Member Info for Southmead

A few nice positive share transactions this morning.

I'd take a little over 30p immediately SD is announced. That would be 50% uplift to today's SP.
Doesn't mean to say that I would sell but it would be a nice platform on which to receive drilling results from Morocco.
Nice thought!!

I think that it is a pretty safe assertion that Timothy Linacre's purchase of 25,000 shares does not necessarily mean that there is no news about to land on the subjects of either South Disouq or the Morroccan drilling programme.
The purchase would need to be prior agreed by the Chairman and Board. It must not be made in a closed period and it must not be made if he has prior knowledge of a price sensitive fact which is unknown to the market.
The SD process and timetable is well known and understood by the market, Mark Reid and his team have made sure of that. Any good news, positive announcement on SD would, I believe, be outside of the normal insider dealing rules and therefore Mr Linacre's tiny share purchase would be okay. News is still imminent.

A short sentence in the presentation summary that may have been overlooked by some,
' No overdue oil and gas sales receivables'
This note refers to Egyptian Government Debtors, which has been a cashflow thorn in the side of SDX for the last two years or longer. It is a significant positive development that those debtors have now been completely eliminated. This FACT testifies to the new positive political and economic fortunes of Egypt. Long may it continue.
Presumably it means that the US$3.0 million for NW Gemsa (2018: US$10.0 million) and US$4.5 million for Block-H Meseda (2018: US$4.8 million) which was highlighted in the Accounts to June 30th 2019, have now been collected. The Presentation quotes June 30th cash balance of $11m but the collection of these overdues should mean a healthy improvement in the bank balance, maybe to over $15M, by my reckoning.

Good Morning
Well, that was a nice week for the share price. A steady upward movement and decent support. Those irritating small sells have disappeared, although what their purpose was baffles me.
I would be interested in your Technical Analysis of the SP chart now Shakey?

SDX Energy Plc (SDX.L) Announced that the MSD-19 development well in the West Gharib Concession in Egypt (SDX 50.0% Working Interest & Joint Operator) has encountered a commercial oil accumulation. The well was drilled to a total depth of 4,665.00 feet and encountered approximately 135.00 feet of net heavy oil pay across the Asl Formation, with an average porosity of 24.0%. The well was completed as a producer, connected to the central processing facilities at Meseda and brought online at an average stabilised rate over five days of approximately 315.00 bbl/d (gross).

Yes Iptuf93, I share your excitement about the drilling programme in Egypt especially, but I keep telling myself not to look beyond SD just yet. The key to the drilling programme in Egypt is the all important cash flow from SD. Once the SD gas and cash are flowing, no doubt our attention will naturally move on to the next challenge.
But just to whet our appetites, I was happy to read that, 'The drilling campaign in South Disouq of up to five exploration wells is planned to commence in 2020. These wells will target the same Abu Madi and Kafr el Sheik prospective horizons that have seen the Company make four discoveries from the five wells drilled to date' 'The interpretation of the recently acquired 170km2 of 3D seismic in the southern section of the concession, is expected to significantly increase reserves inventory'
Great stuff isn't it?

I shouldn't be at all surprised if later on today, another Director follows suit and buys a few shares.
I can imagine the conversation around the board table, lets all buy some but spread it out over the next few days to maximise the impact and get it noticed.
Some news on South Ramadan or the Meseda development well, MSD-19development drill would also help to fill the gap while we wait for the next milestone at SD.

Good Morning
It looks as if Tim Linacre agrees with you SuperRoty, he has bought 45,000 shares to add to his holding.
Maybe other directors will at this low, low price as well.
A big vote of confidence, I'd say.

What I should have added is that, there was absolutely no point in SDX making a capital reduction and transfer to distributable reserves, if there was no intention to pay a dividend. The Revenue Reserve was always positive, albeit about US$23M and no deficit existed. The only limitation to paying dividends now is SDX's cash position which must be strong enough to facilitate the payment. Having said that dividends can be financed via loan if deemed appropriate.

The effect of the share capital reduction was to move US$49M out of Share Capital and into Revenue Reserves.
Dividends can only be paid out of distributable reserves and therefore this move has made it possible to pay out dividends in the future. Currently Revenue Reserves stand at US$70M, some 60% of total capital. Without adding to that figure via future retained earnings, the creation of a distributable pool of reserves has given the Board far more flexibility when it comes to paying dividends. When future retained earnings are added by virtue of South Disouq hopefully, the capital to reserves ratio gets even better and seriously points to the possible payment of dividends. IMO

Yes, Daft63, I noticed the references to dividends as well.
First reference was in relation to the expenditure of $1.1M to affect the redomicile of SDX to UK.
'US$1.1 million of transaction costs covering the re-domicile of the Company from Canada to the UK, the Company's capital reduction to improve our ability to pay dividends, and other business development activities. '.
The second reference was to the Capital Reduction exercise which rebased the SDX share capital to shares of £0.01 each.
'Completed capital reduction exercise in June 2019 to improve the ability to pay dividends in the future when the Company deems it prudent to do so'.
These are pretty clear pointers to an intention to pay dividends at some stage.
However, SDX has never stated that paying a dividend was a part of its Corporate Strategy. The official growth strategy states that SDX will,.....
'As part of this strategy, and in addition to our significant organic growth potential, we continue to assess M&A opportunities that could add value to SDX. The right acquisitions would serve to act as a catalyst to SDX’s production rate, and in turn, free cash flow generation and ultimately support our ambition to be a North Africa-focused E&P of scale.'

You see, no mention of dividends, only of using funds generated to acquire and develop the business in North Africa.
Maybe it is time to update the 'Strategy'

But news is due....remember that Meseda's development well, MSD-19, was spud in early August and a result is due soon.

So, to be absolutely clear, the CPF has landed at Alexandria, cleared customs and is now on the back of a truck heading for South Disouq.
This is an enormous worry off my mind as I imagined all sorts of potential hold ups.
No mention of the compressor though.
Engineers are presumably waiting on site to install the CPF and connect it to the already completed pipe line.
Excellent news, Well done.

I like this bit...'The CPF has cleared customs in Alexandria and is en route to site at South Disouq, thus achieving the second of the three key project milestones. The final milestone of first gas in Q4 2019 remains on track, subject to the successful installation and hook-up of the CPF, which is scheduled to begin later in August, with the Company aiming for a gross plateau production rate of c.50 MMscfe/d by Q1 2020.'
More news soon then :)

What an excellent days trading for SDX, a very pleasant change.
1.3Million shares traded and a rise in Share Price of 16%
It just shows how much interest and volume there is lurking in the background just waiting for some action on this share.
A couple of good positive posts on this Board from Topsharepicks and ResearchAnalyst, some would say ramping but accurate stuff and nothing that we aren't all thinking anyway.
Lets have another day like that and maybe news soon.

It was reported that 'the central processing facility ("CPF") and compressor would be arriving on site at South Disouq in mid-August'. This coming week we can therefore expect news and hopefully Monday morning. Lets hope that its good news and all is well with the SD program. All these share price concerns will quickly fade away in my opinion.

Well done to Christopher Bogart, Chief Executive Officer of Burford, for pursuing the issue. Blatant and illegal share price manipulation frustrates shareholders and company alike. It destroys confidence and undermines proper commercial decision making. I believe that there is evidence of similar manipulation of SDX's SP over the last year or more and it would be a very helpful if this could be investigated and pursued in just such a determined fashion by SDX's management and advisers. All in my humble opinion, of course.

IMO a new CEO is not required at this time. Mark Reid has been given a mandate to get SD done. He has established 'an experienced Executive Committee consisting of the heads of Subsurface & Operations, Facilities and Finance and the Country Managers of Egypt and Morocco'. This process must be allowed to work through uninterrupted and SD delivered. The appointment of a new CEO would be a huge diversion. Maybe Mark Reid deserves the chance to be the new CEO anyway!

It does appear that AXA Framlington Smaller Comps has an investment in SDL, a IT software business. Maybe MS have misposted the info relating to that shareholding?