Given the total apathy shown by SDX with regard to the low share price and the lack of effort being put into promoting the company, probably the best scenario from a retail investor’s point of view is that SDX becomes a takeover target.
The following article was written on 3rd June 2019 and it suggested just that
As the author points out that given the low valuation SDX could be seen as a takeover target. Coincidentally the share price on the day the article was written was 25.75p, today’s price.
However, since that article was written South Disouq has come online, has ramped up to the plateau rate ahead of schedule, the South Disouq reserves have increased by 35% and the Moroccan reserves have increased by 50%. The more interesting wells are still to be drilled later this year.
If the author thought SDX could be a takeover target in June 2019, it has to be now.
Apache Corporation, mentioned in the article, has a market cap of $11.6 billion.
They have assets in Egypt and if they wanted to expand into Morocco where the fiscal terms are attractive, SDX could be a good fit.
Some would say that Waha or Ingalls would not sell but they bought in around 30p, if an offer was in the high 30’s or 40p they might be tempted to cut and run.
Most CEO’s worry about a low share price because of the risk of takeover, ours doesn’t seem bothered. With a fairly static share price and increasing value of their assets, SDX will just keep getting more attractive to potential suitors.