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SDX Energy - Capital Network: Prime Positioned for Acquisition Growth

SDX Energy (SDX.LON) is an oil and gas exploration and production company with assets in Morocco and Egypt. Born out of the merger between Canadian companies Sea Dragon Energy and Madison PetroGas in late 2015, SDX Energy (SDX.LON) was listed on the AIM market in London in May 2016. A solid production base, positive free-cash flow generation and debt-free balance sheet, provide a strong valuation support and put the company in a privileged position to carry out accretive acquisitions of distressed Egyptian assets, such as that of Circle Oil in early 2017. An attractive exploration portfolio provides additional high impact value optionality. The SD-1X exploration well in South Disouq already discovered gas in the shallower Abu Madi objective and is expected to reach a potentially oil-bearing deeper objective imminently. We reckon that only part of our estimated current value of South Disouq is priced in the current share price, leaving at least 35p (+57%) of potential risked upside.

Executive summary

Finally, we believe that SDX Energy (SDX.LON) also benefits from an experienced management team with CEO Paul Welch (ex-Shell, Pioneer, Chariot and Sea Dragon Energy) and CFO Mark Reid (ex-BNP-Paribas, Aurelian and Chariot), and a special mention for Ahmed Moazz, a former Vice-Chairman of EGPC and current Head of SDX Energy’s Egyptian office who is a significant asset when negotiating with Egyptian authorities.

Quick facts: SDX Energy Inc

Price: 16.355 GBX

AIM:SDX
Market: AIM
Market Cap: £33.59 m
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What's in the report?

Financial results and forecasts
Growth drivers
Management
Market conditions
Milestones & inflection points

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SDX Energy sets timeline for TSX delisting and provides update on South Disouq

SDX Energy (CVE:SDX-LON:SDX) President and CEO Paul Welch joined Proactive Investors Steve Darling on Skype to update the timing of their delisting from the Toronto Stock Exchange and solely list on the AIM market in London. Welch also providing Proactive with an update on their South...

on 04/08/2019

8 min read