SDX Energy Sees 85-89% Growth in 9M Output
London-based SDX Energy’s average production during the nine months to September 30 (9M 2020) was between 6,488-6,598 barrels of oil equivalent/day, marking an increase of 85-89% year on year and exceeding its guidance of 6,000-6,250 boe/d, it said on October 5.
"We have continued to perform strongly in the second half of 2020 despite challenging global conditions. Production is ahead of guidance; we have a healthy cash and liquidity position; and we now plan to accelerate an exciting and potentially transformational drilling campaign in South Disouq into Q2/Q3 2021,” SDX CEO Mark Reid said.
Reid added that as a result of the recent LMS-2 well in Morocco, and further work interpreting existing 3D seismic data, the company is very encouraged by a new prospective horizon it has identified, which it believes is present throughout its acreage.
“Gas consumption from our Moroccan customers is now back to around 90% of pre-Covid-19 restriction levels and we go into the final quarter of 2020 with momentum, exciting and new prospectivity and strong cash generation," he said.
SDX said capital expenditure continued on track with its guidance and the majority of planned capex for 2020 has already been spent. Its 9M capex stood at $21.9mn as against full year guidance of $26.2mn.
In Egypt, SDX has a working interest in three producing assets: a 55% operated interest in the South Disouq gas field in the Nile Delta, a 50% non-operated interest in the West Gharib concession, which is located onshore in the Eastern Desert adjacent to the Gulf of Suez, and a 12.75% non-operated interest in the South Ramadan concession offshore Gulf of Suez. In Morocco, SDX has a 75% working interest in five development concessions, all situated in the Gharb basin.