Sdx Energy Share Discussion Threads

[deltrotter] 16/4/2017 07:47

Yup, only Dr drill knows what is down there and he will tell us soon enough.

But in this game you at least want to try to stack your odds in your favour. They are drilling in a prospective area, they have the 3d which has enabled them to choose the most favorable location for success, and they have staff and a partner who know the area well and have experienced success in it.......

And over and above that, this company is a producer that is generating huge, for its size, free cash flow each and every day, and with potential too increase that substantially.

A cracking little company in my opinion.

[tournesol] 16/4/2017 07:09

Hi Lauders, think we are on the same page here.

T

[lauders] 16/4/2017 00:34

tournesol - Thank you for bringing a bit of reality to the situation and lowering the expectations to a realistic level. Dangerous to get too worked up until actual results are released. If there is a drop in share price next week or perhaps later I hope I have the funds to take advantage and increase my holding. Don't think I will quite reach your 5% level but I have quite a lot already invested by my standards.

[neo26] 15/4/2017 23:29

ToursolFair point sd1x is not a certainty, the original cos was 13%, but PW said it significantly increased.I think its close to 50% now, worth mentioning big players wanted to farm in even when we already had a partner after upgraded 3d . So that bodes wells...

[cashandcard] 15/4/2017 23:20

This was a media article. Journos are not oil industry specialists. They were reporting on something likely leaked to them from the ministry re a seismic shoot. They called it a discovery. Of course its no such thing until its been discovered with the drilling. They have undiscovered potential resources, not resources OR reserves until a discovery.



Jeez - I can't believe I have to explain this. It was a media article with some clues!



Cash

[tournesol] 15/4/2017 23:09

There's no such thing as "reserves based on seismic". The term "reserves" applies only to oil discovered by exploration drilling AND then validated by further appraisal drilling and perhaps production testing. The news report that is getting people lathered up is ill informed and empty speculation possibly derived from ignorant comments made by politicians/administrators who are simply expressing their hopes.

Also there is too much empty optimism being expressed here about the current drilling, IMHO. AIUI the CoS is about 30% so that means the most likely outcome is a duster.

It's actually 2 to 1 against a discovery being achieved.

I have a large holding in SDX because I think it is very underpriced and will over the next few years achieve a very substantial return for the patient. But none of that makes it in any way sensible to raise false/premature hopes based on badly written reports of claims made by people who know nothing about the subject.

Patience and realism are more useful here than empty headed over-optimism. If you over egg your expectations then you will simply make people more disappointed when they fail to eventuate.

Just be patient.

[cashandcard] 15/4/2017 22:56

Gisjob,It seems someone in the Egyptian ministry of petroleum has leaked to the media a recent seismic surveys outcome. Now SDX's seismic survey was completed some time before 23rd Feb and of course, requires actual drilling - the article clearly states that. More importantly it locates the area and makes reference to the company being in phase 1 drilling, which they need to complete before end of year.It could all come to nothing but the clear markers point to 2-3 companies, of which SDX is right up there. Due to the fact SDX's seismic shoot was in the corner of a massive block - some miles south of Mahalla city - its very-close to the stated location, they (SDX) completed 3D seismic and needed to follow up with drilling to confirm resource and reserve potential. They need to complete phase one before the end of 2017. Uncanny coincidences with the company in the article?It could all be an enormous coincidence - but other than SDX, BP/Dana and Dyas, I can't find anyone else who would tick those boxes.As always, the drillbit will do the talking. I am looking forward to nextweek.Cash

[neo26] 15/4/2017 22:24

Gisjob

If you read the article it states a gas find based on seismic, they are not talking about oil fields. The source is from oil and gas ministry..

[gisjob2] 15/4/2017 21:45

Neo, just pointing out you can't prove any new oil field from seismic data. Need to wait for drill results. The article was from 23rd of Feb so has no Link to the current drilling. We were well aware of the encouraging seismic from the company themselves so the article doesn't add a lot. I own a few shares in this so really hoping the encouraging seismic is bourne out with the drilling. Bought in due to the circle deal and the extremely low production costs here. Would love a new gas find this week too.

[neo26] 15/4/2017 21:09

Tom Sou are two years from production, whereas sdx are already producing, sdx got a ready made asset in Morocco and they own a pipeline. The asset made $13m freecash flow last year on 4.5mmcfd of gas, the company believe they can 4 fold this and current pipeline allows to increase production. If they increase 4 fold and we use current price they receive per MCF then that is $52m freecash flow per year. This is outstanding, by year end they expect to double production to 9 mmcfd.I think sdx is one of the best oil stocks in aim at the moment, they are not only relying on exploration like many do, all infrastructure is more or less set to increase production.

[pauliewonder] 15/4/2017 20:48

I like VOG too and was in SOU but the momentum has all gone and possibly looking to get a lower entry at some point in the future.

[tom111] 15/4/2017 20:43

I prefer imo this co to vog or sou more diversified

[neo26] 15/4/2017 20:16

CashAnd.... Sdx still not released seismic data for SD but have stated COS has significantly increased.I only see this as positive...

[cashandcard] 15/4/2017 19:17

Gisjob,Well aware of the date. The article states these are reserves based on seismic, NOT drilling.Cash

[neo26] 15/4/2017 18:48

TomI agree, but worth mentioning let's say sdx encounter hydrocarbon horizons they do not have to mention until the well is fully drilled.They can just say drilling is on target and we have drilled 7500ft.Sdx is cheap at these prices, even if sd1x is a duster I can see share price being £1 or £1.50 by year end with current producing assets increasing in production.I still believe sdx will buy another distressed asset this year.....

[tom111] 15/4/2017 18:33

I am fully confident that the well will come good.People get too nervous half way through the drilling and begin to have doubts even though the results are not even due yet.Impatience is part of he course for some,chill

[neo26] 15/4/2017 18:28

Gisjib2No one has taken responsibility for the massive find,Note the find is from reading seismic data, so no one has actually dug in the ground yet.Regardless even if the find is not related to us, it bodes well as we are drilling sd1x well not far from mahala city.. Don't you think this is positive?

[ziblot] 15/4/2017 17:33

Why are people talking of another 20% drop when its already down by 10%. If its a dry well, its part and parcel of exploration; lets not forget its almost fully carried. Personally I think they have a good chance of success, aiming for gas and oil at different levels. If not, the share price will still recover. I don't want news next week because more than likely it would be a gas find; Its deeper where we'll find the oil.

[gisjob2] 15/4/2017 17:30

Cashandcard,

Hate to pour cold water on the article but it was dated 23rd February !

[deltrotter] 15/4/2017 14:30

And remember that they possibly have a bigger oil target on the same licence. From Malcy:

"SDX has announced this morning that the SD-1X well at South Disouq in the Nile Delta has spudded looking for gas in the Upper Abu Madi section and oil in the Lower AEB and Abu Roash sections. The well will take 30-45 days depending on what they find, expectations are high and if either gas or oil, or both, are discovered then it will be transformational to the company. It looks pretty optimistic on both fronts, the 3D seismic showed an AVO response which significantly de-risks the gas play and the oil play is ‘pervasive’ in the block, indeed the company already have another oil target drill ready. SD Deep-1X has significantly higher potential in the oil bearing sections and I imagine that they will drill that next."

[soulsauce] 15/4/2017 13:07

If indeed it is SDX then we are in for the ride of our lives. Here's hoping ;-)

[neo26] 15/4/2017 11:39

Don't forget some rather large companies wanted to farm into our project even when we already had a partner and were not looking for one...

[oilandgas1] 15/4/2017 11:37

Cash & Neo26,

Thanks for this info, that is fantastic news and does seem to equate with SDX being the company!thanjs for sharing it!

I am glad I added last week when it dipped.. 😄

[neo26] 15/4/2017 11:13

CashAnother thing that's goes in our favour, our license area is 1275 km2, sdx did seismic on 300km2 which is North East part of the concession and is only 10 km South of where Mahala City is located. Bp and Dana have concessions North East of Mahala, they are about 20 km away.We are only 10km from this supposedly large gas find showing in seismic data, it bodes really well...Dana and BP are not drilling at the moment around their and that leaves us. Bp wouldn't have been waiting for the end of 2017 to get confirmation they would have started drilling multiple exploration wells considering they are very cheap.

[deltrotter] 15/4/2017 10:15

Totally agree cash....