SDX Energy Plc has provided an update on the Egyptian South Disouq SD-12X well achieving its first gas. It published its unaudited operating results, cash and liquidity position for the twelve (12) months ended 31stDecember 2020 and its planned drilling campaign for 2021.
Cash and liquidity of SDX is $9.6 million (unaudited) as at 31st December 2020 and the EBRD credit facility remaining undrawn with $2.5 million of availability. The Company has agreed a new five-year, US$10 million facility, with EBRD, which is to be available for drawing before the end of the first quarter of 2021 upon satisfaction of standard conditions precedent. The Company is fully funded for all of its planned activities in 2021.
Here are some of the Company’s plans for 2021:
- Drill 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.
- Drill three wells in West Gharib (50% W.I.), Egypt. The Company plans to drill a minimum of three development wells in the concession during 2021 with the campaign expected to commence in the second and third quarter of 2021. 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.
- Drill Four wells in Morocco (75% W.I.). The campaign will commence in the second quarter of 2021 and be completed in late third-quarter of early fourth-quarter of 2021. It will target approximately gross 2 bcf of recoverable resources, excluding the volumes in any potential Top Nappe prospects, which are still being assessed.
The Chief Executive Officer of SDX, Mark Reid, commented: “I am very pleased to be able to announce a strong end to 2020 and a promising start to 2021 with our SD-12X (Sobhi) well, where we have 100% entitlement interest, coming on stream six weeks ahead of schedule. Production from two of our three core assets beat 2020 guidance (being South Disouq and Morocco, where production is now back to pre-Covid close down levels) while our third core asset (West Gharib) came in at the top end of guidance. Furthermore, as a result of our continued focus on capital discipline, I am pleased to report that our 2020 capex spend was approximately US$1million lower than our guidance of US$26million.
Our strong performance in 2020 means that we finished the year debt-free with c.US$9.6million of cash and US$2.5million of undrawn availability from our EBRD facility, which will increase to US$10million in the coming months after the standard conditions precedent in our new facility are satisfied. When viewed in light of a year which was full of operational challenges and volatile commodity prices, I see our robust cash generation as a hallmark of our business and is testament to the commitment of the team at SDX. We have started 2021 in a very positive position with an exciting programme of nine wells to be drilled in the year and I expect us to build on the successes of 2020 by discovering more resource and continuing our resilient cash generation.”
To read the full details of SDX activities in 2020 and the planned activities for 2021 click here.
