Sdx Energy Share Discussion Threads

[roman2325] 07/12/2023 11:55

We all need to constantly evaluate whether we have made the right decision and weighing up both sides of the argument is exactly the right thing to do. They know they can't find funding so they are repositioning this as a green energy company because you can find funding for that, you can't for carbon. And as Winnet pointed out they if they didnt need funding they wouldnt need the 'wider pool of capital'.

I expect the seller to stop and this move higher. I dont expect this to double or anything close because companies are valued on future cashflows not book today and we have very little visibility on that hence an £8m cap

[winnet] 07/12/2023 11:53

Already a nervous wreck Ned!

I just like to have all the information to make an informed choice... these new lads are young and inexperienced. I have "been there" done it, got the scars.

[littlened] 07/12/2023 11:48

Winnet stop trying to micromanage the company like a back seat driver.BOD are all experienced managers unlike previous bean counters.Dont anticipate what they might or might not do.This company is hugely undervalued .Once it is not then I suggest you sell before you become a nervous wreck !

[winnet] 07/12/2023 11:31

Its statements like this in the RNS that send a shiver down my spine... I wonder what "wider pool of capital" means...

"Moving towards the energy transition narrative also gives access to a wider pool of capital"

I am a little hesitant to add, as if this is such a no-brainer, why is there no interest and why is the share price falling?

[littlened] 07/12/2023 11:29

Yes I agree it is not relevant now.Neither you or I can run the company post Egypt.What we can do is evaluate the value of the company.Assuming the proceeds are well above market then the share price should rise significantly.Otherwise I might make a bid using SDX own cash !!

[winnet] 07/12/2023 11:24

ned - you are bonkers if you think we won't need funding after the Egypt windfall

Anyway, one step at a time, completed by year-end is now almost completely off the table timewise as they need an EGM. "Upon signing a sale and purchase agreement, the Company will issue a further announcement and publish a circular containing details of the Disposal and convene a general meeting".

[neo26] 07/12/2023 10:26

Sdx will have finance. :rolleyesSdx does have the infrastructure unlike Char.Sdx does have an large offtaker who is willing to pay for gas upfront.Sdx valued there whole 55% interest at 6p a share. The remaining is worth 4p a share at least. Add west gharib, cash in a bank and receivables, sdx will get significant funds. Wheres this sdx will find it difficult to raise funds coming from?Citic have 3 large warehouse in kenitra, they need consistent gas, i bet they would be interested in funding us..

[littlened] 07/12/2023 10:23

Roman we won’t need to borrow after Egypt

[roman2325] 07/12/2023 09:43

I think my point is they have just partnered because they couldn't find the financing to fund the venture themselves.

This is the conundrum our BOD need to solve: how to finance this when you can't borrow. I am not sure what the solution is

[neo26] 07/12/2023 09:35

They are offshore morocco and need to spend alot of money to get into production.

[roman2325] 07/12/2023 09:01

Anyone follow Chariot?

[neo26] 06/12/2023 18:00

"A further heads of terms for a larger prepayment amount is currently under negotiation and is expected to be agreed and funds drawn by early 2024. The Company plans to direct this second prepayment towards funding a further multi-well back-to-back drilling programme. As mentioned in the Company's announcement of 4 September 2023, this type of back-to-back drilling, which allows development of gas behind pipe (booked reserves), further increases operational efficiency, reduces costs and ensures that immediate and future demand can be met."This was 13th march rns, once the disposal is confirmed, i bet we get offtake rns too. Gould looks like he has all his ducks in a row.

[winnet] 06/12/2023 16:36

Neo, I've read the document, I don't see many details on the costs of all this... Did you read any finance-related blurb in the new strategy? I didn't.

"If" they don't dispose by month end, the due diligence has failed and they're back to square 1? Am i not right?

[winnet] 06/12/2023 15:22

I am sure that if they get something it will be gone within a year or so if they do a multi well campaign and green energy capex programme, hence funding requirements suspicion... The CEO lad is a banker, he's bound to love a bit of fundraising!

[roman2325] 06/12/2023 15:13

Firstly: how much does it cost to build a pipeline? And how much does it cost to build a green energy infrastructure?

Basically what we do know is they are very good at burning cash, and the proceeds we get from Egypt/the offtake are (in my opinion) unlikely to cover the bill. I would just be surprised if the total proceeds were $15m, and capex over the next 24 months comes in at $15m (for example). I would expect it to be higher

You honestly think as they stand today they are in a position to fund expansion purely from the current portfolio?

[littlened] 06/12/2023 15:06

Roman Why do you think SDX will need to raise money once they have Egypt proceeds ?

[roman2325] 06/12/2023 15:02

Little - I hear you however raising money in O&G in 2023 is very different to running a startup in 2018. Bill Gates is very capable but I wouldn't vote for him to run SDX

I am a 'medium-term' holder but I can see why this is sub 4p

[winnet] 06/12/2023 14:53

there is no info in the RNS about financing, is there NEO?

[littlened] 06/12/2023 14:51

Roman,Have you read the CV of our CEO.He is an experienced entrepreneur not a dour Scotsman or a charlatan

[neo26] 06/12/2023 14:47

Read the strategy rns, for godsake.

[winnet] 06/12/2023 14:15

Hi Roman,
I havent sold out! Just cut my exposure. Got a bit over excited...

The answer is when the RNS is released i will read it, see how much they managed to get it, and see if there's some nasty fundraising or horrendous equity build [there always is with new strategies etc], Then make a decision.

I figure that my knowledge of the business will allow me to make a quick and educated decision but without the risk of holding the full position through the RNS. I don't know or trust these directors.

Hope this makes sense!

[roman2325] 06/12/2023 13:44

That is not worth mentioning Neo because it has been mentioned 94 times this week already

[neo26] 06/12/2023 11:18

And worth mentioning $8m is due from Morocco, the govt and offtakers.Mkt cap 8m is too low..