The big one for me, they still had US$11m in cash at the year end. This is very good as it should be as low as the cash falls, the big expenditure of South Disouq CPF purchase and installation has now been paid.
SDX should be generating more than enough to pay the capex and have some left over to build their cash reserves/war chest.
Edison, in their note on the 12th December 2019 estimated that SDX would finish the year 31st December 2019 with only US$5.1m, in the event they had more than double that.
No real bad news, North West Gemsa is still on borrowed time but who knows they might still get a good few months out of it.
Seven wells drilled, five successes, adding 2 to 2.5 bcf or 50% to the existing reserves. This will satisfy the existing customer’s demands for the next three years.
Anything found in the next five wells could be sold elsewhere, a big result in Lalla Mimouna North could go to the Maghreb-Europe Gas Pipeline.
South Disouq drilling mid/late February and great to hear only 8 kilometre and 5 kilometre pipelines required to link to the CPF, if successful.
In short, a very good update and we haven’t even touched the exciting wells yet.
This update should give a lift to the share price but if it doesn’t there can only be one reason why not, silence from the company.
I hope we see an interview from our CEO later in the day, there is no reason not to.
This update contains a lot of good information that he could talk to, it is a perfect opportunity to break the silence