Sdx Energy Share Discussion Threads

[deltrotter] 16/3/2017 20:55

Better to be undervalued than valued fairly?

[neo26] 16/3/2017 12:33

I think the share price massively undervalued, the circle assets alone valued at 35p per share, the rest of our assets are ONLY value just 12p.We have receivables around $24m and cash around $18m. And company expecting to generate $31m free cash flow end if 2017.Currently producing 4705bopd, end of month/early April production will increase by around 900bopd in meseda.Its cheap..

[neo26] 15/3/2017 23:28

does anyone know how much it cost to drill a well in morrocco?

Did PW say if they encounter dry well it will only cost them $750k, was that for meseda?

[neo26] 15/3/2017 22:31

Exactly the one with Malky he says as soon as ex Apache employee identifies possible oil bearings sdx has offers from large players to farm in.

[deltrotter] 15/3/2017 19:15

Exactly my line of thinking Cash... I watch the interviews with the CEO and each time he almost has to catch himself from smiling when he is asked about South Disouq...

[cashandcard] 15/3/2017 18:41

deltrotter,Looking at the surrounding area, the companies initial assessment after 3D seismic, I think you're spot. Based on 3D, they talk of 'several' prospects. I'm calling it as I see it, I think we could be looking at undiscovered resource potential, with gas/condensate in low tcf and perhaps a couple hundred million bbls of oil. Could be wrong but it's the vibe I'm getting from all the known data and interviews.Cash

[deltrotter] 15/3/2017 18:23

Only dr drill knows Soulsauce, but it is a massive licence area in a country that has produced some great resources over the years!

Fingers crossed as ever....

[soulsauce] 15/3/2017 18:16

Yes del hydrocarbon ground zero ;-)

[deltrotter] 15/3/2017 18:06

I think South Disouq has all the hallmarks of being a massive opportunity - not just SD-1

[neo26] 15/3/2017 17:35

sneaky 160k buy at 16.45.

[neo26] 15/3/2017 16:42

on paper this sd-1 well looks interesting two targets oil and gas. Big boys wanted a piece, thats a fact....

[soulsauce] 15/3/2017 16:28

Agreed neo.

[neo26] 15/3/2017 16:21

soulsauce

another 3000 bopd asset will do, if they can get asset anywhere near the price they paid for circle one, it will be a remarkable success.

[soulsauce] 15/3/2017 16:10

And the beauty is here chaps, although it would be disappointing, if SD turns out to be a duster then any downside (if) will be very limited and very short lived.
It is highly likely that PW already has his sights on the next distressed asset.

[cashandcard] 15/3/2017 15:54

captain,

I think once folk realise this well could unlock upto 1tcf in resources (gas condensate and oil), there will be a big move here. Just look at Aminex, once the discovery was announced, the company rallied towards flowtesting outcome. Another important note, their geological model for the block will be validated. There are several other prospects out there.


neo,

OK.

Cash

[neo26] 15/3/2017 15:36

cash

they have to drill sd-1 by april thats why they are doing it this way!

Planned worked in Morocco is q3 it might he earliar probably late q2.

[captain james t kirk] 15/3/2017 15:29

cash

I don't want to over egg the pudding but they do seem spoilt for riches and as you say the Morrocan assets are incredibly profitable.
I know it's a well worn phrase but this does seem to be inexplicably off many peoples radars. Or should I say scanners :)

[cashandcard] 15/3/2017 15:27

captain,

Yes. But I think the focus should be on that for while.


Cash

[captain james t kirk] 15/3/2017 15:26

cash

Have you seen this:

hxxp://www.newswire.ca/news-releases/sdx-energy-inc-sdx-or-the-company---egypt-and-morocco-operations-update-612516043.html

"Morocco
Following its recent acquisition of certain assets in Morocco, the Company is reviewing options to accelerate the drilling campaign originally planned for 2018. It is currently undertaking an internal review of the area's identified prospectivity and high grading the prospect portfolio. Concurrent with this, the Company is surveying the rig market to determine timing and availability of suitable equipment for these operations. It is the Company's objective to accelerate drilling and increase gas production in Morocco during 2017."

[cashandcard] 15/3/2017 15:15

neo26,

Totally agree. I would be happy if they delayed Egyptian ops after SD-1 drill and launched an exploration/development campaign in Morocco. Its the safer & commercially more attractive of the companies 2 major areas of operation. The cashflow and profitability is breathtaking, $1 to produce and $8-$9 to sell, wow!

Cash

[neo26] 15/3/2017 13:52

The interesting bit is just the circle assets, the Egyptian asset is bringing $8m free cash flow per annum and the Moroccan one is bringing $13m pa, I think there is a fantastic growth opportunity in Morocco as the numbers suggest. Don't forget those receivables from the Egyptian govt.The assets were purchased for 30m its was a steal, this company is undervalued and even if worse case the sd1 which we are carried for comes in dry we will still be very cheap...PW on Malky interview said that they may bring exploration drilling in Morocco earlier or it maybe a bigger project this year .Exciting times indeed....

[cashandcard] 15/3/2017 12:07

Q3 2017 - in the Jan presentation.


Cash