Sdx Energy Share Discussion Threads

[jinxo777] 23/5/2017 13:07

buys just over 59 published as sells

[tom111] 23/5/2017 12:29

No dilution plenty of cash flow what not to like

[deltrotter] 23/5/2017 12:26

Lots to like in there! No dilution....

[pauliewonder] 23/5/2017 12:11

Good interview. Well spotted Del

[deltrotter] 23/5/2017 11:46

Hot off the press:

[jovi1] 22/5/2017 19:42

telbap

I hold quite a bit on sound a decent amount here, Echo and 88e and generally is better split the investments among few as you can almost guaranty that some will go wrong at some point but one success will make for all in many cases
I sold some of my sound from 47P to 101 as you never know but I still think they are one of the best positioned exploration company in the aim having done some very good deal along the way
lately I start to top up sound again as well as all the other
here I will top up again when the result are out or if the price drop back hopefully at the result.
all eggs in one basket never good.

[thegreatgeraldo] 22/5/2017 19:27

On the reasonable assumption that SD-1X is developed, it'll take another 2/3 wells before the co can put forward a conviction number on HC in place & likely recoverable

[deltrotter] 22/5/2017 19:06

Only 6-8 times smaller tournesol

;-)

[tournesol] 22/5/2017 18:11

I would like to correct my previous statements about the scale of the hydrocarbons discovered at South Disouq by SD-1X. I have worked through every report and published comment and I've spoken to people who are much better informed than I am.

I have concluded that the figures which I reported earlier in this thread as relating to SD-1X actually relate to the wider South Disouq area and include expectations for further discoveries. SD-1X itself is significantly smaller than the figures I reported.

I apologise for any confusion caused by my misreporting. It was not deliberate. I just misheard or misunderstood and I'm sorry about that.

Hopefully the CPR will enlighten us all in due course.

[pauliewonder] 22/5/2017 16:48

Will still be buying at 83p

[tom111] 22/5/2017 16:41

Cantor has 83p target issued 19/5 take you pick,truth is its all guess work imo

[thegreatgeraldo] 22/5/2017 16:33

Only a few mistakes in that Edison piece!

[deltrotter] 22/5/2017 16:21

;-)

Still reckon the brokers are behind the curve on this.....

[pauliewonder] 22/5/2017 16:18

Beat me to it Del!!

[pauliewonder] 22/5/2017 16:17

Edison

SDX Energy has released its first quarter 2017 results, the first period incorporating its recent acquisition of Egyptian and Moroccan assets. As expected, hydrocarbon sales rose significantly, totalling 2.991mboe/d and more than doubling year-on-year, while oil netbacks also increased markedly to $44.4/boe. During the period, the company successfully drilled the South Disouq well, proving a gas resource that could start production within 12 months. We leave our NAV unchanged at 76p/share, and await the results of testing the well in the coming weeks.


Note: The financials above include the (unrisked) impact of South Disouq, which we estimate will require substantial capex in 2017 and 2018.
South Disouq discovery progresses
The South Disouq well intercepted 82ft of net pay with an average of 25% porosity and permeability above one Darcy. Condensate to gas ratios are estimated to be up to 70bbls/mmscf, above pre-drill estimates. The well will be tested in the coming month after the rig is moved off location. Furthermore, SDX Energy is already working on development planning and gas marketing to enable early gas production, which it hopes to commence in Q118. The company is preparing for a second exploration well, targeting deeper oil potential.

Production should increase during 2017
Production in Egypt was below end-year 2016 levels due to a delays to the start of the planned 12 well workover programme at NW Gemsa (we leave our full year estimates unchanged, but are watchful of NW Gemsa where production has declined to 5.3mb/d in the period vs 7.8mb/d in Q116). A work programme at Meseda is targeting a notable increase in oil production by the end of the year. Gross production at Sebou in Morocco was 646mboe/d, but SDX is drilling three development wells to increase this and two low-risk appraisal/exploration wells (one targeting a deviated step-out, one targeting an accumulation adjacent to existing production), as well as two exploration wells at Lalla Mimouna. We note well costs are low (

Valuation: Keeping NAV unchanged
We leave our estimates and valuation unchanged at 76p/share. The results of the testing at the significant discovery at South Disouq will give us a better idea of the extent and commercial value of the field. The aggressive drilling campaign in Egypt and Morocco means that SDX is well placed to use its position to materially increase production by year end and grow value over time. In total, the company plans to drill up to 11 wells in Egypt and Morocco.

[deltrotter] 22/5/2017 16:17

Update from Edison:

[csjcsl2] 22/5/2017 12:54

re cash..my sentiments also, will be staying long for the ride.bought in the low 20s after doing lots of research,very happy with my purchse to date, but if all goes according to plan, we will hit your 200p/300p then your 400p,good luck all

[deltrotter] 22/5/2017 09:51

Agreed cash - I add this morning and will be buying more this week....

[tournesol] 22/5/2017 09:43

CandC

my sentiments exactly

T

[cashandcard] 22/5/2017 09:37

telbap,


Firstly, I've not been invested here long enough to have a good handle on past performance. However, over the last few years during the oil price crash, the entire industry has been in hibernation/survival mode. Arguably, its not a great starting point because you'd have to look back into the 2 entities that merged, SeaDragon and Madison petrogas (but again, 2-2.5years of industry hibernation mask any proper measure to judge them against). What I can comment on is SDX.

I would point out the major achievement over the last 12-18months has been the work on South Disouq block, successful 3D seimic programme and interpretation plus partnering with IPR who agreed to shoulder majority of costs. Then, completing the SD-1X well, resulting in a gas-condensate discovery almost to their geological model. Of course, the major win win is proving the Abu-madi playfairway extends into SD license and several other prospects, mapped via 3D seismic, are now significantly derisked for future drilling.

Looking at what they've followed through on thus far (accretive deals), I see an aggressive eye for compelling opportunities that pop up from time to time. Arguably, the next part of the strategy was pending control of the COP assets (particularly Morocco). I maintain that was a masterstroke of a deal because pipeline has loads more capacity for extremely highmargin gas sold DIRECT to the customer. Its a cashcow just waiting to be exploited. A development programme on the Moroccan assets is a major priority of the company in H2 this year. A workover programme in Egypt NWG, where they have taken controlling position, can now happen as SDX want it to. There is growth potential and I think the future is bright. In my opinion, shareholders are at the start of a journey towards 200/300/400p+ as the assetbase starts to deliver.


Cash

[geoffmanana] 22/5/2017 08:56

Good morning again telbap....I've already sold out of SOU mid 80s' to buy here,EDL and ECHO.
I did very well out of SOU, so it was time to move on....we shall see.

[telbap] 22/5/2017 08:03

Cash, Looking at the planned 2017 calendar here makes me feel like selling what little I have in sou. and buying here!! What's the past performance been like? Have they actually stuck to their guidance and done what they announced they would do? TIA.......TEL.

[vanmorrison60] 21/5/2017 19:21

TSX closed on Monday. Victoria Day.

[deltrotter] 21/5/2017 18:52

The CPR shoud give us a boost as well...

[cashandcard] 21/5/2017 15:10

Neo26,

Given the information sdx have released 're. Composition (70bbls/mmscf) and well psi (3,100-3,200psi) and permeability (1darcy), I imagine a good result is in order. But any number of things can affect that, I'll let those who know give guidance here.

Anyway, I've been digging around. Melrose resources had great success just northeast of SDX's South Disouq licence in Mansoura license. Here is an old update:

-------------------------------------------------

(18th March 2008)

Mansoura Exploration

"During 2007 a total of five exploration and appraisal wells were drilled on the Mansoura concession.

The West Khilala No.7 (Deep) exploration and appraisal well was drilled close to the south-eastern limit of the West Khilala field. The well delineated the eastern limit of the Abu Madi reservoir in the West Khilala field and also targeted an exploration objective in the deeper Qawasim formation. The well encountered 35 feet of gross gas bearing reservoir in the Abu Madi and confirmed the limit of the West Khilala reservoir. The Qawasim objective was water wet and the well was plugged and abandoned.

Two exploration wells were drilled on a structural trend north of the West Dikirnis field. The South Zarqa No.1 well penetrated 56 feet of net pay in the Qawasim formation and was flow tested at rate of 17.1 MMcfpd of gas and 660 bpd of condensate on a 36/64' choke. Reserves in the discovery have been estimated at 47 Bcfe. The North East Abu Zahra No.1 well encountered 73 feet of net pay, also in the Qawasim formation, and was flow tested at a rate of 20.0 MMcfpd of gas and 640 bpd of condensate on a 36/64' choke. This discovery extends across the concession boundary to the north and unitisation discussions on the field have already commenced. Reserves on Melrose's concession are estimated at approximately 19 Bcfe and follow-on exploration potential exists in two other prospects located in the immediate vicinity of the discovery. Plans are being prepared for the development of both these two discoveries via a new pipeline to be laid south to connect to the processing facilities at the South Batra plant.

The Buhut No.1 exploration well drilled in the fourth quarter targeted a Qawasim prospect on the western side of the El Mansoura concession. The well encountered good reservoir sands with minor gas shows but was not considered to be commercially viable as a producer and has been plugged and abandoned.

The West Zahayra No.1 exploration well was drilled in December to test an exploration prospect located to the north-west of the West Dikirnis oil field. The well encountered gas shows in the Qawasim formation and a 90 foot core was taken within the reservoir section. The well was subsequently deepened and, after penetrating a high pressure sand interval, had to be sidetracked due to well control issues. The sidetrack also encountered gas shows in the Qawasim and open hole logs indicated a gross gas column of 35 feet overlying a water leg. The well data suggest that the well has penetrated the flank of a structure which may contain reserves of approximately 63 Bcf in the Qawasim formation. 3D seismic data also indicate that there is further exploration potential in the Qawasim on a geologic trend to the north-east of the well location and also in the underlying Sidi Salim formation. An appraisal well is being planned to prove up the Qawasim reserves in the up-dip area of the West Zahayra structure and to test the deeper Sidi Salim potential"

----------------------------------------------


The South Zarqa test is interesting as it was a small field and delivered at good rates. Elsewhere, the well psi for South Zarqa is reported as 2,716psi.


Cash