TIDMSDX
RNS Number : 0382T
SDX Energy PLC
12 November 2019
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.
12(th) November 2019
SDX ENERGY PLC
("SDX" or the "Company")
COMMENCEMENT OF PRODUCTION AT SOUTH DISOUQ CONCESSION IN
EGYPT
SDX Energy Plc (AIM: SDX), the MENA-focused oil and gas company,
is pleased to announce the commencement of production from its
operated South Disouq concession (SDX: 55% working interest) in
Egypt.
Gas has been flowing through the South Disouq Central Processing
Facility ("CPF") since 7(th) November 2019. Each of the four
discovery wells have been hooked up to the CPF and tested during
this period and have produced at their expected rates of between 8
MMscf/d and 15 MMscf/d.
Over the last three days, the CPF has been operating as
expected, achieving an average gross production rate of 23 MMscf/d
of gas and 120 bbls/d of condensate, equivalent to approximately 24
MMscfe/d. These initial flow rates are in line with the Company's
expectations and testing will continue over the coming weeks,
during which time the Company will gradually ramp up production
with a view to achieving its targeted plateau gross production rate
of 50 MMscfe/d during Q1 2020.
All gas production will be sold to the Egyptian national gas
company, EGAS, at a fixed price of US$2.85/Mcf, with the Government
of Egypt's entitlement share of gross production equating to
approximately 51%.
Mark Reid, CEO of SDX, commented:
"The Company is pleased to announce the commencement of
production at our South Disouq concession in Egypt. We would like
to express our gratitude to EGAS and the Egyptian State for their
continued support and to our main contractors, Petrojet and Expro,
for their work in helping us achieve this important milestone. In
addition, we are particularly grateful to Roger Wibrew and Amir
Ezzat from SDX's Facilities team and to Mohamed Farid, SDX's
Country Manager in Egypt, who have been integral in delivering this
outcome for the Company.
The wells will continue to be produced and tested and we will
gradually ramp up production with a view to achieving our target
production plateau rate of 50 MMscfe/d during Q1 2020. South
Disouq's production, which is coming on stream in line with our
previous guidance, will result in a material increase to Company's
cashflows going forward. We look forward to providing the market
with further updates in due course."
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
three producing assets. In the South Disouq gas field in the Nile
Delta, the Company is operator and has a 55% working interest. In
the Eastern Desert, adjacent to the Gulf of Suez, the Company has
two non-operated oil interests; 50% in North West Gemsa and 50% in
Meseda. In Morocco, SDX has a 75% working interest in the Sebou
concession, situated in the Gharb Basin. These producing gas assets
in Morocco are characterised by exceptionally low operating costs
and fixed price gas contracts making them particularly resilient in
a low oil 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.sdxenergy.com or the Company's filed documents at
www.sedar.com.
For further information:
SDX Energy Plc
Mark Reid
Chief Executive Officer
Tel: +44 203 219 5640
Stifel Nicolaus Europe Limited (Nominated Adviser and Joint Broker)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Cantor Fitzgerald Europe (Joint Broker)
David Porter
Tel: +44 207 7894 7000
GMP FirstEnergy (Joint Broker)
Jonathan Wright
Tel: +44 207 448 0200
Celicourt (PR)
Mark Antelme/Jimmy Lea/Ollie Mills
Tel: +44 208 434 2754
Glossary
"bbls/d" Barrels per day
"Mcf" Million cubic feet
--------------------------------
"MMscf/d" Millions of standard cubic feet
per day
--------------------------------
"MMscfe/d" Millions of standard cubic feet
equivalent per day
--------------------------------
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 Company's intention to continue testing flow rates, increase
production to a plateau rate at South Disouq and the associated
expected increase in cash flows, 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
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
SDX's Management's Discussion & Analysis for the three and six
months ended 30 June 2019, 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, including its
exploration, development and production activities.
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 have 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 the 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
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.
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.
END
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