The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
"The Board remains confident that it is on track for the Egyptian sale as per the Company's earlier guidance and further announcements will be made once definitive legal documentation has been signed to effect the sale."
My guess.
At the end of june sdx has $6.7m cash in egypt.
They had $18m receivables in egypt.
Last year they sold 1/3 of their 55% interest for $5.5m. So remaining will be worth around $11m but they will get less.
They own 50% WI in West Gharib. Thats worth at least $5m.
So do the maths, 50% of the total ther is $18m. But i think they should get $15m..
Lets seen..
Remember this
"It is envisaged that the Disposal, if completed, would constitute a fundamental change of business pursuant to AIM Rule 15 - the consideration, as currently calculated in the Heads of Terms, will significantly exceed the market cap Consideration Test threshold. The Disposal would therefore also require the consent of SDX shareholders being given in a general meeting. Upon signing a sale and purchase agreement, the Company will issue a further announcement and publish a circular containing details of the Disposal and convene a general meeting."
I think the disposal is near, looking between £10m-£12m for the disposal. Sdx will likely let the buyer keep the cash in egypt and receivables. Finally we can get closure from egypt.
I can assure you once it lands we will get alot of daytraders. We may even touch 10p on the day..
I tell you what will be nice, if the egyptian sale is announced. Shortly after we get the offtake deal sorted with citic.
"Additional HoT for a larger prepayment transaction to be agreed and planned to be drawn down by early 2024".
This agreement will be close now. One would assume.
"...definitive legal documentation"
Im assuming documents would have been sent out and now the legals are going through em.
The strategy rns could only have been issued now if the deal would go through. Would look like idiots if it didnt.
Very interested to what they get, granted egypt is not the best place to invest so will be discount how much?
"Financing Strategy
The successful execution of the Company's Corporate strategy in the short and medium-term is contingent on the effective divestment of SDX's Egyptian assets and executing on the management's funding strategy. The Board remains confident that it is on track for the Egyptian sale as per the Company's earlier guidance and further announcements will be made once definitive legal documentation has been signed to effect the sale." Rns today
Hopefully $15m. Imho on target to complete by end of year.
Well clearly the chinese need gas, they now have 3 factories in kenitra. They helped with upfront payments in september for q4 gas.
I think a bigger offtake will be signed very soon.
Once egypt asset is sold, can see it 10p a share then maube start moving up once wells start to get drilled. Interesting 6 months.
Still maintain they should get £12m, with that they can bring 6 wells into production easy. But i think citic will contribute to wells.
East bagger within a month..
Imho
Now why would they be interested in little sdx? :)
I think these gas facilities are the reason why some are interested in sdx. The gas processing unit can take upto 60mmcfd, im sure this could be increased. Sdx gross production is only around 30mmcfd.
So whoever buys its can put their gas through the facilities.
https://egyptoil-gas.com/news/petro-disouq-to-increase-natural-gas-supply-to-national-grid/
Its quite clear the buyer will get discounted sale but sdx has to get out. Just too small to do anything..
34adsaddsa
"The Company owns a 50% equity interest in Brentford Oil Tools LLC (“Brentford”), an oilfield services business incorporated in Egypt, over which it exercises joint control."
When was this bought and how have you valued it at $3.5m?
Reserves may have come down but SD still have decent exploration targets. With the prospective buyer already having interest in egypt i wont be surprised if they use the infrastructure for their own reserves.
Of course we wont get all the receivables, but $15m for everything looks excellent deal for the buyer.
In morocco, Gould has said the gas offtaker will pay a larger upfront payment for the gas this will leave more cash for other projects.
I think the new management will do ok.