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Without the go ahead of the egyptian disposal they couldnt have issued this strategy.
Lets see, the disposal is very soon..
Spending money to enable gas imports to Morocco from Spain? So they don't believe PRD is going to be producing oodles of gas n Morocco any time soon.
A disappointing reaction but the money from Egypt is the key to everything
Where's the presentation? I can't find it on the website.
Looks like the sale new is soon too.
Sdx owned pipeline capacity is 25mmcfd, so looks great they will get more gas from spain.
Good update, although would be nice to put some more meat on the bones soon...
Friday the volume was over 5m, highest since the announcement of the HOT.
I see a rally coming, we may get decent price for egypt asset.
I've got to say, I would like to see the share price move up before the announcement. It's been at 4p for a month.
Now why would they be interested in little sdx? :)
I think these gas facilities are the reason why some are interested in sdx. The gas processing unit can take upto 60mmcfd, im sure this could be increased. Sdx gross production is only around 30mmcfd.
So whoever buys its can put their gas through the facilities.
https://egyptoil-gas.com/news/petro-disouq-to-increase-natural-gas-supply-to-national-grid/
Its quite clear the buyer will get discounted sale but sdx has to get out. Just too small to do anything..
My guess would be BP with whom we danced in Squelch ‘s time
Me think we will know this coming week, just a guess.
Name the large international buyer.
We will all know soon enough !
Perhaps the values need to be halved? I don't know enough about accounting.
They've owned Brentford for yonks. Look at page 56.
https://wp-sdxenergy-2020.s3.eu-west-2.amazonaws.com/media/2023/04/SDX-Energy_2022_ANNUAL-REPORT.pdf
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"The Company owns a 50% equity interest in Brentford Oil Tools LLC (“Brentford”), an oilfield services business incorporated in Egypt, over which it exercises joint control."
When was this bought and how have you valued it at $3.5m?
Reserves may have come down but SD still have decent exploration targets. With the prospective buyer already having interest in egypt i wont be surprised if they use the infrastructure for their own reserves.
Of course we wont get all the receivables, but $15m for everything looks excellent deal for the buyer.
In morocco, Gould has said the gas offtaker will pay a larger upfront payment for the gas this will leave more cash for other projects.
I think the new management will do ok.
Had a little dig. Liabilities in Egypt are actually quite low. No decommissioning liability at all for West Gharib and $1.7M for SD. The payables are overwhelmingly related to Morocco.
SD valuation and perceived difficulty of getting the receivables are a bigger worry.
A few things which people don't seem to have mentioned:
1. The Company owns a 50% equity interest in Brentford Oil Tools LLC (“Brentford”), an oilfield services business incorporated in Egypt, over which it exercises joint control. I think this stake is worth about $3.5M. If that's sold as part of the deal it'll mean more cash than you're currently calculating.
2. SD is probably worth less than when they sold their previous stake because the reserves will have reduced due to production.
3. The company surely has significant liabilities in Egypt. Whether these liabilities are retained or assumed by the purchaser will have a big impact on the amount of cash received.
The cash position will determine where it goes in the short term, but in the longer term they need a credible plan to do something which actually produces FCF otherwise in few years all that cash will have disappeared in G&A and capex.
I think sdx will totally leave egypt. Leave nothing behind.
We have to remember the sp collapsed from over 8p when company announced they were having currency issues in egypt and as a result were finding it difficult to cover working capital for morocco.
Once this burden with egypt is sorted which i believe is very soon i see us moving higher. Once we find out the sale figure sdx sp will rerate. Im expecting £10m-£12M for the disposal.
With sdx keeping Moroccan asset, 10p a share will be fair valuation short term.
I think we will hear something next week. :fingerscrossed
Well, that would be very nice. 12 million quid.
Lets see how the deal is structured. They might retain a slice on a non operated basis?
Trade and receivables is $18m..
I think at least $15m will be offered for egypt asset.
Sdx sold 1/3 of their 55% working interest in SD for $5.5m in 2022.
So 2/3 of SD will be valued at $11m
They have 50% WI in West Gharib lets say $5m
They have $6.5m cash stuck in Egypt
Then they have receivable in egypt too $10m
So obviously there are issues in egypt so getting $15m for all that is a real possibility.. Thoughts?
Agreed, I cannot undo my trades but I can learn from them.
Get over it Legache was years ago,you can’t undo your purchases