GREY:SDRYF - Post by User
Comment by
tigris72pooon Dec 28, 2018 11:15pm
169 Views
Post# 29167268
RE:RE:From the SDX Twitter post
RE:RE:From the SDX Twitter postSDX has no debt and no hedges. Period. They are tied to brent oil prices on theit NWG and Meseda oil production. The Morocco gas is sold on fixed 5 yr contracts ar prices between $10 and 12 /MCF. With no royalty , no tax and operating costs of about $1/MCF, the after tax netbacks are about $60/BOE which has to be the most profitable production anywhere.
The SD gas in Egypt will be sold at $2.85/MCF with some liquids, So pre-tax netbacks will be laess than $2/MCF ($12/BOE). The good thing about that business is the upside volume potential once the infrastructure is in place. Incremental discoveries will be much more economic and will come on line faster. But it all depends on when SD goes on line.