Sdx Energy Share Discussion Threads

[winnet] 27/11/2023 10:47

we have a monopoly through our pipeline, which is the only pipeline!

But yes, there is no exclusivity agreement..."No other gas supplier can access this gas demand due to control of the transportation infrastructure by SDX"

[roman2325] 27/11/2023 10:46

Winnet - we are the only onshore producer (we don't have a monopoly).

Regards the pipe - does anyone know how this works in practice? Does Onhym get no say in this? (Surely they will lose out on a lot of revenue if we start just piping it down from Spain). And why has no one else done this? It is well known in the market that Morocco is a great place strategically to sell into Africa so if I was a larger player I would almost definitely explore this - surely it is not as simple as that?

[winnet] 27/11/2023 10:18

SDX's vision for a diversified energy transition business is planned to be realised through a series of complementary and modular projects. These consist of the following 'building blocks':

(A) Expansion of SDX's existing gas transportation infrastructure to connect to the Algeria-Spain gas pipeline ("GME") - once realised this will enable SDX to supply gas from Europe to industrial offtakers in Morocco's Kenitra region;

(B) Generation and cross-selling of renewable energy together with SDX's existing gas offtake contracts; and

(C) Vertical expansion into additional power-generation initiatives, on an opportunistic basis.

----

Do i take from this that they are going to connect the pipeline as a backup if the 10 additional wells cannot produce enough? If so, gives you an idea of the demand.

Remember, we have a monopoly on the gas to that region...

[neo26] 27/11/2023 10:05

I dont think they would be drilling 10 wells if they were not going to sell. I think the paperwork is close. Wont be surprised if its this week.Im sure they are also negotiating with the 1 trillion dollar chinese co, lots will happen before christmas. Imho

[winnet] 27/11/2023 09:46

agreed, would be slightly embarring if the deal didn't conclude now.

[neo26] 27/11/2023 09:40

With the new presentation out, nothing on the egypt asset. It safe to assume it will be disposed in coming days.

[winnet] 27/11/2023 09:35

Aaron LeBlanc, Senior Advisor was COO of Aminex... A stooge of Jays then...

[neo26] 27/11/2023 09:25

34They did say that Citic offtaker will sign an HOT agreement to pay for upfront gas, they said it will be large payment.Also egypt disposal will give them decent amount of cash.Mkt cap of 20m is fair at moment but we trading at 8m..

[neo26] 27/11/2023 09:22

Gould did mention in interview with greater partnership with CITIC Dicastal, joining the pipeline to Maghreb-Europe Gas Pipeline from spain makes sense long term. Our pipeline capacity is 25mmcfd.Citic are one of the largest parts maker in world, they need gas in kenitra. Also sdx will drill 10 wells...This means we will get decent cash for egypt assets.This will be over 10p soon.. disposal news this week or next. Imho

[34adsaddsa] 27/11/2023 09:22

I don't think drilling for gas really works as a business model because the targets are so small. They've been doing it for ~6 years and the business has consistently burned cash.

The point about extending the pipeline is that it's the only pipeline to Kenitra so they should still have a monopoly and could transfer far larger volumes, pocketing the difference between the wholesale price at pipeline from Spain and local price in Kenitra.

We need:

1. How much they're getting from Egypt.
2. How much they need for all these projects.
3. How much it'll cost to borrow
4. What the expected returns would be.

The nightmare scenario is they borrow from Aleph/Aleph's partners at exorbitant rates and invest in unappealing projects just so they can justify borrowing and giving Aleph all the Egypt cash via interest payments.

[roman2325] 27/11/2023 09:09

Personally:
a. Focus on drilling gas - its your only USP.
b. Everyone is already in green energy and it won't lower your borrowing costs if no one wants to lend to you.
c. 'Extend its exisiting gas transportation infrastructure'? Maybe someone can enlighten me but its not Vitol and they'll get squeezed out if they try and compete

Lets drill for gas, find gas, sell that gas cheaper than the competition and grow organically, strengthening the relationship with Onhym. A lot of areas where this can grow wrong (again), lets just focus on execution

[winnet] 27/11/2023 08:53

hxxps://wp-sdxenergy-2020.s3.eu-west-2.amazonaws.com/media/2023/11/SDX-Presentation-Nov-2023.pdf

intresting!

A 10-well drilling campaign...

Lots of stuff to digest there.

Who is Aaron LeBlanc, "Senior Advisor"... why is this guy all of sudden on the exec team without an announcement.

[littlened] 27/11/2023 08:46

The future is new management whose interests are aligned with shareholders through options.Aleph don’t run SDX

[winnet] 27/11/2023 08:33

sounds like when not if...

"With the upcoming disposal of Egyptian assets and a series of exciting opportunities in Morocco"

[winnet] 27/11/2023 08:30

spot on 34.

[34adsaddsa] 27/11/2023 08:27

The past is often a good guide of what will happen in the future, particularly when it comes to the behaviour of individuals. Aleph have a history of putting their own interests before those of SDX shareholders.

[littlened] 27/11/2023 08:24

Who cares about history.Investment is all about the future

[34adsaddsa] 27/11/2023 08:14

Yes, Aleph screwed over other shareholders by blocking the deal, but Tenaz made a different acquisition following the failure of the SDX takeover so their share price performance isn't necessarily a good indicator of what SDX shares turned into Tenaz shares would have been worth.

Personally, I sold for a bit under 10.5p.

[winnet] 27/11/2023 07:45

Yes, all on track...

[neo26] 27/11/2023 07:43

The disposal is close too.

[chrisdgb] 27/11/2023 07:22

Update……

[neo26] 26/11/2023 21:38

Dollars or pounds.Im saying 12m pounds...

[littlened] 26/11/2023 21:26

Really don’t know,lots of variables.Anything from £12 to £20

[neo26] 26/11/2023 19:14

In your view what value do you think they will get for egypt asset?

[littlened] 26/11/2023 19:12

Irrelevant,deal was voted down by shareholders,end of !