Sdx Energy Share Discussion Threads

[ll0ydy] 21/9/2018 00:29

Time will tell shareholders but one thing is for sure Paul Welch is switch on a enough to get us a good deal. Keep the faith!

[bountyhunter] 20/9/2018 21:14

The difference here is that we don't yet know what the deal will be or even if there will be a deal as news leaked out somehow to the media necessitating today's suspension and RNS. Hopefully the leak won't skupper the chances of a decent deal being concluded. On the other hand as we have been told we are now waiting for an admission document we could be further along than I am guessing. They could even be finalising an RNS for tomorrow morning clarifying the details of a deal right now (I like to be positive!).

".. suspended from 20/09/2018 1:35pm, pending an announcement and publication of an admission document."

[melody9999] 20/9/2018 21:02

Me too BH. I was lucky enough to benefit from the SQZ deal, bought at 18p and sold when the shares started trading again at 69p. Would be nice to see anything similar here!

[thegreatgeraldo] 20/9/2018 21:01

No real idea what's on offer from BP, but my guess would be some tired old fields which need some TLC - workovers & probably infill wells, perhaps not much of an explo upside? Good solid production & cashflow. Quite possibly a decent chunk of the assets have been down the list when it comes to capital allocation, we'll find out in the coming weeks.......

[bountyhunter] 20/9/2018 20:53

I'll be disappointed if it's not transformational for SDX although negotiations seem to be ongoing. Hope we don't have to wait as long as HNL shareholders are having to wait for an outcome!

[captainfatcat] 20/9/2018 20:27

BP is a motivated seller of the BKR north sea asset due to Iranian Oil company partner Don't forget BP have a significant investment in the USA hanging on to the asset would likely caused repercussions so keen to sell to SQZ.

BP also have a significant share holding in SQZ 13.5 million shares from 2014 as part payment for the Erskine field. I cant remember the actual price but the chart shows around 15p so circa £2M for that period current value just over £12M and probably double that within the nest 12 months once the deal closes.


A creative deal here could well prove transformational for SDX as it has been for Serica.

I'm curious as to what sort of regional infrastructure might be included in the assets.

[bountyhunter] 20/9/2018 20:06

and no sanctions to complicate whatever they may agree, although that risk probably benefitted the SQZ/BP deal price

[jbarcroftr] 20/9/2018 19:51

Egypt is not the North Sea - SDX should expect to do a better deal than Serica

[bountyhunter] 20/9/2018 19:35

yes said $500m elsewhere so I think go with that

[napoleon 14th] 20/9/2018 19:29

The media might hype BP's price to 1 billion, but 500M seems the realistic figure IMO.

That's what I'm looking forward to anyway, but we'll see.
Then we need to know what BP might do with its' majority chunk of SDX.

[dlm2602] 20/9/2018 18:59

cfcc,

Further to my post I looked at Rule 14 and definition of reverse takeover more closely. The rule suggests:
AIM Rule 14 applies to any acquisition by an AIM company which:

(a) exceeds 100% in any of the class tests;
(b) results in a fundamental change in its business, board or voting control;
or
(c) (for an investing company) is a material departure from its investing policy

This seems wider than the example I gave. Specifically (b) states "results in a fundamental change in its business, board, or voting control"

So the fact that the deal (if concluded) does result in a material change in SDX's business probably satisfies the requirement for the deal to be labelled a reverse takeover under aim rule 14. Thus new shares don't necessarily need to be issued as I assumed in my previous post. As others have said it could be structured in a similar fashion to Serica's deal with BP last year. If so, and in my view, this could be very positive for SDX.

AIMO

[ifthecapfits] 20/9/2018 15:54

So hopefully we will be back in a week or so.....

[ifthecapfits] 20/9/2018 15:45

Ouch! Still looks like you will get a second bite here.

[franki8] 20/9/2018 15:43

I actually sold SQZ around september last year to buy more SDX as I thought SDX would have better immediate success... lol 30th of November was not a pleasant day seeing SQZ rise c. 120% on open

Hopefully with have the same here!!!

[dendria] 20/9/2018 15:37

If it is anything like the SQZ deal, their timelines were:

Suspension 21 Nov 17
Admission document & restoration 30 Nov 17

[soulsauce] 20/9/2018 14:55

Not in these now having taken large holding in upl and uog but still look in.
Just wanted to wish you guys good luck. Looks very interesting.

[ifthecapfits] 20/9/2018 14:44

[...]

"Given that SDX’s market capitalisation is just shy of £119mln, given it is viewed as a reverse takeover, traders said the deal must be for assets above that level."

[fozzie] 20/9/2018 14:25

Fingers crossed Capt.

[captainfatcat] 20/9/2018 14:19

Fingers crossed its a similar deal in structure to the deal SQZ struck with BP last summer. There shares were also suspended no dilution for holders and the share price went from the mid 20's to 90p in pretty short order when the suspension was lifted last November.