SDX Energy PLC - OPERATIONAL AND CORPORATE UPDATE
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY SDX TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
("SDX" or the "Company")
OPERATIONAL AND CORPORATE UPDATE
· Development of South Disouq (SDX 55% working interest and operator) continues on schedule and on budget, with factory acceptance tests for the central processing facility ("CPF") and compressor, the first of three project milestones, now successfully completed.
· Both pieces of equipment are now commencing the process of being shipped to
· Interpretation of the South Disouq 3D seismic continues to refine our understanding of prospectivity in the concession. Upon completion of this interpretation and partner discussions, a decision will be made on future drilling.
· Planning for the 12-well drilling campaign in
· Gross production for six months to
o Meseda and Rabul: 4,300 bbl/d
o NW Gemsa: 3,900 boe/d
· Cash at
· The Board has provided
"SDX continues to focus on the successful delivery of its key operational targets at the South Disouq development in
We are pleased to report that good progress has been made on these initiatives and both remain on schedule and on budget. Once the South Disouq 3D has been interpreted, and after partner discussions, we will assess the potential for a drilling campaign and update the market in due course.
Our cashflow and receivables collections remain strong and I am pleased to report that all of our existing and planned activities are fully funded from current cash, near-term cash flows and the undrawn EBRD facility. I look forward to providing further updates on our activities during the second half of 2019."
· The first of the three key South Disouq project milestones, the CPF and compressor fabrication in
· The 12" export line to the Egyptian national grid is 100% completed and tested, as are two of the four 6" flowlines from the discovery wells to the CPF.
· Preparations for the second key project milestone, the shipping of the CPF skids from
· The third key South Disouq project milestone, first gas, is expected in Q4 2019 in line with previous guidance, subject to successful assembly, testing and commissioning of the CPF.
· Following a ramp up phase, a gross plateau production rate of c.50 MMscfe/d is being targeted in Q1 2020.
· 3D seismic interpretation is ongoing. During H2'19, the Company will review the final results of the 3D interpretation, undertake partner discussions on a potential drilling campaign and complete an assessment of drilling risk and capital allocation. Upon conclusion of these activities, a decision will be made on a 2020 drilling campaign.
· Planning for the 12-well drilling campaign in
· The campaign is expected to commence in Q4 2019 and is targeting sufficient reserves to satisfy existing customers' forecast demand, as well as testing new play-opening areas of prospectivity across the portfolio.
Other Portfolio Assets
· In Meseda (SDX 50% working interest and joint operator), the Company successfully drilled the Rabul-7 development well which was brought on stream at a stabilised rate of 415 bbl/d of oil. A further development well is planned in H2'19 which, if successful, will provide further support to the Company's reiterated guidance of 4,000-4,200 bbl/d gross.
· In North West Gemsa (SDX 50% working interest), the ongoing workover program is supporting the unchanged 2019 gross production guidance of 3,000-3,200 boe/d.
· The Company's H1'19 production and FY19 production guidance is shown below:
Six months ended
NW Gemsa - WI 50%
3,000 - 3,200 boe/d
Meseda - WI 50%
4,000 - 4,200 bbl/d
South Disouq - WI 55%
First gas by Q4'19.
c.50 MMscfe/d plateau by Q1'20
| || |
6.0 - 6.5 MMscf/d 2019 annual average rate
* Reflects stabilised consumption from four out of eight customers. Remaining four customers consumed low volumes of gas in H1'19 and are expected to increase consumption in H2'19
Financial and Corporate
· Cash at
· FY 2019 Capex guidance is unchanged as follows;
o South Disouq
o North West Gemsa
· Continued reduction in Egyptian receivables to
· SDX remains fully funded for all existing and planned activities.
· Corporate reorganisation completed in
SDX is an international oil and gas exploration, production and development company, headquartered in
Competent Persons Statement
In accordance with the guidelines of the AIM Market of the
For further information:
Chief Financial Officer and Interim Chief Executive Officer
Tel: +44 203 219 5640
Tel: +44 (0) 20 7710 7600
Tel: +44 207 7894 7000
GMP FirstEnergy (Joint Broker)
Tel: +44 207 448 0200
Tel: +44 207 520 9260
stock tank barrel
billion cubic feet
"boepd" & "boe/d"
barrels of oil equivalent per day
"bopd" & "bbl/d"
barrels of oil per day
thousands of cubic feet
million standard cubic feet per day
million standard cubic feet equivalent per day
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 Company's plans, the timing of completion of the South Disouq CPF, timing of completion of the export pipelines and well tie-ins, production targets, future drilling, ESP replacement, field facility upgrades, well workovers, and the timing and costs thereof, as well as capital expenditures, operational expenditures, the Company's 2019 outlook, should all 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; the timing of and the Company's ability to obtain regulatory and statutory approvals in connection with the Company's plans and the availability and cost of labor and services.
All timing given in this announcement, unless stated otherwise is indicative and while the Company endeavors 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; 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 reference SDX's Management's Discussion & Analysis for the three months ended
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.
Oil and Gas Advisory
Estimates of reserves been made assuming the development of each property in which the estimate is made will actually occur, without regard to the likely availability to the Company of funding required for development of such reserves.
Certain disclosure in this news release constitute "anticipated results" for the purposes of National Instrument 51-101 - Standards for Oil and Gas Activities 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 management of the Company 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.
The prospective resource estimates disclosed herein have been prepared by an independent qualified reserves evaluator,
There are uncertainties associated with the volume estimates of the prospective resources disclosed herein, due to the level of information available on prospective resources, but ranges are defined based on data from the Company's nearby existing analogous wells. Some of the risk and uncertainties are outlined below:
· Petrophysical parameters of the sand/reservoir;
· Fluid composition, especially heavy end hydrocarbons;
· Accurate estimation of reservoir conditions (pressure and temperature);
· Reservoir drive mechanism;
· Potential well deliverability; and
· The thickness and lateral extent of the reservoir section, currently based on 3D seismic data.
Use of the term "boe" or the term "MMscf" may be misleading, particularly if used in isolation. A "boe" conversion ratio of 6 Mcf: 1 bbl and a "Mcf" conversion ratio of 1bbl: 6 Mcf are based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
This information is provided by RNS, the news service of the
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