Member Info for shakeypremis

Just finished on the webinar. I got a couple of questions answered by Mark. Questions and answers are paraphrased. These are the most interesting ones.

Q1. Some of your producing fields in South Disouq are at the margins of the license . Are you interested in possibly obtaining these adjacent licenses?
A1. Yes - actively looking to obtain

Q2. Are you in the financial position to take advantage of any distressed assets that may arise from the current low (and possibly lower still future) oil price?
A2. Yes. Waha strongly want us to grow either organically or inorganically and we are looking very seriously at acquisitions.

Registered. I wonder if ANY institutional investors will turn up. Will be interesting if it's a zoom type call that shows number of attendees. I am not expecting many to turn up if numbers are shown.

Why would they be? Nothing to do with SDX. This may now mean IPR won't be interested in doing much with South Disouq any more. Drilling in South Disouq now becomes more expensive for SDX and greater losses (almost double) if the wells fail, but obviously almost double the reward if successful. I think we have until the end of the week for IPR's decision on whether to participate in the proposed drills.

Actually I think it is 0.77mcf/day gross sales. I have come up with a better equation that makes more sense.

[((Pmcf-Omcf) x Nmcf) x Wi)] x 365 = Nppy

Pmcf (Price per mcf) = US$10.5
Omcf (OPEX per mcf) = US$1
Nmcf (Number of mcf's sold per day gross) = ?
Wi (Working Interest) = 0.75
Nppy (Net profit per year) = US$2,000,000

We can input the values we know and rearrange the equation for Nmcf as follows;

[((10.5 - 1) x Nmcf) x 0.75)] x 365 = 2,000,000

[((10.5 - 1) x Nmcf) x 0.75)] = 2,000,000 / 365

(10.5 - 1) x Nmcf = (2,000,000 / 365) / 0.75

9.5 x Nmcf = (2,000,000 / 365) / 0.75

Nmcf = ((2,000,000 / 365) / 0.75) / 9.5

Nmcf = 769mcf/day gross sales (0.77mmcf/day)

In order to generate approximately US$2m free cash flow in Morocco from their current customer's new autoparts factory I calculate SDX must be looking to sell them roughly 0.6-0.8mmcf/d.

US$2,000,000 / ((10.5 - 1) x 0.75) = ~281,000mcf per year

This is the number of mcf's sold per year at US$10.5/mcf after OPEX of US$1/mcf and after accounting for the Government take of 25% that SDX would need to sell to generate US$2,000,000 of free cashflow net to them.

281,000mcf/year is 770mcf/day (on a 365 operating days per year).

0.77mmcf/day increase in sales net to SDX. Or just over 1mmcf/day gross.

I think lol. Anyone care to check my maths?

Another thing from the call was that if Hanut and Mosen come in successfully and produce to expectation then SDX would net after tax and after CAPEX free cash flow of approximately US$160m over 10 years. I believe that was without partner participation in the wells. Presumably 55% of that figure if IPR join in. Success may also mean they increase production by say 20mmscf/d but that would cost approximately US$10m to upgrade the CPF.

That is fair enough. So it looks like demand in Morocco is fairly fixed and at the moment at least (until perhaps they make some play opening discoveries) they won't be able to increase production and sales by other means. That sort of flies in the face of the previous investor call when I asked them if they were investigating other methods to produce and sell more. While they said they wouldn't look at bottling the gas they were looking at other potential routes to market. So don't really understand what exactly they are planning if anything at all.

From the call today before I had to drop off they are adding more sales by the end of this year once and existing automotive customer of theirs (some Chinese auto parts maker) is finishing a second factory soon and it will add approximately US$2m in free cashflow per annum once finished. This same customer may also add a third factory in 18 months or so. Not confirmed.

After that I had to drop and my recording software didn't record the call. Doh.

I don't think I've seen TD Direct on there either before.

Haven't seen them on the register. They are likely holding shares on behalf of some high net worth. They might not be new but have become large enough to exceed 3%. That is what is most likely.

https://www.sdxenergy.com/investors/significant-shareholders/

Yes they are finding much more gas in Morocco than they can sell. It will take them ages to sell it all. Why are they continuing to drill for it when they can't sell it??? Do they have a plan?

So what are people planning to ask SDX on the call? Would be good to know so we don't all have the same questions so we can really grill them.

Yup. Let's try to keep this stuff off this board though.

Well done. Someone else that sees what it's really all about.

I would be highly suspicious of anything you hear regarding green energy. I would like to see the figures he sights. I highly doubt Morocco gets all is electricity needs from solar. They import gas from Algeria come to think of it. It's got to be more BS from Attenborough like the walruses off the cliff lie. There is a huge agenda (pun intended) with global warming and green energy but let's not go in to that here.

Furthermore, there is huge demand for natural gas in Morocco. There is a huge bottled gas market where it sells for $18/mcf. Sdx just can't sort themselves out to be able to take advantage.

SDX not on the Oil Walrus' bucket list because it isn't wild cat drilling. Doesn't care it is cashflow positive without debt.

First time they've done something like that for a while. Hopefully will be positive.

Nothing interesting. One of my questions in the upcoming investor call will be should you prove up Hanut/the new horizon in Morocco are you going to be able to use these new resources to increase production? I think we know the answer regarding Morocco is going to be no but we need to keep asking them about how they are going to get more sales in Morocco because nothing is happening on that front.

https://www.brrmedia.co.uk/broadcasts/5f883a01c4d0076f2b940b6c/sdx-energy-trading-update

The Moroccan reserves make up the bulk of the valuation of SDX. It is so important that they work out a way to sell more of the stuff. It's an absolute cash-cow if they can come up with something. Looks like they've got plenty of gas and very good chances of finding a lot more.