SDX ENERGY INC SDRYF

RE: RE: SDX value revisited for sake of correctnes

[CLYSMIC]

RockLobster1

I did not realise that the remarks you made in one of your previous posts was a challenge and required a reply from me. I did not mean to offend you.

To avoid making the same mistake, I will reply to your subsequent post in response to "concerning SDX value revisited..." 

It is unfortunate that you find my "posts probably very misleading", considering that I go to great length to elaborate and substantiate the source of data used in my calculations. Your off-hand remark(s) provides no added value. Perhaps you should make the effort to read the company's Financial Statements (can be found on Sedar), go through the number crunching exercise yourself and then you will be in good stead to critique others' efforts.

When a company starts with at least $32.7 million dollars (IPO in July '08) and some 7 months later is down to $5.5 million with nothing to show for it, then you want to ask certain key questions - no matter who is at the helm.  When a company has no cashflow and zilch in booked reserves, you can only value them based on what remaining cash they have and any saleable assets on their books. ( By the way, according to latest Financial Statement, SDX will not drill any more wells in EWA block; could someone tell me what else is SDX actively involved in or will be involved in the forseeable future, except for the mooted purchase of the 1000 bpd field, that could provide value to the company?    

With regards to my recent post concerning " production only valuation", I actually have revenue less cost equals net revenue. You conveniently omitted the magic word "net". Call it what you will - profit, cashflow, etc. - it is crystal clear that the corresponding amount represents what SDX gets to keep from 1 year operation with production at 1000 bpd. Also, I did not come up with any magic number; the derivation is absolutely consise and rigorous. I once again encourage you to go to SDX's website and look up slide #16 of the file "Winter 09 Presentation" and then go through the steps of my calculations - really there is no magic here!

I welcome any constructive criticism from you, and any one else on this board for that matter, but I don't appreciate emotive language and inuendos. Let's try to keep our frustrations away from this board.

Good Luck