Member Info for shakeypremis

I heard on Twitter that a hedge fund might be looking to take a position in SDX. Not really sure why given SDX's poor performance, perhaps they feel they can fund it and direct down a better path?

Perhaps said hedge fund is looking to buy Waha's stake or similar?

Bit of a culty comment don't you think? Am I wrong though? Do they not spend all operating cash flow on CAPEX while simultaneously depleting reserves?

I don't post here often any more and will post even less in future. Still interested to see how things pan out here as I was invested for years.

Should have said 'spend all their OPERATING cash flow'. They have no free cash flow because they spend all operating cash flow on CAPEX.

I should add that I have sold all my stock here a month or so ago. Finally had enough and don't see any indication that fortunes will turn around here. Management are full of sh*t, what happened to those Moroccan prospects? That's the second time over the years they've said they are doing something there and yet nothing. Morocco and South Disouq appear to be in decline, South Disouq terminally so. Meseda will keep the company ticking over for a while, paying Reid and Box their salaries for a few more years but it will not turn things around here and likely won't stop the share price going down either. Buy back (if they even do it) is a complete waste of money for a company in terminal decline.

They spend all their free cash flow while at the same time not replacing but depleting reserves. This can only go one way until that changes and there is currently no sign of that changing. I guess that's the way to simply sum up this sorry state of affairs.

From latest results, SDX's share of 2p reserves are down from 11mmboe to 7mmboe. Some of that will be due to them selling 33% of South Disouq. The rest is because they have been unable to replace produced reserves despite spending the entirety of operating cash flow for several years. It's fairly simple really why the share price keeps going down.

Falling reserves. Falling production. No free cash flow. Why would anyone want to buy exactly?

Buy back is a completely waste of money for a company like this with it's track record. That money used to pump up the share price will just be wasted if the above continues. A dividend or spending some of it on an acquisition would be better.

Maybe when the company generates free cash flow or increases NPV

Yes, this is 'undervalued' (maybe) but the problem is will the underlying value of SDX's reserves be smaller or larger in a years' time? Given the current trend the likelihood is that reserves will continue to decline and of course SDX has just sold 33% of those remaining and future reserves in SD for US$5.5m (in future contributions to CAPEX and OPEX).

doej@bojopartyplc.com

lol

Spam the crap out of them guys, but be civil and factual so they feel compelled to respond. They deserve it and should do something for the US$1m they are earning between them as they run the company in to the ground.

One guy on the board has quite a few shares in SDX, surely he must care what happens here??? I am sure he has an email address in the same format....

what am I talking about, it would be;

premiss@domainname.com

That is just not working;

lastname+firstname-initial

shakeyp@domainname.com

Hope that makes sense.

For some reason the below message didn't come out properly. Format is;

@domainname.com

Format is;

@sdxenergy.com

For example if my name was shakey premis my email address would be;

shakeyp@sdxenergy.com

They simply don't care. I have Box's and Reid's email and from the format can probably guess some of the board's too. Reid never replies. Box has stopped responding, doesn't like the tough questions and it's clear why with the trajectory of this company. The board might respond if we could guess their email addresses.

They've all been wrong so far...

Management are making those target prices unachievable. For instance, there was supposed to be record free cash flow generation this year according to Auctus but now there won't be because they've sold 33% of SD (for CAPEX and OPEX contributions not actual cash) and they've stopped supplying a customer in Morocco. How can you go from that to free cash flow of maybe US$3m and have your future predictions (including this one) taken with any credibility?

Difference between this and Sirius is that they had a DEPOSIT. It wasn't reducing in size. These guys have very little gas reserves left because they've been producing them and not replacing them and burning all the cash from production while doing it.

I just think market just thinks this is going to keep going in the same direction. Reducing production, reducing reserves, reducing cash etc. Yes they have the pipeline in Morocco and the CPF etc in Egypt but what is that really worth if there is no gas to flow through it? Meseda is the only asset right now that looks like it will increase reserves and production. Everything else is in decline and reliant on exploration success on tiny targets just to maintain the current status quo. If these guys don't hit on this drilling campaign...

Can Auctus predict what this useless management team will do? They have DOWNGRADED their price target from 27p or something? You and others were saying the same thing before they downgraded.

Yes, I am stupid for holding this thing so long when I should have sold. You are stupid because you keep drinking the koolaid.

He doesn't mention the Meseda drills though. They will keep this company alive whereas it looks like they are on their last legs in Morocco and South Disouq as they are fast running out of reserves.

Buyback simply doesn't make any sense. They need that cash. Author also says the sale proceeds from 33% of SD aren't actually in cash, they are instead of contributions to CAPEX and OPEX. So they technically aren't using the proceeds for a buyback if that is true.

Exploration success must occur in Morocco and SD this year.

I can't say I really disagree with his view. This has been a disaster.