Member Info for deeko

I was under the impression no wells were sunk in Guyana? Hence no 'discovery' just yet? If thats the case I wouldn't describe them as cheap at a mcap of £80 million and no revenue stream. But certainly one to keep an eye on for any decent sized in the share price.

Also do they have confirmation of drill or is this projected for Q3 2019?

Jag, thanks for the post. From the RNS, and I may be wrong here, the deal hasn't been struck just yet hence no details for us to feast our eyes on. I would have assumed the suspension would occur once the actual deal has been struck. No problem here, its just an observation that has been bugging me for two reasons;

I have a general interest in oil and gas M&A and the ever increasing creativity that occurs in striking these deals

and two, I'd like to work out the value to SDX so I can weight up how much value I can make out of it.

Also, the team here have done a fantastic job. Great to see a board that actually wants to deliver value

It seems to me the suspension was premature. I posted here back when the deal was announced that the timeline was likely going to be significant and from some of the snippets here it seems to be heading that way. Its possible the team have jumped the gun here, when Serica announced the BKR deal, that was almost a year after the initial 'media speculation'.

All they have done is locked in investors and locked out new money for apparently no good reason. Surely they should have suspended this after the deal to await shareholder approval?

Anyway, although I'm not in on this one... sadly, I'm still looking forward to listening for the announcement of the deal. If Serica has taught me anything, its that the quick money is made from selling when suspension is lifted but the cleaver money is made from holding until true value is realised.

ATB

As a former SQZ'er (Sold out on the Iran sanctions at 900% profit). SQZ sentiment was at rock bottom, despite the company pulling in around 3.5 million a month, this was because of scaling issues Erskine intermittently shutting off production for many months at a time.

The share price was rising because it was fundamentally undervalued and once the cash pile grew to 30+ million, people started to take notice. Interestingly speculation around another deal with BP emerged around 6 months before the deal was detailed in an RNS... unfortunately people were short sighted and didn't take notice.

I would be very surprised to see this come out of suspension any time soon since these deals take a significant amount of time to finalise. But I'll be buying some SDX once suspension is lifted.

*to the toilet :)

Seems that way. ELA seems to attract the very weakest of investors for some reason. the type of folks that need the company to RNS 'everything is going well' every morning and the CEO to hold their hand two the toilet.

It's an oil company, they are producing oil. They have a great activity plan and cash in the bank to fund it. Chill

Meant to be ‘>’

In saying the JV is owed <1 billion $ in capital expenditure? Or $750 million from the 75% working interest? From the presentation this is depretiated at maximum 20% per year upto a maximum of 15% of production. Would be great if someone can clarify this. If this is the case and the company can get production up to 100,000 then GKP becomes a very serious cash cow from the backlog of capex never mind the profit made from the actual production

Will certainly be back however, if the Iran issue is resolved and, once again 65p will be very cheap IMO however, I would rather pay 90p to ensure the deal is certain

Hi NewKOTB, TBF that was November and things have, as you know, changed since then. BP has openly deferred R3 because, whilst many believe the Iran sanction will not impact the deal, any involvement with Iran directly or indirectly will have a significant impact on their Gulf of Mexico assets. BP produces from its GoM assets (from the top of my head) 600,000 bopped which include Thunder Horse, Mad Dog, Atlantis and Na Kika alongside exploration blocks. Additionally a further 500,000 boepd from Prudhoe Bay in Alaska. IMO and only my opinion (not meant as any form of advise) BP would rather shut the field in for the sake of 17,000 boepd and defer the deal than become a target of Trumps adimistation, an open itself unto billions in fines especially after the Macondo incident that has dragged on and on. Therefore, yes 65p was a joke and I was hoping that the deal would transfer before sanctions because Serica doesn't need to abide by those sanctions however, BP has a significantly portion of its upstream business in the US

But production isn't close to 20,000? Much closer to 6000 with Erskine offline and BKR at around 16,000. 170 million is far to expensive if you include the risk of losing the deal, the 2 million per month we are paying out towards Erskine costs with no money coming in (Cost RNS from last shut in). 170 million is extortion IMO but hopefully once things are made clearer we will be back on track

Ohh I see, As said, I traded recently. I was planning on buying and holding for the longer term however, seems sentiment has changed here with the recent "sell" just trying to figure out the logic behind it. Seems to me someone sold their holding for. a nice profit and someone bought the holding to make a nice profit

Traded this one recently for the first time for clarity

Good point, do apologise on that however, I don't actually hold shares here so, do not care too much re what market it is trading on additionally, even if I did hold shares here I still wouldn't care what market it was on anyway because lets face it, its made little difference anyway. Would be great if you could touch on some of the points made though? and if you could include how it not being listed on AIM has made an impact it would be appreciated

Can you elaborate, I do not understand what the issue is with a large share holder selling their shares? Surely they will not hold onto them forever. As I understand it they got 24,000,000 shares at �1 each totalling �24,000,000 and sold them at �48,000,000? I fail to see why that isn't a wise decision? we would do the same no? Then there is the company, clear guaranteed production in the 10,000's, cash in the bank of +$200,000,000, revenue of +$18,000,000 a month and a clear defined strategy to increase production to 40,000 then, 55,000 then 75,000 and onto 100,000 bopd (which is a reasonable depletion plan). All the above makes sense to me, what doesn't make sense is your 'stronger sell signal'. Its investor mentality like yours that makes AIM so one sided not the market makers. I hear it all the time, "sell on good news", "fill yer boots" when news is anticipated, "sell when a large S/H sells" all poor form imo. And its gotten to a point now where, when there is a drill, it goes up in anticipation of a rig contract then drops each day until the drill is completed. AIM isn't manipulated by the MM or the crappy management of the companies, its the investors who think they are ahead of the market running it for everyone else.

23/21 b directly south of Lomond by around 8km, never had a well drilled. 22/24 f directly south of Marnock about 4km no wells in block 30/12 c directly south of Judy about 5 km no wells in block 30/19 within the same block as Affleck Interesting blocks, all next to major discoveries, just hope they actually go forward with meaningful exploration and do not sit on them for years as is the way with oil companies.

Undervalued! its madness, Brent above $80 today and its flatlining. Even my GKP has better sentiment than this one

The iPhone has once again predicted most of that text wrong! But I feel the main point can be interpreted

Personally. I see no point in selling up at this level. Oil is up, major drill campaign ongoing across oml40 and the company is heading towards 13,500 bbl net. All you have to do is visit the NDA website to see the have stated ‘attracting offshore installations and they even detailed the targets’ they are trying to shake the tree and targeting a minor oil producer won’t get anyone’s attention. Clearly ela is of no interest to them. The forcandos terminal will have significantly stepped up security, I imagine they will not want to go through that again! And putting a spin on it like ‘shell is an offshore major’ is ridiculous. Shell is a major whether that be onshore or offshore. Personally I wouldn’t sell a bean here, were talking 13,500 bopd for an onshore oil producer in a block that can produce 7,500 bopd from single wells! When you say it Alain it’s Ludacrous! Offshore they are paying 50 million for wells, tiebacks etc that priduce this... ela are bringing in a jack up and doing work overs at fractions of this cost. The only thing I don’t like is the company seems a little too attached to OML. I calculate that ela will be generating 140-170 million per annum at 10% royalty oil to government and 30% tax (unsure of tax in Nigeria but royalty seems correct from what I find online). It would be great to see them spread the operations sub Saharan but that may come in due course. Just my 2 cents ATB