Why Invest in SDX Energy
SDX Energy provides a compelling and unique investment opportunity based on its Egyptian and Moroccan balance of high margin production, combined with a fully funded high impact exploration program.
The low cost production growth strategy ensures SDX Energy’s business model is underpinned by stable and positive cash flow, even in a low price commodity environment. These stable, high margin operations ensure that SDX Energy will be a significant beneficiary of any future increase in commodity pricing.
The strength of SDX Energy’s financial position, resulting from its strong balance sheet and positive cash flow, is a key differentiator from many small-cap E&P companies in the sector. This stable financial position allows SDX Energy to execute its very active work programme which provides multiple catalysts for shareholders as it drills production, development and exploration wells in the coming years. Furthermore, the Company can also use its balance sheet to consider new opportunities, namely capitalising on distressed asset opportunities in North Africa, as it seeks to execute its growth strategy.
SDX Energy’s Board of Directors possess a wealth of industry experience and technical expertise. With proven track records at some of the biggest names in the industry, the Company’s management team have the required skillset to create value for its shareholders. The Company also benefits through its relationships with both government officials and industry partners, accrued through decades of combined presence in North Africa. Given Egypt’s world class geology and excellent operating environment, it has recently seen billions of US dollars of industry funds invested in the sector and with recent fiscal changes and a stabilised economy, is anticipating more in the coming years. Morocco offers industry leading E&P fiscal terms with significant potential for SDX Energy to capitalise on the highly profitable gas market, where demand significantly exceeds supply. Leveraging SDX Energy’s existing relationships and early mover advantage in Egypt will be a key factor in driving the Company’s growth. Finally, the Board and management’s combined shareholding in the Company ensures they are fully aligned with the shareholders and will be moving forward with one priority in mind, which is creating value for all shareholders.