SDX Enjoys Earnings Bump on Egyptian Field Launch
North African-focused SDX Energy saw earnings and revenues surge in the first nine months of the year, thanks to the launch of its flagship South Disouq gas field in Egypt and stable gas prices, it said on November 19.
South Disouq came on stream in November last year and delivered a gross 48.6mn ft3/day of gas and 467 barrels/d of condensate in the nine-month period. Overall production at SDX climbed 90% to 6,646 barrels of oil equivalent/d in the period, and the company's full-year guidance is 6,000-6,250 boe/d.
The company's revenues rose to $33.8mn from $23.7mn a year earlier, while Ebitdax grew to $23.9mn from $15.1mn. Net cash from operations increased to $14.7mn from $7.7mn. SDX secured an average price of $10.62/'000 ft3 for its gas in Morocco, up from $10.32 a year before, along with $2.85/'000 ft3 for gas from the South Disouq field.
SDX drilled two wells at South Disouq, with the second resulting in a 24bn-ft3 gas discovery. It plans to launch production at the well in the first quarter of 2021, with a rate of 10-12mn ft3/d anticipated. Pending approval from authorities, it wants to bring forward its next drilling campaign to the second or third quarter of 2021, from the first half of 2022, targeting the 139bn-ft3 Hanut prospect.