Sdx Energy Share Discussion Threads

[soulsauce] 18/4/2017 18:18

Am I right in thinking the two oil targets one is a four way and one a three way trap?

PW talks of more gas targets in the Abu in the surveyed area. I wonder if we prove up oil how many more such targets are in the oil horizon not withstanding the SD Deep.

There is no doubting if we hit oil the game changes completely as will the share price. Gl all.

[bountyhunter] 18/4/2017 18:14

no need to split hairs on semantics tournesol, I'm sure you knew what I meant regarding drill results matching 3d as was indicated in today's RNS:

"The 3D seismic data acquired and interpreted over the South Disouq concession has provided a very accurate view of the subsurface as the target interval has come in on prognosis. This provides us with additional encouragement for the deeper horizons where we are targeting oil."

[cfro] 18/4/2017 17:46

Solid finish.

With seven drills scheduled for the first half of this year, then five more in H2 should be plenty of newsflow over next few weeks.

But has anyone seen an exact timetable of what is to be drilled where and when?

[neo26] 18/4/2017 17:45

TournesolThe oil is a bonus, what is clear there are many target areas for gas in the small surveyed area..

[tournesol] 18/4/2017 17:29

Of course the 3D is "accurate" - it is what it is, it can only ever be accurate.

It is the interpretation of the 3D that has potential for "inaccuracy". In this case the results so far indicate that the interpretation/mapping seems to be "accurate".

BUT even if the subsurface rocks are exactly as mapped it does not follow that the geological formation being targetted is actually charged with oil. There might not be a migration pathway from a source, so oil might never have reached the target.

OR there might not be an effective seal, so oil might have migrated to the target but then kept going and ended up somewhere else.

Those are the primary risks - and were mentioned by Welch in his latest video interview.

[neo26] 18/4/2017 17:10

Big trade after the bell, some institution is topping up... :-)

[bountyhunter] 18/4/2017 16:46

just about to say the same thing :) - closed at the top of today's range

[soulsauce] 18/4/2017 16:35

Nice finish.

[bountyhunter] 18/4/2017 15:53

yes this is certainly not a one trick pony ;-)
(look what happened to the SOU market cap based on Morocco alone)

[mac_steven] 18/4/2017 15:40

bestace-I take it you haven't factored in our other assets.We are currently undervalued just on those.

[bountyhunter] 18/4/2017 15:35

yes the NAV would but the current share price includes reasonable prospects/expectations based on the 3d which so far has proved very accurate - imo the price is still low following today's news which has indicated 150-300 bcf gas based on this drill alone (anticipated to double by the CEO, not to mention the lower horizon) and also said a lot for the 3d predictions

[bestace] 18/4/2017 15:30

Sure, and if/when it does double, the NAV will increase accordingly.

[deltrotter] 18/4/2017 15:25

Proactive - note a missing decimal point in one of the figures:

" In a note, Cantor Fitzgerald analyst Sam Wahab described it as an encouraging result and said: “we believe the company has sufficiently derisked the deeper horizons where it is targeting oil.”

Wahab also highlighted that SDX is carried for its share of drilling costs and repeated a ‘buy’ recommendation, which comes with a 78p price target (current price: 55.6p) that includes US$289mln or 11.9p per share for South Disouq.

“In our view, SDX’s shares offer investors a low cost entry point into a growing producer with a high impact, fully funded exploration and appraisal programme,” the analyst said in a note.

“In the current climate, we continue to advocate companies that pursue low cost development / production strategies and SDX has certainly delivered on this criterion, with further running room in the share price to come in our view.”"

[bountyhunter] 18/4/2017 15:22

bestace - also immediately after that he said he expected the 150 to 300 bcf figure to double

[bestace] 18/4/2017 15:20

In the Proactive Investors video, the CEO mentioned a figure of "between 150 and 300 bcf within this current structure". If I've done my maths right that equates to an unrisked figure of between 14p and 29p per share using Edison's $2.5/boe.

Knock off a bit for risk and talk of 80p+ seems optimistic at this stage. IMO

[deltrotter] 18/4/2017 15:20

Still, best to buy into misunderstood stocks before they are understood I guess.

Fill ya boots I say....

[dsmith57] 18/4/2017 15:19

Even after this great news we are only back to where we were just a few days ago!

[bountyhunter] 18/4/2017 15:10

I'm happy with the current situation so long as the accuracy of the 3d holds out re the deeper potentially oil bearing horizon! ;~)
...agree currently undervalued but anticipate a steady rise over the next few days as today's news beds in especially with the further prospects just a couple of weeks away now

[deltrotter] 18/4/2017 15:06

TS - there was a chance of failure! This has derisked it hugely. There should have been a bigger rise IMO.

I would also suggest that because they were so accurate with their 3d and its interpretation, they have derisked their other prospects on the same licence.

Still a hugely misunderstood stock IMO. But that will not last for ever......

[trulyscrumptious] 18/4/2017 14:51

nasnas1. The discovery was as expected!

[nasnas1] 18/4/2017 14:47

Was hoping more 85p at least given the transformational news

[blueball] 18/4/2017 14:33

65p by Friday imo.

[ziblot] 18/4/2017 14:25

Made 4 trades today; none are showing, otherwise as you say the share price would be a lot higher.

[cfro] 18/4/2017 14:17

Thanks for the interview link above.

Have added twice to my holding today. Looking forward to part 2 of this current drill.

[potential] 18/4/2017 14:15

I agree.. this should be at a min of 70p right now!! So top the F up folks!!!!