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SDX - Where are the CEO interviews?

lse:sdx

#21

I am all for believing in conspiracies if there is evidence to suggest. I know they are much more prevalent than most people who use the term ‘conspiracy theory’ do (which is the majority of the population).

Here, I don’t know either way. It’s just a set of options. I think one thing we can say here is they are certainly not going out of their way to increase the share price (like other companies do) through interviews/paid research reports/other types of pumping etc. I really don’t believe this is incompetence/lack of knack in the area.

You can’t take their stated strategy at face value. You can’t do that with any statement by anyone, Government, companies, certain billionaires… There is too much going on behind the scenes that we just don’t know about to have much confidence about anything if you’re honest with yourself.


#22

We are in agreement that SDX are not going out of their way to promote the company. In that way they are behaving differently than most investors would expect a listed company to behave.
The reasons why they are doing that are unknown at the present and we can only speculate as to why, silence from the company just makes that worse.

I am sure that the investment media and analysts are well aware of this extended period of silence. They will make their own assumptions as we do.

What I would say is that during an economic downturn when investors are looking for a solid, cash generating business with no debt, you could argue that SDX should have fared a lot better than many other companies that are based on hope and expectation.
In the event we had an awful year and I put that down to a lack of transparency.

The reason I am still invested here are the strong fundamentals of the business and the fact that I am significantly underwater on my investment. If SDX were not generating revenue and had high debts I would have cut my losses and sold.

My belief is that IF the intention is to take the company private, the price we would get is higher than the current share price. I would still lose money but my losses would be lower than they are currently, for that reason I continue to hold.

Having spent hours trying to fathom what is going on here, the only logical conclusion I can come to is they are trying to keep the share price artificially low and the only reason I can see to do that is facilitate taking the company private on the cheap.
That would fully explain the media silence because they wouldn’t care what the media or the boards write because they will be out of it soon enough.

I sincerely hope I am wrong but my views won’t change until someone from SDX gives an interview clarifying what is going on and why.


#23

The chart is telling me not worry too much. The whole oil and gas sector is down and SDX has come down with it. SDX is in a bottoming process at the moment and there will be ups and downs and more buying opportunities.


#24

Yesterday was another good day, a 4% rise with 476,738 shares traded.

It again shows how the share price could rise quickly if we had significant buyers but to put it in perspective, yesterday only 0.23% of the shares in issue were traded.
The buyers yesterday were retail investors and some will be part of the “buy on rumour, sell on news” brigade.

With an update due there is increased appetite for the shares but even if the update is good some will sell, it is just how they operate. I have seen so many companies recently announce good news and the share price falls, it is just an investment strategy that some follow, buy on the rise and sell on the news. If they are making money good luck to them.

A strong update from SDX however should generate increased interest and that should offset any selling.

As things are I am quite happy for the update not to be released for a couple of weeks because the anticipation is generating interest and the management cannot stop investors buying even if they wanted to.


#25

Here’s your interview Small_Holding;

https://www.sharesmagazine.co.uk/video/mark-reid-ceo-sdx-energy-sdx


#26

I think this interview puts to bed the theories regarding tie in to the Mahgreb-Europe pipeline though. At the very end he’s asked a question by an audience member regarding what they would do with success in the North in Morocco. Mark Reid answers by saying “there are couple of options”, which are as follows;

  1. Extend the existing SDX owned pipeline
  2. Build some kind of CNG facility and compress the gas and truck it

No mention of tying in to the ME export line. Of course, that doesn’t mean it is completely off the table or that he’s just not mentioning it for whatever reason.

Also Reid mentions in the video that there is the potential for liquids in the North, not just condensates but also oil.


#27

HALLELUJAH!!

At last we get an investor presentation from SDX and we get to hear the CEO speak.

The presentation was good and I thought he came across very well. He covered the business well and outlined the potential of the continuing exploration campaigns.

I agree with you s/t regarding the wells in North Lalla Mimouna, he says that they will either extend the pipeline or compress gas near site.
I think it will all depend on what they actually find, with the potential for gas, condensates and or oil it could be that decision is revisited.

A shame about the questions, only time for two, the first was good and the second poor. MR had already covered the fact that our customers were on long fixed contracts.

What wasn’t said and wasn’t asked, was if they continue with just the existing business model in Morocco, where are any new customers coming from. They have had those eight customers for a while now but no mention of where any additional customers are coming from. Having the gas to supply those eight customers for years to come is all well and good but surely we want the business to grow.
MR may have ideas in that area but if he has they weren’t mentioned or nobody asked about it.

A very good day though and I hope this is the first of many interviews/presentations that are given. With positive presentations like that and hopefully success with the drill bit we might finally get investors to take interest.

It was good MR mentioned twice that the SDX market cap valuation is only twice their 2020 operational cash flow. Given the fundamentals here that is very cheap.

I appreciate cash flow isn’t profit but when the drilling campaign ends, the capex falls significantly but the income stream remains constant, that is when SDX will have a lot of spare cash that they then have to decide what to do with.


#28

From the shares magazine presentation

Currently producing around 7,000 boe/d of which South Disouq contributes 4,400 boe/d.

2020 cash flow of $30-$32m, made up of

$11 to $12m South Disouq
$5 to $6m West Gharib
$0.5 to $1m North West Gemsa
$15 to $17m Morocco

$31.5m to $36m in total

This shows that losing North West Gemsa is not as big a deal as I thought it was.

5 years of reserves now but Salah could add 2.5 years and Sobhi another 1.5 years

If the Young well is drilled should cost $4 to $5m but they would be looking for a partner that would pay all the drilling costs and in return get a percentage of any discovery or future discoveries.

With so much drilling activity it should be a period of fairly regular news. If SDX have success with the drill bit and market sentiment improves, it could still be a good year for SDX.

Personally I feel a lot happier now the company has again got a public face and spokesperson.


#29

Regardless of the fact NW Gemsa really adds next to no free cash flow, you can bet a headline of SDX losing x thousand barrels of production per year will still induce a drop (albeit possibly short lived) in the share price. If that does occur I will try to trade it.