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EXCLUSIVE: Alastair Smith, Avacta Group CEO gives an Operational Update


SDX ENERGY INC. Share Chat (SDX)



Share Price: 57.50Bid: 57.00Ask: 59.00Change: -0.50 (-0.86%)Faller - Sdx Energy
Spread: 2.00Spread as %: 3.51%Open: 58.00High: 58.00Low: 56.00Yesterday’s Close: 58.00


Share Discussion for SDX ENERGY INC.


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Alexios
Posts: 9,117
Opinion:No Opinion
Price:57.50
Sdx
Today 17:34
Another @BP_plc scoop. Co. is in talks to sell some mature Egyptian oil fields to SDX Energy for ~$1b, bringing it closer to it's $5b-$6b divestment target. Story with @DNair5 on @TheTerminal #OOTT

@KellyGilblom
 
Southmead
Posts: 76
Opinion:No Opinion
Price:57.50
Egypt BP Assets
Today 17:28
It looks more and more like a copy of the Serica deal. Mature onshore oil fields that require micro management and the application of new extraction techniques. Transfer of Egyptian production staff into SDX. A capital loan equivalent to the purchase consideration, repayable out of future profits and revenue. Shared upside development potential and significant provisions against old wells. I would guess at around 30,000 bopd volume to come across, valued at $600m per annum. This deal, if it happens, will transform SDX over a period of about a year into a major player in Egypt, quadrupling 2018 year end production volume at a stroke and launching SDX into the mid cap valuation in excess of $1000m. All IMHO of course.
I found the following reports:-
'Reuters reported earlier in the year, citing banking sources, that BP is seeking buyers for its stake in a 50-year-old oil and gas business in Egypt, then estimated to be worth around $500 million.
It was not immediately clear which assets SDX was in talks with BP over.
The so-called Gulf of Suez assets have been on sale for a few months and BP is hoping a deal will raise about $1 billion. Divesting the Egyptian onshore fields could be sensitive as they employ thousands of local staff.'
Urraca
Posts: 1,868
Opinion:No Opinion
Price:57.50
RE: RNS
Today 17:18
Just got in and saw this. Bit of a shocker. I for one hadn't seen any press speculation. The Circle deal as good, and PW hasn't been a dummy wth SDX, so ai hope this pans out. Not sure what it will mean for reserves, but does this mean a ten-fold increase in production from where we are now? So long as it is not matched by a ten fold increase in number of shares in issue, or whatever the proportion is, it should be value added. £1 on resumption of trading?
Doubler
Posts: 513
Opinion:No Opinion
Price:57.50
RE: RNS
Today 17:01
PW would not be going for this unless it was a bargain. It is a buyers market also as BP want to get into bigger prizes and divest "little" assets like this. Also BP cannot run smaller assets efficiently, that is a well know fact. They struggle with bigger assets also!
Chislehurst
Posts: 46
Opinion:No Opinion
Price:57.50
RE: RTO
Today 16:37
Been digging around and the assets that BP have been looking to divest are it's stake in it's 50 year old joint venture with the EGPC which is the Gulf of Suez Oil Co. (GUPCO). The BP / EGPC joint venture produces over 70,000 bpd and 400 Mmcf/d of gas. I wonder if this is the target? With oil at over $70 pb this would seriously propel SDX into the bigger league.
Richard1032
Posts: 111
Opinion:No Opinion
Price:57.50
RNS
Today 16:21
OK, I was not expecting this. PW has been an amazing ceo so far and I don’t expect that to change so I can only see this as a positive. As with everything in AIM there me be some short term negatives to overcome but hopefully not.
workover
Posts: 1,039
Opinion:No Opinion
Price:57.50
RE: SP
Today 15:22
Nope ! Too much of a conspiracy theory ! Also beyond illegal...
ilyaa
Posts: 36
Opinion:No Opinion
Price:57.50
SP
Today 15:19
Is it possible that some BP's buddy holding shares in SDX been persistently selling for the purpose of keeping the SP low so BP would get a better deal? Or is it too much of a conspiracy theory?

Either way this better be a good deal!!
Chislehurst
Posts: 46
Opinion:No Opinion
Price:57.50
RE: RTO
Today 15:03
Exciting times ahead and there was me thinking we're entering a quiet period....I'm sure I heard PW mention a couple of months back that he wanted to build SDX into a $1bn company then look to sell, maybe he has changed his mind and is looking at $5bn...
Thelagerkhan
Posts: 614
Premium Chat Member
Opinion:No Opinion
Price:57.50
RE: RTO
Today 15:01
Hi Chrismar, sorry not good with links, just google “Reuters bp Egypt seeking buyers”.
No doubt there will be many amounts bandied about until the deal is announced.
I am sure that Paul would not contemplate a deal if this size unless it was very good for shareholders.
telegraphist50
Posts: 773
Opinion:No Opinion
Price:57.50
RE: RTO
Today 14:59
Hopefully it won't turn out to be bonkers, bonker!....;)
bonker99
Posts: 42,868
Premium Chat Member
Opinion:No Opinion
Price:57.50
RE: RTO
Today 14:58
Always thought/knew there would be an acquisition here but that sounds pretty epic :)
murrie78
Posts: 1
Opinion:No Opinion
Price:57.50
Highlights Serica Deal
Today 14:42
- Transaction effective from 1 January 2018; completion
targeted for mid-2018 subject to regulatory, government and
partner consents
▪ Initial Consideration of £12.8m cash payable on completion
▪ Deferred consideration payable against performance of Rhum
R3 well planned for workover in 2018
▪ Additional earn-out structure enables Serica and BP to share
risk and benefit from future asset performance
▪ All cash considerations expected to be covered by net cash
flows from the acquired assets
▪ Gas prepayment facility of up to £16m provides further cover
for working capital at completion and for hedging costs
▪ Decommissioning cost of existing assets retained by BP
▪ Serica to pay BP additional consideration equal to 30% of
such costs at time of decommissioning net of tax, capped at
Serica’s net cash flows from Bruce, Keith and Rhum
▪ Reverse takeover under AIM rules; Serica’s shares suspended
pending publication of Admission Document and General
Meeting to approve transaction
NewKOTB
Posts: 695
Opinion:No Opinion
Price:57.50
RE: RTO
Today 14:42
Would like to see a deal to mirror SQZ latest and that would be a mega deal indeed. I see no reason why it can't be !!!

Alternately, could see the deal structured in part shares for BP as payment, similar to a historic deal with SQZ. Very small placing to keep the big boys happy at c60p with a RBL for the rest.

gla
matchmade
Posts: 12
Opinion:No Opinion
Price:57.50
RE: Similarity to Serica
Today 14:41
I think Serica tripled in price because of some post-purchase discoveries and the recovery in POO. I gather they are technical specialists in recovering more oil than expected from old offshore wells: they believe they can make BP's North Sea wells last much longer and that there's scope for new discoveries too.

Of course the deal's not done between SDX and BP and a lot depends on the price paid and other terms. But on the face of it the deal makes sense for SDX regionally and for its experience in re-working old oil fields. In one leap SDX will become a major player in Egypt's oil market and exports and maybe we'll get a better price for our SD gas too, as the Government pays more to larger producers?

I'm completely unsure though what all this means for existing shareholders . . .
littletrader
Posts: 256
Opinion:No Opinion
Price:57.50
South Ramadan result due
Today 14:40
Maybe a good time for them to release results of SRM-3 which are due any time and which we all expect to be a duster......get that bad news out of the way while suspended!!
Southmead
Posts: 76
Opinion:Strong Buy
Price:57.50
RE: Similarity to Serica
Today 14:38
Personally, I think that this will be fantastic news for shareholders.
The twitter 'leak' or speculation says that the BP deal is structured in a similar way to the BKR deal that BP did with Serica earlier on this year. BP have fully funded that deal by way of payment from the ongoing proceeds of oil and gas sales. The Serica shareholders suffered no dilution and the value of the business was increased hugely through a massive increase in Reserves and production volume.

Just wait and see, Well Done PW
legache
Posts: 555
Opinion:No Opinion
Price:57.50
RE: RTO
Today 14:33
One would assume is that the deal will be value accretive for existing holders. Lets face it, Circle was a great bit of business. We have to trust the board to do good business on our behalf. No reason why they'd screw us.
NewKOTB
Posts: 695
Opinion:No Opinion
Price:57.50
RE: RTO
Today 14:32
No real volume preceding the RNS, so hopefully a watertight ship will mean any placement will have very little discount , if any.
chrismar
Posts: 11
Opinion:No Opinion
Price:57.50
RE: RTO
Today 14:31
My figures are from the Bloomberg article linked to via Twitter below.
AP-Invest
Posts: 498
Opinion:No Opinion
Price:57.50
RE: RNS out
Today 14:30
The company already has infrastructure and assets in north Africa. Producing great margins in both Egypt so the infrastructure is already in place which should improve margins for a new acquisition... PW said a while back he wants a big deal which will require financing but any deal which improves MCAP by about 2/3x will create shareholder value... obviously i am just speculating, at present.
The company is in a strong position... it's not your typical AIM company with 30m debt and 5 m revenue I think after all of this SDX may come off AIM onto main market. It doesn't require placing just to keep the lights on... it is seeking out a placing or a way of financing for a larger asset which they think will create significant value towards the company... surely this must be a good thing?
Thelagerkhan
Posts: 614
Premium Chat Member
Opinion:No Opinion
Price:57.50
RE: RTO
Today 14:29
According to a Reuters article the BP business was worth around $500 million.
chrismar
Posts: 11
Opinion:No Opinion
Price:57.50
RTO
Today 14:15
Using round numbers here...

SDX valued at £120m.
BP want to raise £750m from the sale of their assets and are willing to loan SDX £225m.

It certainly looks like what is being (potentially) bought is significantly bigger than the current value of the company.
AP-Invest
Posts: 498
Opinion:No Opinion
Price:57.50
RE: Rns
Today 14:15
BigBiteNow - You may be right, I am not really in the know as much recently.
Otterman
Posts: 11
Opinion:No Opinion
Price:57.50
Similarity to Serica
Today 14:13
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=SQZ&ArticleCode=v43wfvsq&ArticleHeadline=Purchase_of_BP_interests_in_Bruce_Keith_and_Rhum

Serica did a big deal with BP and suspended the shares just before, looks a bit similar. BP were very supportive in the funding of the deal and it resulted in the Serica share price nearly tripling, although currently a bit held back due to Iranian links.

Hopefully its positive news.




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