TIDMSDX
RNS Number : 7234H
SDX Energy PLC
08 April 2022
8 April 2022
SDX ENERGY PLC ("SDX", the "Company" or the "Group")
SPUDDING OF MSD-20 WELL AT WEST GHARIB CONCESSION EGYPT
SDX Energy Plc (AIM: SDX), the MENA-focused energy company, is
pleased to announce the spudding of the MSD-20 infill development
well on the Meseda field. This well is the third in a fully funded
13-well development drilling campaign on the Meseda and Rabul oil
fields in the West Gharib concession in the Egyptian Eastern
Desert. The campaign is aimed at growing production to c.3,500 -
4,000bbl/d by early 2023.
The MSD-20 infill development well on the Meseda Field (SDX: 50%
working interest) spud on 5 April 2022 and is targeting the Asl
Formation reservoir at approximately 3,180ft TVDSS. It is estimated
that the well will take around six weeks to drill, complete and
tie-in to the existing infrastructure. MSD-20, with an expected
cost to drill and tie in of US$0.9-US$1.0 million (gross), is
anticipated to come on-line and produce at around 300bbl/d (gross),
which would immediately contribute to Group cashflow and result in
a payback period of five to six months at current oil prices. The
Company expects to update the market on its result in mid-May.
The first two wells in the campaign, MSD-21 and MSD-25, have
been tied-in and are contributing to production.
Mark Reid, CEO of SDX, commented:
"I am pleased that we have spud MSD-20, the third well in the
campaign, so quickly after bringing MSD-21 and MSD-25 onto
production, which is testament to the efficiency of the operations
team in country and bodes well for the rest of the campaign. West
Gharib is a very high margin asset in our portfolio with a Netback
of US$37/bbl at US$71/bbl Brent in FY2021. Given this, it is our
intention to execute this 13-well campaign as quickly as possible
to significantly boost production and cashflow from these fields.
In line with this aim, a second rig has been contracted and is
currently on location at the next well, MSD-24, which should be
operating soon. I look forward to updating the market further as
the campaign progresses."
About SDX
SDX is an international oil and gas exploration, production, and
development company, headquartered in London, United Kingdom, with
a principal focus on MENA. In Egypt, SDX has a working interest in
two producing assets: a 36.9% operated interest in the South Disouq
and Ibn Yunus gas fields and a 67.0% operated interest in the Ibn
Yunus North gas field in the Nile Delta and a 50% non-operated
interest in the West Gharib concession, which is located onshore in
the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX
has a 75% working interest in four development/production
concessions, all situated in the Gharb Basin. The producing assets
in Morocco are characterised by attractive gas prices and
exceptionally low operating costs. SDX has a strong weighting of
fixed price gas assets in its portfolio with low operating costs
and attractive margins throughout, providing resilience in a low
commodity price environment. SDX's portfolio also includes high
impact exploration opportunities in both Egypt and Morocco.
For further information, please see the Company's website at
www.sdxenergygroup.com or the Company's filed documents at
www.sedar.com .
Competent Persons Statement
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, the technical information contained in the
announcement has been reviewed and approved by Dr Rob Cook, VP
Subsurface of SDX. Dr. Cook has 30 years of oil and gas industry
experience and is the qualified person as defined in the London
Stock Exchange's Guidance Note for Mining and Oil and Gas
companies. Dr. Cook holds a BSc in Geochemistry and a PhD in
Sedimentology from the University of Reading, UK. He is a Chartered
Geologist with the Geological Society of London (Geol Soc) and a
Certified Professional Geologist (CPG-11983) with the American
Institute of Professional Geologists (AIPG).
For further information:
SDX Energy Plc
Mark Reid
Chief Executive Officer
Tel: +44 203 219 5640
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)
Callum Stewart
Jason Grossman
Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Camarco (PR)
Billy Clegg
Owen Roberts
Violet Wilson
Tel: +44 (0) 203 757 4980
Glossary
"bbl/d" Barrels per day
"TVDSS" True vertical depth sub-sea
----------------------------
Forward-looking information
Certain statements contained in this press release may
constitute "forward-looking information" as such term is used in
applicable Canadian securities laws. Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future
events or are not statements of historical fact should be viewed as
forward-looking information. In particular, statements regarding:
the future production and cashflows from the West Gharib drilling
campaign; the Company's future drilling activities, costs and
results; and management's intention to provide further updates to
the market should be regarded as forward-looking information.
The forward-looking information contained in this document is
based on certain assumptions, and although management considers
these assumptions to be reasonable based on information currently
available to them, undue reliance should not be placed on the
forward-looking information because SDX can give no assurances that
they may prove to be correct. This includes, but is not limited to,
assumptions related to, among other things, commodity prices and
interest and foreign exchange rates; planned synergies, capital
efficiencies and cost - savings; applicable tax laws; future
production rates; receipt of necessary permits; the sufficiency of
budgeted capital expenditures in carrying out planned activities,
and the availability and cost of labour and services.
All timing given in this announcement, unless stated otherwise,
is indicative, and while the Company endeavours to provide accurate
timing to the market, it cautions that, due to the nature of its
operations and reliance on third parties, this is subject to
change, often at little or no notice. If there is a delay or change
to any of the timings indicated in this announcement, the Company
shall update the market without delay.
Forward-looking information is subject to certain risks and
uncertainties (both general and specific) that could cause actual
events or outcomes to differ materially from those anticipated or
implied by such forward - looking statements. Such risks and other
factors include, but are not limited to, political, social, and
other risks inherent in daily operations for the Company, risks
associated with the industries in which the Company operates, such
as: operational risks; delays or changes in plans with respect to
growth projects or capital expenditures; costs and expenses;
health, safety and environmental risks; commodity price, interest
rate and exchange rate fluctuations; environmental risks;
competition; permitting risks; the ability to access sufficient
capital from internal and external sources; and changes in
legislation, including but not limited to tax laws and
environmental regulations. Readers are cautioned that the foregoing
list of risk factors is not exhaustive and are advised to refer to
the Principal Risks & Uncertainties section of SDX's Annual
Report for the year ended 31 December 2021, which can be found on
SDX's SEDAR profile at www.sedar.com , for a description of
additional risks and uncertainties associated with SDX's
business.
The forward-looking information contained in this press release
is as of the date hereof and SDX does not undertake any obligation
to update publicly or to revise any of the included forward --
looking information, except as required by applicable law. The
forward -- looking information contained herein is expressly
qualified by this cautionary statement.
Non-IFRS Measures
This news release contains the term "Netback", which is not a
recognized measure under IFRS and may not be comparable to similar
measures presented by other issuers. The Company uses this measure
to help evaluate its performance.
Netback is a non-IFRS measure that represents sales net of all
operating expenses and government royalties. Management believes
that Netback is a useful supplemental measure to analyze operating
performance and provide an indication of the results generated by
the Company's principal business activities prior to the
consideration of other income and expenses. Management considers
Netback an important measure as it demonstrates the Company's
profitability relative to current commodity prices. Netback may not
be comparable to similar measures used by other companies.
Oil and Gas Advisory
Certain disclosures in this news release constitute "anticipated
results" for the purposes of National Instrument 51-101 - Standards
of Disclosure for Oil and Gas Activities ("NI 51-101") of the
Canadian Securities Administrators because the disclosure in
question may, in the opinion of a reasonable person, indicate the
potential value or quantities of resources in respect of the
Company's resources or a portion of its resources. Without
limitation, the anticipated results disclosed in this news release
include estimates of volume, flow rate, production rates, porosity,
and pay thickness attributable to the resources of the Company.
Such estimates have been prepared by Company management and have
not been prepared or reviewed by an independent qualified reserves
evaluator or auditor. Anticipated results are subject to certain
risks and uncertainties, including those described above and
various geological, technical, operational, engineering,
commercial, and technical risks. In addition, the geotechnical
analysis and engineering to be conducted in respect of such
resources is not complete. Such risks and uncertainties may cause
the anticipated results disclosed herein to be inaccurate. Actual
results may
vary, perhaps materially.
This RNS does not include inside information.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DRLZZGGDGNRGZZZ
(END) Dow Jones Newswires
April 08, 2022 02:01 ET (06:01 GMT)
Sdx Energy (LSE:SDX)
Historical Stock Chart
From Sep 2024 to Oct 2024
Sdx Energy (LSE:SDX)
Historical Stock Chart
From Oct 2023 to Oct 2024