SDX Energy Plc (LON:SDX) could have the South Disouq gas discovery into production before the end of this year, so says broker Cantor Fitzgerald.
Analyst Sam Wahab, in a note, repeated a ‘buy’ recommendation for SDX on Friday following the group’s updated resource estimates for the project – detailing 47 billion cubic feet (bcf) of contingent resources and 180 bcf or prospective resources.
“In our view, the materiality of these numbers are encouraging from an operational standpoint, indicating considerable exploration upside ahead of a near term boost to production by the end of the year.
“Additional catalysts will also stem from a seven well programme in Morocco slated to commence this quarter.”
The analyst added: “We believe the current share price represents a compelling entry point following the recent sell down.”
Cantor’s ‘buy’ recommendation comes with an upgraded 84p price target (up from 83p) suggesting some 60% upside to the present level.
In Friday’s early deals, SDX shares were up 6.6% changing hands at 50.5p.