Sdx Energy Share Discussion Threads

[thegreatgeraldo] 20/11/2017 11:33

Reaches for wet blanket..... worth bearing in mind that this is an initial flow rate from virgin reservoir. To get anywhere near sustaining that sort of flow rate would mean that the KSR-14 is much bigger than thought pre-drill. Let's see how it performs longer term before getting too carried away! ;-#))

[captain james t kirk] 20/11/2017 10:06

This may help:

And not from the horses mouth but one of his stable companions, SDX are awaiting approval from the Egyptian authorities to determine if they can take one of the development wells deeper to test the oil horizons at S.Disouq. Once the original plan is approved by all parties, a definitive decision can be made.

[shakeypremis] 20/11/2017 09:40

The pipeline capacity is 23.5mmscf/day apparently. Trying to confirm if they own 100% of it or 75%. 75% equates to 17.625mmscf/day. They'll be doing about 12mmscf/day of KSR-14 continues to flow as tested (might go higher if they add in the other pay zone I suppose). Maybe they can hit 100% utilisation if they own 75%.

[cashandcard] 20/11/2017 09:06

That's a really good test rate. I was expecting it to be lower - a great result. They are on the way to filling up spare capacity in the Moroccan pipeline.



Cash

[shakeypremis] 20/11/2017 08:59

What was the pipeline capacity? 24mmscf's/day seems to ring a bell with me. I wonder if they can fill it with the other wells? Perhaps a bit optimistic to expect the remaining wells to be as successful as KSR-14 (and probably KSR-15). But you never know...

[neo26] 20/11/2017 08:53

This is excellent news, add the current production and we have rate above 11mmcfd.Getting over $10 per mcf it appears alot of cash is coming...

[griffin81] 20/11/2017 08:18

The good news just keeps flowing

[thelung] 20/11/2017 08:01

What about the rabul wells?

[soulsauce] 20/11/2017 07:57

Great news so bodes well for KSR15 which has highest porosity. And more importantly this gas is highly profitable.

[brasso3] 20/11/2017 07:19

Nice! 6.4MMscfd! :)

That is a oil equivalent of 1066 BOEPD gross.

[thomasthetank1] 18/11/2017 13:38

All - please see below a positive article on SDX Energy that might be of interest.

Shareprophets
SDX Energy offers good upside potential with plenty of news flow – buy
By Gary Newman

Whilst many private investors go chasing rainbows and hoping for one of their oil and gas exploration plays to his black gold, there are actually a number of AIM listed outfits which are already producing, yet don’t seem to be as popular as they are unlikely to generate large share price rises overnight.

These days patience seems to be something which is definitely lacking in the attitude of many PIs when it comes to ‘investingR17; – the reality is most are looking for a quick buck before moving on – but there are companies out there whose shares offer a good risk versus reward pay-off from current levels.

I believe that SDX Energy falls into that category, and that is gradually building what looks to be a decent business in the oil and gas sector in Egypt and Morocco.

During the first half of 2017 it produced 3,812boepd from its assets in Morocco plus North West Gemsa and Meseda, if the transaction to acquire the Circle Oil assets is adjusted back to the start of the year. That generated netback – after the deduction of all costs of production plus royalties – of $13 million, equating to a little over $22/bbl.

Now if we were looking at this purely based upon current production and the amount of net profit that the company generates, then it would be possible to argue that at £102 million market cap it is actually quite expensive.

But the latest set of financials was based upon an averaged realised oil price of $48.73 per barrel and the oil price is now a fair bit higher and is showing signs of strength, or at least consolidation, moving forwards.

On the operational side of things there is also plenty going on, with new production coming on line and further recent exploration discoveries which will now be tested and potentially eventually go into production, plus a number of workovers and developments wells to come in the near future.

The South Disouq gas discovery in Egypt is expected to be brought into production in the first quarter of 2018, plus there will be two exploration wells outside of the discovery area which will be targeting an additional 150bscf of gas, and there is potential further upside from oil in the deeper targets here.

Work is also being carried out in Morocco with development drilling at Sebou, and recently there has been news of gas discoveries at both the KSR-14 and KSR-15 wells, which will now be connected to the existing infrastructure, with updates to follow on recoverable volumes.

There was also a recent announcement of an oil discovery at the 50% owned Rabul 2 well, on the West Gharib area in Egypt, with 101.5ft of net heavy oil pay and a porosity of 20% - which compares favourably to the existing Rabul 1 producing well, which had net pay of 14.5ft and average porosity of 21.2%.

In terms of funding all of this work, the company recently raised $10 million via a placing at 43.75p, and that is enough to carry out all of the work at South Disouq, plus two additional development wells in Morocco and the completion of 3D seismics there as well.

Once South Disouq is online and following the connection of new gas customers in Morocco in the latter part of next year, the company is expecting to be in a position where it is building cash and adding to its reserves in the bank.

In terms of the drilling activities here, I would class it as fairly low risk given the past successes, and it is only wells such as on the South Disouq deeps where there is a bit more uncertainty.

When it comes to the financial and political situation, unlike some others in the region, SDX doesn’t seem to have any problems when it comes to being paid, but there is also a slight risk that could change. Plus of course there is the usual risk of oil prices dropping back and cutting profit margins.

Overall though I can see decent upside potential – both in the short term as a result of the drilling activity and results and longer term as the company grows – and can see value in buying at the current level of 51p on the ask.

[itsriskythat] 18/11/2017 13:01

Most recent MEA Energy insider transactions:

55k at 50p on 19th Sep
50k at 52.5p on 17th Oct
100k at 51.5p on 20th Oct
395k at 49.8p on 27th Oct

[darola] 17/11/2017 21:42

TSX closing at 90c - circa .53p

[neo26] 17/11/2017 21:09

we were told that meseda could be put in production within 30 days of being found, we have yet to hear something on this, they are going to be good flow rates lets wait and see.

Those new pump installations should also be done by now in meseda to double production, the company has gone really quiet on that. Did it work? regardless we found oil in the bakr formation which will offset that.

[haideralifool] 17/11/2017 17:13

wayhay IF your assessment is true then that would be great.

I remember making money when instis had to bail out of Encore oil when the gas storage story petered out and they could not hang around for the drilling. Happy days.

[parisv] 17/11/2017 16:11

bullish share prophets article by garyn -

[parisv] 17/11/2017 16:08

there's an II seller who had 975k left on Monday. Quarterlies due next Friday and flow tests also, that will provide the liquidity for the seller to clear then we're off.

[wayhay] 17/11/2017 15:49

Calm down gents . A large ii is off loading , not because something is wrong , but because they have made a shedload since the ipo and their rules tell them to sell , absolutely regardless of where this company is heading . I,E they have made their 100 % so they move on . Looking at the sells today this has been a done deal between 2 bigboys . I am no expert but you need to relax , and look to q2 18 by then, we should be sitting pretty as a company . Aimo of course .

[paleje] 17/11/2017 11:04

I know which end of the spectrum I'd want to be buying and indeed have been adding and have several times since 23p, admit its frustrating though.

[captain james t kirk] 17/11/2017 10:53

This morning we have been 2p from the 47p and 70p from the £1.20.

[paleje] 17/11/2017 10:48

From 09 Nov, I know it's been pasted before, but no harm reminding, 12 month target GBP 1.20 and a great buy under GBP 0.47. I should cocoa, doubt if we'll get that though. I mean the 47 not the 120:-

Josef Schachter, president of Schachter Energy Research Services Inc. discusses his Top Picks: SDX Energy, Bellatrix and Trinidad Drilling.

SDX ENERGY (SDX.V)
SDX is focused on oil and natural gas production in Egypt and Morocco. Production in Q2/17 was 3,707 boe/d and this should double by Q3/18, as new natural gas production comes on in Morocco (great gas price US$12/mcf versus Canada C$2.70/mcf) and natural gas and oil volumes in Egypt. The company has an active development program in both countries as well as some very attractive exploration upside potential in coming quarters. SDX is debt free and recently was sitting on US$37M before a more active Q3 and Q4 this year. Over the next few years we expect SDX to grow volumes over 10,000 boe/d and generate significant cash flow. Our one year target is $2.00 per share and our next bull market peak target is $5.00 per share. The stock would be a great buy <$0.80 per share.

[captain james t kirk] 17/11/2017 10:31

Yup, I don't do charts and I don't know if Drewster's comment earlier re 55p was a typo but to my mind, based on recent share price activity, the support appears to be around 50p.

[itsriskythat] 17/11/2017 10:31

Looking at the chart since the start of October, it bounces off 49p. Then looking at the chart between the start of July and September, it bounces off 43p.

Taking both of these into consideration, there's an imminent fund raise at 49p!

But I don't believe that.