logo-loader

SDX Energy Inc

Receive alerts
Market:
AIM
Market Cap:
£45.04 m
Price
22.00 GBX
Change
-2.22%
52 weeks high
44.88
52 weeks low
15.60

SDX is set to deliver on its growth objectives.

SDX has a balanced portfolio, with a mix of production, development and exploration assets. The Company is focused on delivering value for its shareholders through low cost, high margin production in North Africa.

SDX Energy provides a compelling and unique investment opportunity based on its Egyptian and Moroccan balance of high margin production, combined with a fully funded high impact exploration program.

EGYPT

SOUTH DISOUQ

In South Disouq (SDX 55% working interest and operator), the Company completed four wells during the year, three of which were conventional natural gas discoveries in the Abu Madi and Kafr el Sheik horizons.

The company has an operated 55% equity position after it completed a farm-out of the acreage to IPR in February of 2015 for the remaining 45%.

In 2018, the development lease application was approved by the relevant authorities and construction of the pipeline and central facility commenced.

Construction of the South Disouq central processing facility, pipeline and well tie-ins continued in Q1 2019 with first gas expected to be achieved in Q4 2019.

First production from the licence is expected in Q4 2019, with the Company aiming for a gross plateau production rate of c.50 MMscfe/d by Q1 2020 after an initial ramp up phase.

Subject to partner approval, a drilling campaign of up to five exploration wells is planned to commence at South Disouq in 2020. These wells will target the same Abu Madi and Kafr el Sheik prospective horizons that have seen the Company make four discoveries from the five wells drilled to date.

MESEDA

In Meseda (SDX 50% working interest and joint operator), an ESP replacement program was undertaken during the year and four development wells were successfully drilled and completed: Rabul-5, Rabul-4, MSD-16 and MSD-15.

The Meseda field is a 45km2 concession situated onshore in the highly prospective West Gharib block, on the west side of the Gulf of Suez.

SDX Energy holds 50% working interest in the block, with Dublin International Petroleum holding the remaining operated 50% interest.

Two new wells, Rabul-6 and MSD-17, will be drilled in 2019. Targeting gross production guidance of 4,000-4,200 boepd in 2019.

Gross capex in 2019 is expected to be approximately US$8 million (US$4 million net to SDX of which US$1.6 million relates to the two planned wells and US$2.4 million relates to ESP replacements and the facilities upgrade).

NORTH WEST GEMSA

In North West Gemsa (SDX 50% working interest and non-operator), a three-well infill drilling program was undertaken together with a seven-well workover program during 2018. He production rate from these wells was in line with the Company’s guidance.

The NW Gemsa Concession is an 83 km2 onshore concession located approximately 300 km southeast of Cairo in the Eastern Desert adjacent to the Gulf of Suez.

The concession consists of three main oilfields Al Amir SE, Al Ola and Geyad fields producing light 42 degree API Oil.

In December 2009, the Company acquired a 10% participating interest in the concession. In May 2016 it acquired an additional 40% participating interest taking up to its current position of 50%.

Targeting production guidance of 3,000-3,200 boepd in 2019. It has low operating costs of $US 10/bbl, which make it significantly cash generative. As the field is fully developed capex is expected to be minimal going forward.

MOROCCO

The Company’s Moroccan acreage (SDX 75% working interest and operator) consists of five concessions, all of which are located in the Gharb Basin in northern Morocco: Sebou, Lalla Mimouna Nord, Gharb Centre, Lalla Mimouna Sud, and Moulay Bouchta Ouest.

The Company’s Moroccan acreage (SDX 75% working interest and operator) consists of five concessions, all of which are located in the Gharb Basin in northern Morocco:

  • Sebou
  • Lalla Mimouna Nord
  • Gharb Centre
  • Lalla Mimouna Sud
  • Moulay Bouchta Ouest

During 2018, the Company completed a nine-well drilling program, starting in September 2017, which covered six appraisal/development wells in Sebou, one appraisal/development well in Gharb Centre, and two exploration wells in Lalla Mimouna Nord.

Out of the nine wells drilled, seven were successful, including the LNB-1 and LMS-1 exploration wells in Lalla Mimouna Nord, which resulted in a two-year extension being granted to the concession, extending its validity from July 2018 to July 2020 with no additional work commitments.

UK - Head Office
Morocco
Egyot
Calgary - Registered Office

Michael Doyle
Non-Executive Chairman

Mr Doyle is a Professional Geophysicist and a Certified Corporate Director with more than 35 years industry experience. Mr Doyle is a principal of privately held CanPetro International Ltd and its affiliates. He has been a director of Equal Energy Ltd since 1997.

Mr Doyle was previously a principal and Chief Executive Officer of Petrel Robertson Ltd where he was responsible for providing advice and project management to clients throughout the world. Prior to that, he held a variety of exploration positions at Dome Petroleum and Amoco Canada. Mr Doyle holds a Bachelor of Science (Maths and Physics) from University of Victoria.

Mr Doyle was a founding director and Chairman of Madison PetroGas from its inception in 2003.

Mark Reid
Chief Financial Officer and Interim CEO

Mr Reid has over 20 years’ experience in numerous sectors including the Financial Services, Investment Banking and Oil and Gas industries. He has had significant exposure to M&A transactions and the equity and debt capital markets. Most recently, between 2009 and 2015 he was Finance Director at AIM listed Aurelian Oil and Gas PLC and Chariot Oil and Gas Limited. Prior to this, he spent 7 years as an Emerging Markets E&P banker and was Head of Oil and Gas in the London office of BNP Paribas Fortis. He has also spent 7 years with Ernst & Young Corporate Finance advising on M&A, IPO and other fundraising transactions.

Mr Reid has an MBA (Distinction) from Strathclyde University, is a Member of the Institute of Chartered Accountants of Scotland, a Fellow of the Chartered Association of Certified Accountants and a Member of the Chartered Institute for Securities and Investment.

David Mitchell
Director

Mr Mitchell is a successful oil and gas executive with more than 35 years proven track record in the international arena, including with BP and Nexen.

During this time, Mr Mitchell discovered and built projects with his teams in the Middle East, West Africa, Latin America and the North Sea. He has lived and worked in a number of countries including a year with BP Egypt. Mr Mitchell received his BSc Honours, Geology from the University of London and his MPhil Mining Engineering from the University of Nottingham, UK.

Mr Mitchell was appointed CEO of Madison PetroGas on joining in 2008, building the company prior to the merger with Sea Dragon Energy.

Timothy Linacre
Director

Mr Linacre is a Fellow of the Institute of Chartered Accountants in England and Wales and an experienced City practitioner. After qualifying with Deloitte Haskins and Sells he spent 5 years with Hoare Govett before moving to Panmure Gordon in 1992, working at that firm for 20 years including 8 years as CEO. Tim is currently Senior Managing Partner at Instinctif Partners, a leading Business Communications firm.

During his career in the City Tim has advised a range of businesses in a variety of sectors, including oil and gas, from FTSE 100 companies to fast growing listed and private companies.

Michael Raynes
Director

Mr Raynes is the Managing Partner of MEA Energy Advisory UK LLP, an Energy focussed investment advisory partnership, and a Director of MEA Energy Investment Company Limited. MEA Energy Investment Company Limited is a significant shareholder in SDX Energy Inc. Previously Mr Raynes was the Chief Operating Officer of Waha Capital with responsibility for all investing activity including Sales & Trading, Private Equity, Infrastructure, Real Estate and Energy. He brings with him an intricate understanding of investing in the Middle East and North Africa and has established a strong track record of adding value to businesses and generating strong returns for investors.

Prior to Michael’s role at Waha Capital, he was a Senior Investment Banker with Barclays Capital in London.

London – Head Office
38 Welbeck Street
W1G 8DP
London
United Kingdom

+44 (0) 203 219 5640
+44 (0) 203 219 5655

Morocco
Forum 6, Rue Ibrahim Tadili
Bureau n 10 & 11 – 2 eme Etage
Souissi – Rabat
Kingdom of Morocco

+212 537 635 656
+212 537 656 314

Egypt
Road 261, no. 10,
New Maadi,
Cairo
Egypt

+(20) 2 2599 5200
+(20) 2 3536 5765
 

Calgary – Registered Office
Centennial Place, East Tower
1900, 520-3rd Avenue SW
Calgary, AB, T2P 0R3
Canada