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Share price up 75% since we said buy in February

SDX Energy (SDX:AIM) 67p

Gain to date: 75%

Original entry point: 38.23p, 2 February 2017

Our original article on SDX Energy (SDX:AIM) on 2 February cited broker Cantor Fitzgerald as saying investors could double their money within a year on this stock. We’re already three quarters of the way to achieving that goal.

The Egypt and Morocco-focused oil and gas producer is riding high after drill results revealed a gas discovery in the Nile Delta.

An exploration well on the South Disouq project found gas in the first of three target areas and will now progress to test two deeper oil prospects.

SDX ENERGY (LON) - Comparison Line Chart (Rebased to first)

Chief executive Paul Welch is aiming to lift production to 20,000 barrels of oil equivalent per day (boepd) in the medium-term, a process which was supercharged by the acquisition of assets from rival Circle Oil earlier this year. This transaction took output beyond the 4,000 boepd mark.

The company will drill seven new wells on its Lalla Mimouna and Sebou permits in Morocco having secured extensions from the relevant authorities. These wells could be brought on to production rapidly given the proximity to existing infrastructure.

We see further scope for upside as SDX executes on its drilling plans in Morocco and Egypt. Cantor has a 78p price target. (TS)

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