Member Info for shakeypremis

Report is good reading. Highlights just how little difference the oil price makes to SDX any more.

About time these guys pulled their finger out lol

No acquisition. They are going to talk about accelerated South Disouq development plan. Stop getting your hopes up only to have them dashed.

Normal behaviour. Actual spread will be smaller but still ridiculous.

There's no indication of any of that in the RNS. It says this;

"The call will provide an update on operations and guidance while also providing a question and answer session for investors."

So they are going to talk about an update on operations (the fast-track exploration at South Disouq) and (production) guidance. I would love for an excellent acquisition to be announced but that is not even hinted at in the RNS today.

Obviously they could announce before the call to then discuss in the call but I am not even sure that is possible because once you have news you have to release it. You can't sit on it I don't think. Anyway, SDX aren't going to announce an acquisition.

They've been doing these calls since Mark Reid took over the CEO role. I don't think there is necessarily going to be any announcement before the call. Hopefully I am wrong though.

It is a combination of factors. Fact is, the stock is undervalued, not going bankrupt and they will increase the NPV. I am prepared to wait.

They should definitely be investing more of their own money I will agree with that. However, incentive plans are the way the industry works and there's no getting away from that. They have delivered exploration success and a very nice increase in NAV/NPV and I am sure they will do the same again with the next round of drilling. It isn't really management's fault the market doesn't recognise this. Furthermore, just take a look around at all other oil and gas stocks. Even ones that are still making money like SDX have been absolutely trashed. Sentiment will eventually change and I view this as a golden opportunity (not that I am going to buy any more SDX shares as I have enough) to acquire great oil and gas companies on the cheap.

Also, don't bother trying to contact the company, they won't respond. Another gripe of mine.

I agree Tigris, I would not want to see an acquisition done with equity at the current share price.

The large oil majors divesting of some of their oil/gas assets to invest in renewable energy may provide a company like SDX some nice opportunities. The lack of oil exploration and infill drilling caused by the lockdowns may well result in an increase in the price of oil despite what the herd might tell you as we aren't transitioning off oil any time soon and it's going to be required in order to make the transition. Price may well tank again first though. That's when SDX needs to be positioned to acquire something nice.

South Disouq has lots of further potential, murmurings in the presentation that if Hanut comes in then the production profile may possibly be increased (>50mmcf/d).

https://wp-sdxenergy-2020.s3.eu-west-2.amazonaws.com/media/2020/10/07151205/SDX-05.10.2020.pdf

Pinch of salt of course as SDX pay these guys for reports like this and other things.

October presentation.

https://wp-sdxenergy-2020.s3.eu-west-2.amazonaws.com/media/2020/10/04195100/SDX-Corporate-Presentation-October-2020.pdf

Supposedly an analyst report from Auctus advisors will be on the SDX web page but I can't see it yet.

https://twitter.com/sdxenergy/status/1314474889185820675

I should have added SDX are adding resources more quickly than they are producing them so they aren't just using the dollars from cash-flow to replace the produced reserves and get nowhere. It's very positive for the future.

Yes they need to increase production. But a significantly larger reserve/resource base will give options.

Small_Holding, I know it's annoying that the share price isn't higher but those dollars haven't been wasted. They have provided a return on investment in terms of increased NPV/NAV etc. The market is failing to reflect what this company has in reserves and de-risked resources. SDX don't dilute us and what's more have been exceptionally successful (in terms of success percentage) with the drill bit. I don't doubt they will add to resources significantly with the upcoming campaigns.

It's like a producing gold miner delineating further economic resources (ounces) within/close to their current deposit and mine/process plant. It's really good news and increases the overall NPV of the project and the market takes it in to account. The market isn't doing that here and is giving us a really good opportunity.

Not expecting any uptick from this. Will probably be used as a mini-liquidity event for people to exit lol

Chrisdp86, while it is frustrating to see no after-tax profits generated and therefore nothing to distribute to shareholders, they are not the only way to generate shareholder value (increased share price). Adding de-risked and recoverable reserves above those required to replace those used in production is another way. If a good portion of these new South Disouq prospects come in (especially this new Hanut prospect) then SDX will have a LOT of reserves and an assured future production profile and might even be able to think about increasing production levels. This will be further amplified by nearl 100% if their partner elects not to take part and SDX go ahead and drilling success is achieved.

Darient

6,000 boes/day. BOEs! That's oil equivalent in energy equivalent terms only, not value. SDX receive significantly less than the brent price for their South Disouq BOEs which form the majority of their production.

No way it will be anything like $25m at year end. Even without this accelerated south disouq development it wouldn't be close to that.