled and holding.

[kaos3] 19/8/2021 21:12

I am disgruntled holder slowly adding and commenting

[neo26] 19/8/2021 21:08

KaosSo your an ex disgruntled holder, take you opinion with a pinch of salt.

[neo26] 19/8/2021 21:06

ShakeyIf they stop exploration for 1 year in egypt and morocco they can buy back all their shares.If mkt wont take note, sdx should start buying shares back.At current levels investors cant go wrong

[shakeypremis] 19/8/2021 20:53

@kaos3, exactly. On the face of it, this company, although not really achieving all that much in the last year or so - in terms of increasing reserves and production - while spending a tonne of money, should not be valued where it is. It should be worth more. But it isn't and I don't see anything that will change that. It's been too cheap for too long but it keeps getting cheaper. Something needs to change.

[kaos3] 19/8/2021 20:41

the ex manager clown is gone - but most of his "silent cooperating team" remains ?

lost track along the way .... from 70s when I started following (before buying)

PS - another stock where technical and financial performance and valuation based on it alone - without "soft" factors proves to be wrong approach in investing - at least imho

[neo26] 19/8/2021 20:29

Sdx can buyback 25% of share capital with their cash in bank.Lol

[neo26] 19/8/2021 20:24

Cant stay at these levels for long.

[ashkv] 19/8/2021 20:14

REPOST
Almost a zero risk investment at current prices - might go down / but could easily double from these levels on just a management update re change of strategy!!!

[neo26] 19/8/2021 18:59

ShakeyThe old seismic, mohsen target was there, warda was there and the two northern prospects to the left of sobhi.Hanut wasnt there at the time so it begs the question.. thats why it was 33% cos.I recall prior there was the young prospect which was deeper with potential 170bcf, well cost on that one 5m split into two with partner.I think you are thinkin too far ahead with regards to declines, currently they have plenty of cash and they can continue exploration with the cashflow.The mkt has totally valued sdx wrong. Common sense will prevail..