SDX Energy Plc (LON:SDX) told investors that the South Disouq field development continues on schedule and on budget.
Today, it specifically flagged the completion of one of three key project milestones with the project’s central processing facility and compressor clearing factory acceptance tests successfully.
The new equipment is now being shipped to Egypt and is due on site by mid-August, maintaining the necessary schedule for ‘first gas’ during the fourth quarter.
SDX is also examining the potential for further drilling in the vicinity of South Disouq, with present work focused on the interpretation of existing 3D seismic data.
In Morocco, meanwhile, the company is advancing plans for the anticipated 12-well drilling campaign, due to start in the fourth quarter.
This Moroccan drill programme is aimed at 15bn cubic feet of prospective gas resources.
"SDX continues to focus on the successful delivery of its key operational targets at the South Disouq development in Egypt and the upcoming Morocco drilling campaign,” said Mark Reid, SDX chief financial officer and interim chief executive.
“We are pleased to report that good progress has been made on these initiatives and both remain on schedule and on budget.”
Monday’s project update also included latest production statistics, which confirmed volumes in line with expectations – gross rates measured 4,300 barrels per day at the Meseda and Rabul fields, while NW Gemsa and the Morocco have produced at 3,900 barrels oil equivalent and 6mln cubic feet of gas per day respectively.
The company noted that at the end of June it had around US$11mln of cash, along with US$10mln of undrawn credit facilities.
“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,” Reid added.