Sdx Energy Share Discussion Threads

[robbiekeane] 23/5/2018 08:41

The companies that PW discussed as bordering our Rabul block were GPC (State owned) to the west and Transco to the north (Page 11 of the recent presentation). I don't recall him discussing TGL at either the AGM or the Investors conference call. He did mention that there are some companies in the area that have a high amount of receivables owing and might provide an opportunity if they wanted out.

[darola] 23/5/2018 05:12

Page 17 shows TGLs netbacks. Circa $20bl at current oil price, so they are clearing around $2m dollars a week off 15kbopd, add to that a 1m bl stockpile that they are now working down (increased from 3 lifts per year to 4) and debt is well covered. Factor in forecasts of $100 oil and the share price doubling could be conservative!

[winston26] 23/5/2018 04:23

TGL surrounds the Meseda block on 3 sides. The upcoming lease line drills are along the lease line between SDX and TGL blocks.

[neo26] 22/5/2018 23:25

DarolaTgl has 60m debt, does indeed look attractive vast majority of sales is oil. They sell their own oil and are not forced to sell to the state.Sdx has no debt, they are making 4m free cashflow per month, they have Moroccan asset which is just too lucrative.I can see tgl doubling from current price once listed on aim. Imho

[thegreatgeraldo] 22/5/2018 17:48

Can't see it from their website, but maybe one of their eastern desert licences neighbours SDX's Meseda, where SDX are drilling what PW calls the 2 lease line wells.

[darola] 22/5/2018 17:40

Good presentation to start with.

[thegreatgeraldo] 22/5/2018 17:38

Seems I mis-heard, TGL aren't in the Nile Delta region. Sure they got a mention somewhere!

[thegreatgeraldo] 22/5/2018 17:28

Darola,

TGL are neighbours, at South Disouq....PW mentioned them at the AGM when talking about gas pricing. Will have a look.

[shakeypremis] 22/5/2018 17:08

thegreatgeraldo
22 May '18 - 12:59 -

Globally, central banks seem to be tightening things up. The printing presses have been mothballed.... just a general observation...

Quite right too Gerald
We don't here Q E mentioned much these days


The scaling back/scuttling of QE and the raising of interest rates globally is HUGE. QE and low interest rates are the only thing that stopped the globally economy imploding further after 2008. QE and low interest rates were life support measures and they are being turned off. This is going to result in a credit crisis, the beginnings of which we are already seeing. Consider the following;

"If all money comes in to existence as a debt subject to interest, how is it then possible to pay both principal AND interest from a circulation that can only ever consist of principal at most?"

Rhetorical question, it is of course not possible. I know you'll all likely call me nuts, but interest causes the monetary system to be inherently terminal. When you understand how Central Banks interact with commercial banks and how money comes in and out of existence then you will know what increasing rates and cancelling QE marks the death knell of the monetary system. It would have terminated itself anyway, but what the Central Banks are doing now will speed the process.

[darola] 22/5/2018 16:53

I've mentioned TSX.TGL on here before, it's has now confirmed that it will dual list on AIM towards the end of June. It's producing 15k bopd in Egypt (80% - same operating area as SDX) and Canada (20%). Its a great turnaround off the back of rising oil. It's heavily paying down debt, optimised it's delivery model (including new shipping contracts) and is expected to announce a dividend later this year off a growing cash pile. share price has just pushed through $3 - strong steady rise for a few weeks now - but still only has an MC of circa £110m. Compare that to TRIN 3k bopd and a £72m MC or LEK 7.5k bopd £105m MC. TGL could make a great M&A for SDX, given the strong relationships in Egypt.

[pillion] 22/5/2018 16:47

thegreatgeraldo
22 May '18 - 12:59 -

Globally, central banks seem to be tightening things up. The printing presses have been mothballed.... just a general observation...

Quite right too Gerald
We don't hear Q E mentioned much these days

[shakeypremis] 22/5/2018 16:32

They will drill Kelvin again next year too. They think there is something close to the drill they've just done.

"The Kelvin-1X location was an ambitious step-out from the crest of the identified structure where we were exploring for a larger stratigraphic portion of the identified trap. Further potential exists within the current structure but in a location that could not be reached by side-tracking the well from the Kelvin-1X location. As a result, we have decided to move forward drilling the appraisal well locations in the original SD-1X structure so as not to delay the start of production targeted for the end of the year. After we have completed the appraisal drilling and established initial production we plan to commence a further exploration programme that will target both the remaining potential in the Kelvin structure along with the deeper oil potential within the block."

Kelvin and oil drilling next year.

[neo26] 22/5/2018 15:31

While it would have been nice to have larger structure with kelvin, sd1x and ibn yunus, you have to rem kelvin only amounted to 50bcf and their is potential for upto 2.5tcf in the license area.Its a long term hold and sure to make you money.Imho

[jinxo777] 22/5/2018 15:02

as promised, I have added just over 50K shares to my holding today (as share price went below 7op, thanks for the gap down!!) - my average is slightly higher than I would like it to be but I am extremely comfortable with my holding. GLA!

[bountyhunter] 22/5/2018 13:52

Malcy's Blog lunchtime update:

SDX Energy

SDX has announced the result of the Kelvin-1 exploration well at South Disouq in Egypt. As I am on the move today I will write up my thoughts in detail tomorrow but having seen the share price this morning I thought it worth a quick comment.

The price fall has in my view overdone the bearish aspect of this well result, which was indeed an ambitious step-out from the rest of the structure and targeting a stratigraphic extension of the previously identified trap. The rest of the work on this prolific block is yet to be done and one, inexpensive duster will in my view make little or no difference to the value of the company.

To put this all into context the Moroccan campaign resulted in 7 from 9 which was better than all expectations and at South Disouq they are 2 from 3 with plenty of upside. With what they bring to the party they are success rates I would take any day of the week. Share weakness is a very good reason to add to holdings, a rare opportunity in this stock and with Brent crude trading at $79.55 this morning and the gas price also delivering top drawer margins in Morocco and Egypt the case is watertight.

[robbiekeane] 22/5/2018 13:51

When has Italian politics ever been stable??? Not sure of the relevance. SDX making good amounts of money and they can now spend it on their bigger discoveries ensuring greater supply and profits. They will go away and analyse this seismic and be wiser for it and make more informed drills later this year.

[thegreatgeraldo] 22/5/2018 12:59

Globally, central banks seem to be tightening things up. The printing presses have been mothballed.... just a general observation...

[ifthecapfits] 22/5/2018 12:46

My only worry at the moment is Italian politics and how this might impact the wider market. Not SDX specific.

[potential] 22/5/2018 12:44

Yep an honest upfront interview on to bigger and better... brill time to top up!!

[neo26] 22/5/2018 12:31

Happy with that interview, upfront no big issue.

[christy41] 22/5/2018 11:41

Latest from PW on Proactive

[ifthecapfits] 22/5/2018 10:54

Bought another 10ks worth. showing as a sell.

[neo26] 22/5/2018 10:51

ShakeyThey took a chance at kelvin and it didnt come through. Now they will get the 4 wells in production by year end.I think kelvin will be drilled next year now along with finding oil.

[shakeypremis] 22/5/2018 10:25

The oil might be a costly drill 11_percent and it probably has a low chance of success. Much better to get cashflow going before going for speculative drill so you don't have to dilute to do the drill and can fund it from cashflow. Slow and steady wins the race and what SDX are doing if far from slow anyway.