Member Info for maestro1

Legache

They have said new strategy will be informed to mkt imminently that was 4th sept.

Clearly capex will be down in egypt as no new wells were drilled in SD. They may have spent some in WG.

I think production would have declined in egypt as a result, still decent revenue coming from there. Once the official sale price for egyptian asset is released this will surge. Imho

"The buyer is a large multinational operator, with existing Egyptian interests; "

There are many large operators, the purchase price is loose change for any large operator. I cant see them pulling out.

Well i expect production to slightly reduce in egypt and capex would likely significantly decreased.

Directors will finally show us how the books are in the interims which will be out within 10 working days.

Legache

You are correct the rns does say that the deal may not go through but this is standard for all rns's when disposal or takeout is mentioned nomads and directors protecting themselves.

"The buyer is "large multinational operator" with interest in egypt. Remember company stated they received multiple offers so its wanted.

You mention it is a HOT agreement and so is the upfront gas payment deal in morocco. Management has not given guidance for production this year, this to me suggest they are certain they will dispose egypt asset as no new wells have been drilled this year. Even 15-20mmcfd in egypt will be profitable not to mention brent prices $90 and we have c.300bopd in west gharib. Money is being made. The asset will be beneficial for someone who already has assets in egypt as they can divert their gas to this processing facility.

If they concentrate on morocco, the chinese company has stated they are happy to pay large sums upfront for gas. This can be used to maintain current gas production and the money received from egypt diaposal could be used to target larger reservoirs or other assets.

One way or another egypt will get disposed and the interims will show there is money in egypt asset. Within 2 weeks it will be clear.

Exactly, i think the mkt has missed a beat here but also sdx have not given us production guidance for 2023 nor have they guven us a clue how the books look. Hopefully in the next 2 weeks we will know and i see a rerate coming.

Also the chinese automotive company currently negotiating larger upfront payment for gas supply in 2024, things getting better.

They can buy further assets or target larger exploration targets with the proceeds of egypt funds and use upfront payments to maintain gas production.

Both prd and char are years from production.

Littlened

Interesting your take on valuation of egypt asset. Sdx sold 33% of there share of SD for $5.5m. They have $18m in receivables and around 340bopd from west garib.

I think $20m is possible.

But then the two accountants last year was trying to sell whole company for $20m so i dont know.

"While our Egyptian assets continue to produce, at present Egypt is a challenging operating environment for energy companies with sharp devaluation in the value of the currency, which has impacted the dollar value of the cash we hold there, and severe limitations on our ability to transfer funds out of the country due to capital controls. These are both outside our control. Historically our producing Egyptian assets have funded the Company's growth initiatives and we are having to find other solutions, and minimising the risk associated with this has been a key focus in recent months..."

This was from year end results. Egypt asset has funded company growth, the cash will not vanish as both West Gharib and South Disouq are still producing. Money will be in bank. No new wells were drilled in SD.

With the receivables and production sdx may even get $20m for the asset. We cant ignore $18m in receivables and the infrastructure. The large company will likely divert some of their gas to the gas processing facility. I recall PW saying they will expand facility to over 150mmcfd. So its not small facility

Exactly, no production guidance this year.

25mmcfd in egypt and 4mmcfd in morocco is not bad. Im assuming this range for 2023.

Legache

He is indeed. :)

Anyway back to sdx, the sp fell from 8p fue to senior employee emailing large sharehilders that they were not paying local tax. Sdx refuted this and sacked him. Sp hasnt recovered, sdx are cash generative, they cant take dollars out of egypt and it appears they havent drilled this year. So they must have some $ stored and plenty of receivables.

H1 figures should be interesting.

For god sake bce is valued more than sdx

"More good work from Jay and Daniel, shareholders will be happy with the pace of change and how SDX is shaping up for the future, I like what I see…" malcy

Malcys blog is down.

Yes interims have to be released by 30th sept.

Me personally i think the fall is overdone. The infrastructure in morocco and egypt is worth so much more than 8m mkt cap.

Its interesting about DMA who have given us a adv for q4 gas. Porfolio of $1 TRILLION. What the hell!!

Once egypt is disposed they can start again an mkt cap of 25m is expected. Imho

"About DMA

-- DMA is a 100% subsidiary of Citic Dicastal - world leader in automobile part manufacturing and the 50(th) largest auto supplier in the world.

-- Citic Dicastal is a subsidiary of Citic Group - a Chinese holding company with a corporate portfolio approaching $1 trillion."

What if egypt doesnt get sold?

Why are sdx not showing us current production figures for both egypt and morocco?

This can end up bad.

Those chinese will be eyeing up that gas pipe for sure.

Are sdx maintaining production in egypt?

Ginoir

Have you not read the rns they drew down further 500k from aleph financing.

Clearly they are not generating much in morocco and nothings coming out of egypt.

What are sdx doing over leveraging themselves?

Why not wait for egypt disposal?

Legache

You flipped within a day, read your post of 11th and then todays.. :-)

Egypt is just a burden now im convinced production is fast declining there and nothing done to increase it.

I think they will get £10m for egypt asset and then sdx can be classed as a new company.

Why are you giving him attention why don't you just filter and ignore.

That's what I've done. Don't mind hearing both sides of argument but he is taking the mick.

Thanks.. olderwiser..

Olderwiser

How can they get $350m in financing? When they only valued at just over 200m.

In current era the interest rates would be staggering, id prefer they get partner.

So panr doesnt want a partner then?