Sdx Energy Share Discussion Threads

[captain james t kirk] 20/3/2017 09:20

I've updated this

This Egypt concession map isn't very clear and for scaling it's best to take Cairo, shown just above centre where the Nile forks and Suez to the right. Let's say that's around 120 kms.
So if we put the cursor on the tiny red rectangle to the north, that's EGPC in the Abu Madi. So we are presumably somewhere in the vicinity with some fairly noisy neighbours:)

hxxp://www.petroleum.gov.eg/en/Investment/Pages/Concessionmap.aspx

Update:

The first grey block to the north of Cairo is 309, RWE DEA ( a big German oil company) - TANTA, so the town in red, within the grey block, must also be Tanta. Tanta is shown in the diagram on P26 of the Corporate presentation:

hxxp://www.sdxenergy.com/~/media/Files/S/Seadragon-Corp/presentations/2017%20January%20SDX%20Deal%20Presentation%20Final%20Website.pdf

RWE DEA's block immediately to the north 245 is Desuq.

[someuwin] 20/3/2017 09:09

SDX Energy kicks off exploration well in Egypt

“We are extremely pleased to announce the start of this drilling campaign, as well as the extension to the exploration period,” said Paul Welch, SDX chief executive.

SDX Energy Inc (LON:SDX) told investors it has now started drilling the potentially high impact SD-1X well on the South Disouq concession, in the Nile Delta area of Egypt.

The SD-1X well is targeting both oil and gas reservoirs – gas in the upper Abu Madi section, and oil is targeted in the lower AEB & Abu Roash sections. Drilling will take between 30 and 45 days.

“We are extremely pleased to announce the start of this drilling campaign, as well as the extension to the exploration period,” said Paul Welch, SDX chief executive.

“This is one of several activities, across the expanded SDX portfolio, that has the potential to further increase our reserve base and ultimately add to our high margin production base.

“We look forward to providing updates over the course of the campaign."

As drilling begins, SDX also confirms that it has receive a six month extension to the South Disouq concession, allowing it until mid-September to evaluate the well results prior to making a decision to commit to the next exploration phase.

The SD-1X well’s first target is the shallower gas prospect. This is seen to be a continuation of the discoveries in the Abu Madi-Baltim trend and importantly it is substantially de-risked given the correlation to the seismic interpretation and nearby well successes.

The deeper oil prospects, similar to prolific oil reservoirs found in the western desert region, are untested in this northern part of Egypt.

Gas infrastructure is only a few kilometres away from the well location, and as such a new discovery could potentially be turned around quickly into initial production.

[deltrotter] 20/3/2017 08:48

Nice to see this bit:

"We look forward to providing updates over the course of the campaign."

Cheers

Del

[neo26] 20/3/2017 07:56

In the mean time we still have many more updates to come..

[someuwin] 20/3/2017 07:47

Excellent news. Drilling underway.

I was getting a bit concerned about the lack of spud news, but its now full steam ahead.

Plus a 6 month extension to the exploration period.

[someuwin] 20/3/2017 07:05

20 March, 2017



SDX ENERGY INC.

("SDX" or the "Company")



Commencement of drilling operations at South Disouq



SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce the commencement of drilling operations on the SD-1X well at its South Disouq concession in Nile Delta area of Egypt.



The well is targeting gas in the upper Abu Madi section and oil in the lower AEB & Abu Roash sections. Drilling operations are anticipated to take between 30 and 45 days, depending upon what is encountered in the targeted intervals.



The Company is also pleased to confirm that upon commencement of operations it has been granted a six-month extension to the first exploration period, until 19 September 2017. This will allow sufficient time for the SD-1X well results to be fully evaluated prior to making any decision to enter into the second exploration period at South Disouq.

Paul Welch, President and CEO of SDX, commented:



"We are extremely pleased to announce the start of this drilling campaign, as well as the extension to the exploration period. This is one of several activities, across the expanded SDX portfolio, that has the potential to further increase our reserve base and ultimately add to our high margin production base. We look forward to providing updates over the course of the campaign."



About SDX



SDX is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on North Africa. In Egypt, SDX Energy has a working interest in two producing assets (50% North West Gemsa & 50% Meseda) located onshore in the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX has a 75% working interest in the Sebou concession situated in the Rharb Basin. These producing assets are characterised by exceptionally low operating costs making them particularly resilient in a low oil price environment. SDX Energy's portfolio also includes two high impact exploration opportunities, South Disouq in Egypt and Lalla Mimouna in Morocco.

[deltrotter] 20/3/2017 05:19

Maybe ask the company for comment neo? They may say it is somewhere else.

[neo26] 20/3/2017 03:34

from the presentation, it shows our license area, notice the scale at bottom, now google map mahala city, im sure it comes in our license area, mahala city is 100km north of cairo. Look at our license area, is the seismic data ours.











A source at the Egyptian Ministry of Petroleum and Mineral Resources stated that Egypt will announce a new gas discovery in Nile Delta to be located in Mahala city.

[neo26] 18/3/2017 00:49

Whats really interesting is that from the 2d data the COS was 13% in SD-1, after the 3d seismic PW has said it has significantly increased, the question is what does one define as "significant", 30%? 40%? 60%.?

Surprised the auditors haven't given an independent view by now to company, we are almost about to spud and we still have no news.

[deltrotter] 17/3/2017 15:18

Thanks Cash

[cashandcard] 17/3/2017 15:03

deltrotter,


Yes, 3 potential plays here, from top to bottom;

-Kafr el Sheikh (prolific dry gas zone in Nile Delta)

-Abu Madi/Qawasim target (primary gas and condensate target)

-Abu Roash/AEB deep oil play (prolific western desert producers).

You will notice (from neo's image post above) the SD-1X well trajectory is on course to intercept the tip of the KES target before it gets down to the Abu Madi.


Cash

[deltrotter] 17/3/2017 14:48

Tx Neo - that makes it very clear... appreciated.

[neo26] 17/3/2017 14:45

del

page 25 presentation. "Deeper potential identified in Abu Roash and AEB zones which are prolific Western Desert oil producers"

[deltrotter] 17/3/2017 14:33

Cash - so there are three possible zones? Two gas, one oil - on this drill?

TIA

Del

[captain james t kirk] 17/3/2017 13:08

In light of this paragraph from the rns of 14th November and PW's subsequent comments in presentations, I wonder if this has anything to do with the spud delay:

"Subsequent to the announcement on 10 October 2016, the Company can confirm that it has received enquiries from a number of operators regarding farming in to the licence. Although the Company is fully carried on its remaining obligations in the license and is unlikely to farm down any additional equity, it has agreed to let selected companies submit proposals to acquire an interest in the concession. These discussions are ongoing and SDX will update the market as appropriate."

[neo26] 17/3/2017 12:02

CashThe question is will they inform MKT then or go all the way to TD and then inform us.Volume is small today, mm's playing games.

[cashandcard] 17/3/2017 11:56

neo.

Absolutely. Another point which has not been discussed much, the first possible gas resource is in the Kafr el sheikh Zone, above the main Abu Madi target. This will probably be known around 2 weeks from start as its shallow (1,300-1,500m). Initial drillspeed will be fast so an update from this secondary zone *may* be the first strike in the well.

I note, SDX's presentations show a Kafr el sheikh gas-target which should be intercepted in this well before we get to the Abu-Madi.


Cash

[neo26] 17/3/2017 11:36

You have to remember they will get to the gas horizon within 3 weeks.So it will be quick...

[deltrotter] 17/3/2017 10:38

Picked up another three batches at 46 and 46.25.

[deltrotter] 17/3/2017 09:32

Nevertheless - I believe it is cheap at the current price whether it was drilling South Disouq or not.

The delay at SD is just noise at the moment IMO....

[deltrotter] 17/3/2017 09:31

Yup, that is why I started with "Depends what price it is at"

[deltrotter] 17/3/2017 08:28

Depends what price it is at and what they find.

If they find Gas only and the price is less than a £ then IMO it could be very undervalued still. If they find Oil only and the price is less than £1.50 then it would still be undervalued. If they find Oil and Gas and we are under £2 then I think we are still undervalued.

Remember that they expect to be able to get a find into production within 90 days....