Small_Holding
07 Jan 2020
SDX - RNS - South Disouq reserves upgraded 35% to 89 BCFE The reports are worth having a look at sdxenergy.com SDIY-Sept19-Audit_060120_v2.pdf 2.01 MB sdxenergy.com SD_Sept19_Final-Reserves-Letter_060120_PRMS-COGEH_v2.pdf 837.81 KB
Small_Holding
07 Jan 2020
SDX - RNS - South Disouq reserves upgraded 35% to 89 BCFE Good news at last, reserves at South Disouq independently upgraded by 35% to gross 89 BCFE from the previous figure of gross 66 BCFE. Any upgrade in reserves is welcome and this is a good increase. The increased reserves should give the analyst’s an increased share price target. Whether this will give us a lift in the share price, time will tell. Also good to get confirmation that the Salah well will be drilled in February. The best part about this RNS for me is that this news has been released on it’s own as a standalone piece of information. Given how they have been behaving recently they could have added it to the January update, coming later this month. To get maximum impact these positive updates want releasing separately and they have done that this time. Will we see our CEO face the media, I doubt it but you live in hope. The update on the Morocco drilling campaign looks like it is coming with their January update, which if it follows the usual pattern should be around the 28th.
Small_Holding
31 Dec 2019
SDX - 2019 share price performance - DOWN 38% 2019 SDX share price performance: -38% (December 31st 2018 share price 35.5p December 31st 2019 share price 22p) In 2019 we swapped an over optimistic fantasist CEO for a shy reclusive CEO, neither did anything to help the share price. Mark Reid has now held the office of SDX CEO for seven months, in that time Investment media interviews given: NIL Presentations at Investment Conferences/Seminars or Events: NIL With the benefit of hindsight it was a huge mistake for SDX to promote internally. Giving Paul Welch’s sidekick the job meant it was always going to be difficult for Mr Reid to face the press and criticize his best mate. However you dress it up, you only have to look at the 2018 salaries to see that SDX was ostensibly Welch & Reid. Screenshot_2019-12-24 SDX Energy 2016_Q2 - SDX-Energy_2018_AR_Complete pdf.png941x750 85.9 KB The total sum of the other 5 Directors salaries was only $213,568, dwarfed by the two big earners. This is underlined by the share awards granted under the Long Term Incentive Plan, only two Directors benefited, Welch & Reid. An external candidate for CEO would have almost certainly faced the media very quickly to confirm, mistakes have been made, they won’t happen again and I intend to take this company forward. Such a statement would have given the company a fresh start; instead it just appears investors don’t know if anything fundamentally has changed. The total silence from the new CEO just underlines this impression, as one of the big two falls on his sword the other one just changes seats and takes over. With seven months now under his belt and no promotional work at all undertaken, it appears he is trying to complete a year in office without ever undertaking one of his primary duties. On the face of it our cornerstone investors seem content for SDX not to have a public face, perhaps they endorse that strategy. Waha Capital, SDX’s largest shareholder (19.48%) will now be compiling their 2019 annual report. In last years 2018 report their holding in SDX was valued at AED 66.3m. With a 38% fall in the value of their investment in 2019 to around AED 40m, it will be interesting to see what comments they make in the report regarding this investment. It is strange that if they believed this was a sound investment at the prices they paid (around 29p) and they are happy with how this company is being run, then why haven’t they taken advantage of the low share price to add to their holding and average down? Will the SDX share price fare any better in 2020? To be honest it couldn’t do much worse, remember 2019 with South Disouq finally producing gas was supposed to be a transformational year for SDX. Will Mark Reid CEO come out of the SDX bunker? If he doesn’t they should have given his job to a cardboard cut out, it would have done exactly the same on the PR front and cost considerably less.
suicidal_tendencies
16 Dec 2019
SDX - Significant Shareholders Looks like Teviot Partners bought 555k shares in SDX recently too. [link]
suicidal_tendencies
16 Dec 2019
SDX - Significant Shareholders More buying by smart money. Shares coming from PIs who can’t see the wood for the trees or stay the course.
Small_Holding
14 Dec 2019
SDX - Significant Shareholders The biggest increase in their holding since April 2019 is River & Mercantile from 6.45% to 9.2% an increase of 2.75% With 204,723,041 shares in issue that equates to around 5.6m shares
Small_Holding
13 Dec 2019
SDX - Corporate Presentation November 2019 During the current 12 well drilling campaign in Morocco, SDX have chosen not to update the market after each of the wells are completed. As a result we are in the dark as to progress or results. From the latest presentation Screenshot_2019-12-13 PowerPoint Presentation - SDX-Corporate-Presentation-November-2019 pdf.png1193x458 50.8 KB It is always a bit vague from these slides but it appears that they expect to complete this campaign by early February? That seems to be going some to drill 12 wells but if that is anywhere near accurate, they must be close to completing 3 or 4 already.
Small_Holding
12 Dec 2019
SDX - Edison Broker Note Edison SDX Energy - South Disouq delivering ahead of expectations | Edison SDX Energy announced early in November 2019 the commencement of production of natural gas in South Disouq, in Egypt. We expect this achievement to have a material effect on SDX’s cash generation in the coming years. The field has already achieved a... Valuation: Core NAV increase by 2% to 45.7p/share Our core NAV increases by 2%, driven by South Disouq progress in 2019 being ahead of our previous estimates. We also update SDX’s exploration and appraisal target resources for 2020, which, in combination with the core NAV, results in a RENAV of 50.3p/share, 1% higher than our previous valuation. The current share price appears to be heavily discounting SDX sanctioned projects, which correspond to 91% of our RENAV, as well as any future growth potential in Egypt and Morocco. Financials We forecast year-end 2019 net cash of c $5.1m and, as of end September 2019, SDX’s EBRD loan facility of $10m remains undrawn. Updated broker note, surprised that they only expect $5.1m in cash at the year end, I was thinking we would have more than that, time will tell. At least they still think the current share price does not accurately reflect the value here.
Small_Holding
12 Dec 2019
SDX - Where are the CEO interviews? I am referring to both, any appetite to invest here would be welcome. The current investors who continue to hold, be they retail or institutional, are not the issue. It is new investors wherever they come from that create demand for the share and will give us a more realistic valuation
suicidal_tendencies
12 Dec 2019
SDX - Where are the CEO interviews? When you say ‘investors’, are you referring to retail investors? Because this company is majority owned by institutional investors and a few sticky fingered private investors and none of them are selling.
Small_Holding
12 Dec 2019
SDX - Where are the CEO interviews? Potential investors are always told Do Your Own Research (DYOR) I start with the fundamentals, then I would read recent presentations on their website and then I would look at presentations the CEO has made at investor events or to the investment media to form an opinion of the top man. Is the CEO confident, knowledgeable, do they answer difficult questions or avoid them and frankly do I believe them enough to invest in their company. During that process, in my case, I was wrongly convinced by Paul Welch. In February 2019 Paul Welch attended the Egypt Petroleum Show and as far as I can see that was the last presence by SDX at an organised investment event aimed at Retail and Institutional Investors. In March 2019 Paul Welch gave an interview to Malcy on Core Finance and in April 2019 he gave an interview to Proactive Investors. As far as I can see these were the last investment media interviews/presentations given by anyone at SDX. I like most SDX investors would love to see an army of investors all convinced by the SDX story and keen to buy shares. However, this falls down because during their research they will discover the issues with Paul Welch and since taking office as CEO on June 1st 2019 Mark Reid CEO has not given a retail investment media interview nor has he attended and presented at any investment event aimed primarily at Institutional Investors. The result being that potential investors cannot assess the CEO because he is invisible. If anyone can show me a presentation given by Mr Reid I would appreciate it. Investors hoping for a change in fortune for the SDX share price may have a long wait. If I was new to the SDX story I would want to know the new management had learnt from previous mistakes and it would be up to the CEO to convnce me. With an invisible CEO I would not be convinced and I would look elsewhere to invest my money. That is the current situation with SDX, the fundamentals are good, they are spending all their revenue on more exploration, no dividends are expected in the medium term but most importantly they do not have a visible media face to convince investors. Until that changes potential investors will always be put off and look elsewhere for a company management they can trust.
Small_Holding
11 Dec 2019
SDX - Where are the CEO interviews? Directors buying shares is always a welcome sign but it is yet another reason to give an interview. They are putting their money where their mouths are, why not explain to potential investors why they should buy into SDX. All companies need a public face to represent them. SDX do not have a public face since Paul Welch departed. After all this time and news it is clear Mark Reid is not comfortable in front of the camera. If that is the case they should employ a media representative to become the public face of SDX or Mr Reid should grow some.
suicidal_tendencies
11 Dec 2019
SDX - Where are the CEO interviews? If all is well here and things are as they are presented then this really could be a gift horse. Buy more shares I say. The whole oil and gas sector has been battered. I think this will go up if the sector goes up.
suicidal_tendencies
11 Dec 2019
SDX - Where are the CEO interviews? At the least directors are buying shares. I don’t suppose they’re buying them to make a loss on them.
Small_Holding
11 Dec 2019
SDX - Where are the CEO interviews? Sadly another chance to promote SDX’s achievements was missed yesterday. Having failed to promote South Disouq coming online, yesterday was a second chance to laud SDX as they have reached the 50MMscfe/d ahead of schedule. As I have said before a lot of these media interviews can be done over the phone from the comfort of the CEO’s office. I wrote to SDX yestyerday to congratulate them on this achievement, I said I had been critical of the CEO in the past but I gave him credit for reaching the plateau this soon. I also said I was hoping to see a media interview later in the day reminding the market that whatever happens to the oil price SDX would now get about $1m a month net from South Disouq, well it obviously fell on deaf ears. An interview might appear today but don’t hold your breath
