All monetary values are expressed in
Our strong performance in 2020 means that we finished the year debt-free with c.
South Disouq,
Following the success of the SD-12X exploration well (100% W.I.) in Q2'20, being a commercial discovery in the Kafr el Sheikh ('KES') formation, the Company achieved first gas from the well on
Management estimates that SD-12X has approximately 24 bcf of recoverable resources and can produce at a rate of up to 10-12 MMscf/d. At present, the well is producing at approximately 5-7 MMscf/d and will continue to be monitored to determine its optimum production rate. SDX has a 100% working interest in the production from this well.
Trading and operations update twelve months to
Production
Average entitlement production for the year of c.6,400 boe/d, an increase of 58% from FY 2019 and exceeding 2020 guidance of 6,000-6,250 boe/d.
Moroccan customers back to their
Production from all core assets either exceeded or was at the top end of guidance.
Cash and liquidity
Cash and liquidity remain strong with cash of c.
The Company has agreed a new five-year,
Together with cash generated from operations, the Company is fully funded for all of its planned activities in 2021.
2021 Drilling and prospectivity: Nine wells to be drilled in 2021
Two wells in South Disouq (55% W.I.)
Following the success of SD-12X at South Disouq and upon further review of the 3D seismic, management has high-graded c.233bcf of mean unrisked recoverable volumes, which are close to our existing infrastructure, located in horizons that are either productive in South Disouq or in adjacent blocks, and which are now viewed as ready-to-drill prospects.
During Q2 and Q3'21 the Hanut prospect, which Company estimates has an unrisked mean recoverable volumes of 139bcf with a 33% chance of success, will be drilled, together with
The net drilling costs to the Company of these two wells, reflecting the dry hole cost of Hanut only, is estimated at
Three wells in West Gharib (50% W.I.)
The Company plans to drill a minimum of three development wells in the concession during 2021 with the campaign expected to commence in Q2/Q3'21.
The three wells are targeting approximately gross 1 million barrels of recoverable resources and each of these wells is expected to produce gross 300-400bbl/d.
The net cost of the campaign to the Company, including tie in, is expected to be c.
Four wells in
During the year, the Company will drill four 'close to infrastructure' appraisal/development wells, two of which will be deepened to target the newly discovered Top Nappe play. The LMS-2 discovery will also be tested in 2021.
The campaign which will commence in early Q2'21 and complete late Q3/early Q4'21 will target approximately gross 2 bcf of recoverable resources, excluding the volumes in any potential Top Nappe prospects, which are still being assessed.
Including tie in costs, the campaign is expected to cost the Company c.
About SDX
SDX is an international oil and gas exploration, production and development company, headquartered in
Contact:
Tel: +44 203 219 5640
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 2020 production and capex guidance, liquidity and sources of cash flows in 2020 and 2021,the impact of COVID-19 on customer consumption, future drilling developments and results, and extending the tenor and re-establishing the full availability of the
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
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.
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