Sdx Energy Share Discussion Threads

[matchmade] 22/3/2019 15:10

Do the discoveries in Morocco really cost a fortune? PW claimed they pay for themselves in a year (less with the new more efficient exploration rig) and the low cost of production at about 10% of sales receipts makes them very profitable. What's been lacking is sales volume in Morocco, but with new customers joining and SD coming on stream, adding $20 million of sales (mostly pre-tax profit due to low production cost), SDX is going to become very cash-generative over the next year.

Yes, all extra earnings have been going on capex, but most of that's been pipeline-related, so once built, that's it and new discoveries can be added very quickly without the need for much new capex.

With new fixed gas contracts for five years now in place, the profits should really start to roll in now. I say wait another year before giving in.

[thegreatgeraldo] 22/3/2019 14:58

Nope, "all" the Moroccan discoveries aren't "pretty small fry". & the wells are very cheap....

[hiddendepths] 22/3/2019 14:50

Thanks for the link to to Malcy's interview with Paul. Here is malcy's analysis of the situation. I must say I agree with him and think the knockers on here are missing the point... but what's new. Delays are commonspread (I know!) in this industry and generally worse in Africa. It doesn't usually affect the investment case - indeed, I was expecting such a delay on SD and it didn't stop me investing. People are so short term these days - I wonder if the whole concept of investment is fading away. Anyway, over to Malcy!

Full year results from SDX this morning and whilst almost all the data was already known they were a very impressive set of numbers. Net revenue was up 37% to $53.7m and more importantly netbacks were up to $41.7m ($28.9m). Cash was down slightly to $17.4m ($25.8m) but that figure is also good given the $44m invested by the company last year. Production was 3,574 boed last year but will double this year with the bringing on of South Disouq where the central processing facility, the 10km pipeline and the four well tie-ins are complete and ready to start production of 50-60 MMscf/d in the middle of this year.

In Morocco business is going extremely well, SDX has picked up three new customers recently and are expecting two more this month, the Peugeot factory should go fully operational in May thus making suppliers, who also take SDX gas keen to deliver. The target of production by the year end of 9-11 MMscf/d may therefore be achieved earlier than expected and with new customers paying towards the top of the $10-11+ range the economics look stunning. More importantly, SDX has announced that it is restarting its drilling programme in Morocco with a 12 well programme in the autumn of which three may be in this year.

The drilling campaign in Morocco, along with a number of exploration and infill wells in Egypt are all funded internally by SDX coming from existing cash balances and free cash flow which is helped by a 36% fall in receivables during the course of the year. With South Disouq coming on-stream in the middle of the year and the Morocco campaign scheduled for 3Q 2019 the stage is set for SDX to flourish and they are plenty cheap enough at the moment so upside progress of a substantial nature should be made.

[the drewster] 22/3/2019 14:24

A bit disingenuous saying all shareholders made money. Anyone buying from February 2017 is underwater.

[kaos3] 22/3/2019 13:54

they have good communication with both big shareholders. consulting them on business, getting opinions ...

you could be right as they are almost admitting sdx being partially tun by them

[shakeypremis] 22/3/2019 13:44

It's becoming comical and bordering on unbelievable. Are they intentionally stalling to allow the two main shareholders to take this over easily after delist or at the very least buy up cheap shares before SD comes online.

[swindon41] 22/3/2019 13:39

SD now on stream H2 and not H1? Appreciate Egyptian timescales etc but PW credibility looking questionable imho. Am long SDX as this is a solid cash generating fully funded businesses, but disappointed in timescales slipping again and again on their major new asset. Doh!

[haideralifool] 22/3/2019 12:53

TSX listing supposed to cost $500k to $750k annually

[thomasthetank1] 22/3/2019 11:10

All - please see below a link to an interview of Paul Welch, CEO of SDX Energy, and Malcolm Graham-Wood, Malcy's blog, on Core Finance TV.

[ifthecapfits] 22/3/2019 09:52

lol - every village has one.

[hiddendepths] 22/3/2019 09:33

Brilliant and insightful analysis PJJ71.

[pjj71] 22/3/2019 08:23

Back to 20p

[the drewster] 22/3/2019 08:05

Agree, 2019 is all about South Disouq and delivering within credible limits of the plans.

[hiddendepths] 22/3/2019 07:43

Solid and workmanlike set of results. Not exciting but continuing to build at a decent rate.

[jimboau] 20/3/2019 09:42

Pressure gone from TSX de-listing, I bet many there are oblivious to it?

[serabi_gold_srb] 20/3/2019 09:40

Serabi Gold (SRB) Beat the herd.

Undervalued and starting its breakout....

25m mkt cap
Priduction currently around 40,000 ounces gold PA
Plans to increase production to around 100,000 ounces PA within 2 years
Generating circa 1m USD per month net for gold production (around 4,000 ounces a month)
Gold reserves just upgraded by 40%
Stock tightly held
Very quick to move on any buying interest

See latest presentation from PDAC conference - March 1019

[hiddendepths] 20/3/2019 09:39

Agreed Andy.

I note that buyers are having to pay more than the ask price now.

[andyforster1] 20/3/2019 08:59

Pressure from TSX delisting announcement has gone. Natural re-rate back up now in motion. Easy hold now till Q3 with very little operation risk. 10k boepd target set and fully funded.

[hiddendepths] 20/3/2019 08:41

Some persistent little bits of buying the last couple of days.

[the drewster] 17/3/2019 14:36

Some (good) news wouldn't go amiss ... what a difference to Las year

[homebrewruss] 13/3/2019 15:22

Erm, just think of it as a good time to accumulate :)
I've been doing that whilst it's quiet.

Once new production comes on stream things should start moving and then we have more drilling to come later in the year.

People are probably just waiting somewhere else until then. Perhaps another acquisition might come our way in the meantime..

[ifthecapfits] 13/3/2019 15:05

Seriously letter my folio down this share. Been quiet for an age. Where's the news any news? Come on BoD what you up to?

[the drewster] 08/3/2019 14:58

tipped by share prophets