Member Info for shakeypremis

European Bank for Reconstruction and Development website

https://www.ebrd.com/work-with-us/projects/psd/52261.html

Now some decent buying is going on at 17.5p, although obviously doesn't move the price.

CAPEX is ~US$25m for 2021. As long as there are no production shut downs there may be a slight cash build but we'll see.

Still no mention of that Moroccan investment we read about.

Excellent, another year of falling cash on the balance sheet. All that exploration (particularly Hanut and the Top Nappe) better come in successfully.

Says it all really. This would move up very quickly if there were any buying interest from PIs.

Yes, they think the same thing about oil. Apart from the fact it is in everything (think plastics), it is use in the manufacturing and supply chains is ubiquitous. Just how do people think you can transition to a 'green' (will it really be green given the massive mining required to get the materials?) economy without an energy source???? That energy source is currently fossil fuels and nuclear.

"...University of Strathclyde and went to work for Ernst & Young. After qualifying as a chartered accountant, he moved in 1998 to the firm’s office in London where he, his wife and son still live.

After seven years with E&Y, Reid moved to BNP Paribas Fortis, where he was an emerging markets E&P banker and head of the firm’s oil and gas section.

He came to SDX after six years in financial roles at Aurelian Oil & Gas and Chariot.

Reid does not come from an oil and gas family but the career arc from the energy portfolio at a top accounting firm to oil and gas financial executive “is a well-trodden path”, he says.

An early riser, he sets his alarm to 4:45 on weekdays to hit the streets of the West London neighbourhood.

“I like to go out for a run in the morning before work, dragging my aged bones around Barnes for half an hour,” he says.

“It’s a bit of ‘me’ time when I can bounce things around in my head before emails start popping in. I’m quite disciplined at making sure that happens Monday through Friday.”

Reid describes himself as “quite passionate” about the environmental, social and governance standards for SDX. In Morocco alone, the company’s gas has replaced enough heavy fuel for power generation to reduce carbon dioxide emissions there by 62,000 tonnes per annum, he says.

Social projects
The company employs locals in both Morocco and Egypt and has invested in infrastructure in communities where it operates, including the restoration of a primary school in an Egyptian village in the South Disouk concession, which SDX operates with a 55% interest.

“By virtue of our locations we are very involved in social projects,” Reid says. “I personally think it’s just the right thing to do. If you’re in a foreign country, and your operations are having an impact on the local populace, even indirectly, you need to give something back.”

SDX has no immediate plans to expand beyond Egypt and Morocco but has an active exploration programme on the cards for 2021 in its existing acreage.

“In Morocco, we’re drilling four wells, and in Egypt we’re drilling five, one of which — Hanut, on the South Disouk block — if successful, will double the size of the company,” Reid says.

“We are cautiously optimistic. It’s in an area where we have drilled seven wells, five of which have been successful. So, it’s not wildcat exploration. It’s the sort of sensible exploration that I like,” he adds."

Luckily I downloaded the article before it decided to ask me to pay for it!

'Running an oil and gas company is a business, not a science project': SDX boss Reid

Mark Reid is not one to promote the popular image of the small-but-scrappy oil and gas player as daring explorer, willing to take big risks for the promise of striking it rich.

That stereotype would be hard to square with today’s industry, where pragmatism and a measure of caution prevail and “where you’re not betting the farm on a single well”, he says.

“I think the days of the market supporting that kind of risk are way behind us.”

Chief executive of SDX Energy since 2019, Reid has a background in accounting and oil and gas banking, and espouses a practical approach that particularly suits North Africa-focused SDX.

“The way to look at running an oil and gas business is, it’s a business. It’s not a science project,” he says.

“I keep very well-informed technical advisors around me, and I run the company like a business.”

Exploration upside
SDX Energy — created by the 2015 merger of Toronto-listed Sea Dragon Energy and privately held Madison PetroGas — operates onshore in Egypt, where it has two production concessions, and Morocco, where it has five development and production concessions.

“The investment proposal we offer people is, we’re not going to be drilling any expensive, offshore, company-ending-event wells,” Reid says.

“What we like to do is have a low-cost, predictable production business with exploration upside.”

SDX’s current production is around 6500 barrels of oil equivalent per day, about 90% of which is gas used by the domestic markets in both countries.

“The business model is to use our cash flow to reinvest in low-risk, high-potential exploration prospects in our portfolio, or else to start thinking about returning capital to shareholders if we don’t have enough projects to re-invest the cash into,” Reid says.

“That’s what the business model is about — it's low-risk, predictable cash flow, and recycling the cash either in projects, or M&A, or returning capital to shareholders.”

Reid, who had been SDX’s chief financial officer since the time of the merger, was named chief executive in May 2019, succeeding Paul Welch, with whom he had worked at Chariot Oil & Gas, another Africa-focused junior.

The position was made permanent in November that year, just months before the coronavirus pandemic would usher in a turbulent year for the oil and gas industry.

Reid says that 2020 was "an extraordinary year for a number of reasons", citing Covid-19 and the low prices for oil and gas that prevailed throughout the year.

SDX remained somewhat “insulated and resilient” in the downturn because some 90% of the company’s revenues are from fixed-price gas contracts, he points out.

“We were able to move forward in 2020 relatively unscathed.”

Reid hails from the town of Motherwell, south-east of Glasgow, where he earned an MBA at the Uni

*full r e t a r d

ESG is only going full ****** in the West. Places like Egypt Morocco will do ESG but no to the detriment of their economies and ability to deliver stable baseload power.

Yes ESG/sustainability will kill the UK but SDX's gas is for Egypt and Morocco and they will keep using it.

The EBRD (an arm of the UN) don't think so and they are driving the whole ESG/climate change/sustainability narrative.

It's not wildcat exploration, but doubling reserves is a huge value catalyst. But no ones cares.

https://www.upstreamonline.com/exploration/running-an-oil-and-gas-company-is-a-business-not-a-science-project-sdx-boss-reid/2-1-945851

Most notable thing is (although nothing new);

“In Morocco, we’re drilling four wells, and in Egypt we’re drilling five, one of which — Hanut, on the South Disouk block — if successful, will double the size of the company.”

“We are cautiously optimistic. It’s in an area where we have drilled seven wells, five of which have been successful. So, it’s not wildcat exploration. It’s the sort of sensible exploration that I like."

I would email the company but I am sure they won't bother responding to me. Because they have never once responded to an email of mine.

Why are they importing it? For domestic consumption or for export via LNG terminals etc?

Nothing - including good news - is ever anything but bad news for SDX's share price. That is all you need to know.

SDX won't benefit at all from rising gas prices worldwide on their South Disouq production. It's fixed price. Whether they can benefit on Moroccan gas sales is not known. I would think not by much. For instance the price they receive doesn't seem to go down with the gas price does it. Although I am remembering something about a floor in pricing.

US$10-US$12/mcf. I wouldn't call that low. While bottled does sell for US$18/mcf (or at least did - I don't know what the current prices are). Perhaps you were thinking of South Disouq (in Egypt) fixed price gas which they sell to the government at US$2.85/mcf which is very low. Condensates sold separately on top.