Member Info for shakeypremis

Having said that, production costs per mcf will be higher at this lower production rate. 40c/mcf?

Even at current rates only (6.7mmscf/d) we are looking at around US$6m/year net entitlement revenue after production costs (20c/mcf), not including anything for condensate sales. There will also be cost recovery which will increase revenue.

Hopefully NW Gemsa can stay online a little longer if oil goes up a bit.

BBN, I am not trying to get in to an argument I just want everything to be concise and accurate. This is what you said;

"At what is stated in today's RNS as being, a circa 25mmscf/d net interest, Edison are reporting a pre-tax net entitlement income of circa $16m, post opex, capex, bonuses and royalties."

Current gross production is ~24mmscfe/d. The government take 51% of gross and then SDX's partner IPR take a further 45%. That comes to 6.7mmscf/d currently.

Regarding NW Gemsa, just refer to their latest presentation on their website. Think it's in one of the latest RNS's too.

It's not 25mmscf/d net to SDX at the moment. It's ~24mmscfe/d gross (including condensates - although condensates are worth more than gas). Entitlement production is currently therefore around 6.7mmscfe/d.

Also simply adding SDX's entitlement share of SD's full production (once ramped up) to current figures is misleading. NW Gemsa is due to become uneconomic next year and that will reduce SDX's profitability and production substantially, although I expect SD to cover that loss as the barrels produced from NW Gemsa are producing a smaller and smaller netback as time goes by due to water cut etc.

Anyone want to sell one share for 23p to close it? lol

"It will ramp up to expected gross production plateau of 59 MMscf/d during 2020."

59mmscf/d? Higher than what SDX have stated.

Lord knows who is doing the selling. Some traders possibly. I very much doubt it's the large and larger holders as the same trading has been going on for as long as I can remember and they've all sat on their hands or even increased their stakes.

SDX's entitlement share (after government take and partner take) of production from South Disouq has been well known by any one who knows anything about SDX.

Yep, it's gapped up, so we'll almost certainly see it back down at 23p again in the coming weeks/months. Hopefully sooner rather than later.

Yep, they just didn't bother to announce it lol. Classic SDX.

"We are very pleased to appoint Mark to the role of CEO on a permanent basis. Mark has successfully delivered a number of key milestones since taking over as Interim CEO, including; achieving first gas at South Disouq, Egypt, and the commencement of the Company's drilling campaign in Morocco last month. Mark has the full support of the Board and we remain very positive about the Company's growth trajectory."

Littletrader, yes there will be a reason why, but all I am telling you is that it trades like this all the time and most of the time there is no news released.

It trades like this all the time so I wouldn't read in to that.

That or they bundle the news with Q3 results.

The timeframe (including contingency) is fast approaching. Are SDX going to miss yet another deadline? Given previous performance, my money is sadly on yes.

http://uk.advfn.com/stock-market/london/sound-energy-SOU/share-news/Sound-Energy-PLC-Agreement/81077717

That is further backed up by the large holders (chiefly Ingalls and Snyder) buying more shares here in the previous months.

You are right it is small, but valuable. Do my calculations below go some way to show why drilling for the resource is justified? With a larger resource in a single area, as in the north, bottling the gas might become viable. The stuff sells for US$18/mcf I believe and there is a large market for it in Morocco.

Go invest elsewhere then.I don't think you understand the business model in Morocco.

4.5BCF equates to 4,500,000mcf (4.5 million mcf). Each mcf is worth approximately $US10 to SDX after OPEX of ~US$0.75. So 4.5 million mcf is worth about $US45m to SDX if it's all sold. Yes, it's not a very large number and that's why proving up another 15bcf (11.25bcf WI) would be quite useful to them. Would the company be worth what it is after they sell 4.5BCF over approximately two years and get about US$40m net from it and then have another ~10BCF to sell?

Also in Morocco there is no tax to pay either unless your well produces for more than 10 years (which none of SDX's will).

All BOEs are not created equally. How much are 750,000 BOE's worth? at $60 oil and no opex and no tax which is not going to be the case anywhere you're looking at $US45m. So SDX's Moroccan BOEs are worth a lot more than other BOEs.

As of a 2018 independent CPR report, SDX had working interest 2P reserves in Morocco of 4.5bcf. So yes, 15bcf of resource would be significant if achieved.