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This is a shake out. Most O & G getting hammered due to the Saudi / USA spat. I probably hold more than most and it is painful in the short term. I am here for the medium and long term so just take it on the chin. SDX will bring us returns, the figures speak for themselves. The oil industry is cyclical and coming out a slump so for the next 3+ years will be rising. Waiting for the 8000+ BOPDE announcement soon: that's a lot of cash flow!
The time to drill a well is similar to “how long is a piece of string”! Been in drilling management for 37 years. Timing is just a guess. On the BP deal: better no deal than a bad deal. I have now stopped looking for my Verbier Chalet!
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!
SDX - Great Q2 and H1 2018 results
▪ Netback/gross profit of $19.3MM increased by US$6.3MM (48%) over 2017
▪ Cash generated from operations increased by $9.2MM (83%) over 2017
▪ Current entitlement production up by 1,210 boepd (37%) to 4,444 boepd
▪ 20 of 23 (87%) wells drilled were successful!
Well Funded
▪ US$36.3 MM of Working Capital (US$ 25.2 MM in Cash), No debt
▪ Generating +/-$3.5MM of cash flow/month in H1 2018
▪ Entered into credit facility with EBRD in Morocco for US$10MM
Looking Ahead
▪ Currently running 3 drilling rigs and will decrease to none during Q3 2018
▪ NW Gemsa –
▪ 1-2 workovers (maintenance)
▪ Maintain guidance @ 4,400 boepd
▪ Meseda –
▪ 1 infill well MSD-15 – Meseda
▪ Maintain guidance @ 3,800 boepd
▪ South Disouq
▪ Drilling and testing now completed
▪ Development activity underway – targeting 60 MMscfd initial rate
▪ Sign GSA, Development Lease, JV structure
▪ Acquisition of 170 km2 of 3D seismic, commence Q4 2018
▪ Morocco
▪ Production: 8-10 MMscfd
▪ 3 new customers acquired
▪ Complete 240 km2 of 3D seismic in Gharb Centre
Exit rate of 2018 anticipated +/- 8000 boepd 2X entry rate
I don’t think they borrowed £10m just had the facility to. I did the same waiting game with Ithaca but it came good in the end. Not for the faint hearted and as naked says don’t try and trade on AIM it does not follow logic.