Sdx Energy Share Discussion Threads

[griffin81] 25/4/2017 07:50

Someuwin, thank you for posting.

It's important to remember SDX owns the pipeline at Sebou which is currently carrying 6MMscf yet has capacity to carry 24MMscf. The margin is currently over 90% with a cost of gas at c.$1.0 being sold for $9.90 per unit in 2017 which increases to $12 per unit in 2018.

The cash generation here based on existing production is significant ($31 million net cash in 2017 and $42 million net cash in 2018). Any additional gas production in Sebou goes straight into the existing pipeline and straight to the bottom line at almost obscene levels of margin.

Based on existing cash generation alone this year and next the M.Cap should be double the existing level. Which is before considering additional generation potential in Sebou, the material gas find announced at SD last week and the potential for oil, and the exploration of the remaining 75% of SD in future. The M.Cap is currently disconnected from reality and as the market wakes up to this the share price will naturally appreciate to the correct level. SDX is now my biggest holding and I expect this to be a star performer in my portfolio this year and next.

Griffin

[bountyhunter] 25/4/2017 07:47

tournesol - usually I do but am restricted to my mobile this morning, key points and a link may have been better I but somuwin post was useful to me this morning and I'm sure to some others too;too busy right now to argue further!

[deltrotter] 25/4/2017 07:45

Yup, investegate for me every morning....

Great news today - SDX is far from a one trick pony. The cash flow they are and will generate in Morocco is fantastic.

[tournesol] 25/4/2017 07:42

Bountyhunter

every serious investor checks the RNS feed at 7 every morning

and of course it's available on your mobile device

just check Investegate.co.uk or any of the many other services that stream RNSs

[bountyhunter] 25/4/2017 07:35

Thanks for posting the rns someuwin, it was very useful as bought it to my attention and the rns was not directly accessible on my mobile device.

[pauliewonder] 25/4/2017 07:31

Agree Peter, today's announcement gives a reminder that SDX is not a one trick pony. It's going to be a busy year for SDX and hopefully they will be successful in the 7 drills as Morocco is clearly a good, stable place to be operating. Again de risks the overall company rather than relying solely on Egypt.

[petergennery] 25/4/2017 07:25

Logically there's no sustained reason why it should drift down, all this talk of oil is a relatively new thing, many on here believe the price doesn't even reflect the current gas status

[tournesol] 25/4/2017 07:24

For goodness sake, SOMEUWIN, it's utterly pointless to cut and paste RNS announcements. By all means give us the headlines but not the full text. But that said, You should at least say what you think about them.

I think the Morocco news underlines

1) the scope and scale of SDX's portfolio
2) the richness of the short-medium term opportunities at SDX
3) the determination of the management to drive ahead at full speed

and consequently implies further share price strength in both short and medium term.

[soulsauce] 25/4/2017 07:23

Nice update. Confirmation of 7 wells in Morocco this year.
At first I thought it was an SD update.

[milliecusto] 25/4/2017 07:22

So no clear news on the oil,maybe drift down a little till we get news next week..

[petergennery] 25/4/2017 07:20

Nice proactive update from PW, perhaps not the one some were hoping for but it's looking very bright over the next few years

[lauders] 25/4/2017 02:24

I am with milliecusto. Not sure why sensible posts are voted down LOL. If there is a bigger dip here those with confidence should welcome the chance to top-up. I certainly will if I have funds available at the time, so personally I would like the share price to remain around these levels or shock/horror even go down (queue the down vote LOL) so that I can take advantage. Probably will not have the opportunity to do so but watching with great interest!

[neo26] 24/4/2017 16:25

Not sure bout that, I think it should move next 4 days now.. In anticipation for oil results, rem its bank holiday next Mon...

[milliecusto] 24/4/2017 16:07

It's healthy correction,probaly will touch 60-63 then back up..

[borg45] 24/4/2017 15:36

This is pure manipulation by MM SDX is so undervalued and has unbelievable potential it's likely to be snapped up by one of the big boys sell at your peril

[neo26] 24/4/2017 15:19

SoulsauceI don't see any significant trades for this to go red, but it has been blue for the last 4 trading days.Trend is upwards, will continue doing this week..IMHO.

[soulsauce] 24/4/2017 15:14

Some nervousness ahead of the oil horizons.
Buy more on drilling results whatever it is. Still undervalued at this level.

[hiddendepths] 24/4/2017 15:04

I'd better go and lie down. Getting an urge to buy more!

[neo26] 24/4/2017 12:45

This stock has the momentum now with results out early next week can see it only go further.

Like I said this can be huge..

Worth noting company believes in the surveyed area of block there are between 300-600bcf of gas that is 53m-106m boe.

Last week gas find at sd1x company believes they have found between 25m-50m boe. A very good find indeed...

Don't forget these deep horizons, up to 100m barrels of oil...

[saw89] 24/4/2017 09:28

Big buyer - Delayed big buys is a consistent trend of last week and fully expect this to continue. Sell at own peril.

[deltrotter] 24/4/2017 09:26

A buyer I think hiddendepths.

Last news was pretty transformational for this small company. We had been held back for months by a placing seller and thus were undervalued - this is simply a rerating IMO (and with much further to go) and the inst's have spotted it.

Edison in their research note last week talk about a step change in cash flows on getting the gas find to market. A step change?!?! I thought the existing cash flows were pretty damn good!

Oil, if it comes, will be a juicy (very) bonus....

[hiddendepths] 24/4/2017 09:17

Trading this morning is interesting again. Clearly we have had selling,probably a bit of profit-taking but also a seller in some size I reckon. The MMs have been ready buyers. It looks as though the seller is either finished or close to it now and the buyers are having more sway.

When marketmakers want to hide their positions it's often hard to discern what's really going on. There may in fact be a big buyer rather than MMs short-covering.

Either way I would guess that the upward movement is likely to resume shortly.

[neo26] 24/4/2017 09:14

She is very temperamental today(sdx)..Expecting a good week...

[deltrotter] 24/4/2017 09:07

Yup, from Page 26 on their most recent presentation slide:



South
Disouq
-
Summary
Onshore Nile Delta Egypt
•
Transformational Exploration potential
-
320 BCF (
Pmean
) net to SDX’s 55% interest
•
Deeper oil potential identified within the Abu
Roash
& AEB horizons (prolific producers in the Western Desert)
•
Exploration well expected to spud in Q1 2017, well cost carried by partner (IPR)
•
Domestic gas demand outstripping supply, importing LNG to satisfy demand. Anticipate local gas prices to increase
•
Concession located within existing gas infrastructure, main gas transmission lines transects the block with
substantial spare capacity
–
potential for fast track monetisation.
SDX has material exploration upside with moderate risk exposure
Page
26
•
Three major trunk lines run through concession
•
Transport options available for gas, oil, and condensate
•
5km from SD Deep
-
1X location; 11km from SD
-
1X
•
TD to first production in months