AIM-listed SDX Energy has provided an operational and corporate update regarding its activity in Egypt and Morocco.
Egypt - South Disouq
- Average gross production of 38.5 MMscfe/d (2,720 boe/d net to SDX) for full year 2022.
- The SD-5X well, drilled in Q2 2022, is on production and is exceeding the immediate post-drill volume expectations. It is expected in place volumes will be increased for this well.
- Evaluation of the MA-1X well, drilled in Q2-Q3 2022, has been completed and SDX is moving forward on applying for a development lease for the Mohsen discovery. Updates on the progress of the application will be communicated to the market in due course.
- In 2023, it is anticipated that workover operations will be performed on SD-3X and SD-4X wells, recompleting the wells to shallower reservoirs to maximise recovery, and on IY-2 to restart production from the existing reservoir.
Egypt - West Gharib
- Average gross production of 2,033 boe/d (389 boe/d net to SDX) for full year 2022.
- Since October 2022, the development infill drilling campaign has continued with the FDLN-2 and Rabul-9 having been drilled, completed and brought on-line. This brings the total number of wells drilled in the current campaign to eleven.
- Operations at the Rabul SE-1 exploration well are currently ongoing and the results of this well will be communicated to the market in due course.
- Workover operations on the existing well-stock to maximise recovery from the fields continues.
- The operator is evaluating options to increase recovery and plans to bring water injection on the Rabul field.
Morocco
- Morocco gross production averaged 4.9 MMscf/d for 2022.
- The SAK-1 discovery well, drilled in Q3 2022, was connected to the network and a long term well test via production is being carried out.
- The KSR-20 discovery well, also drilled in Q3 2022, was tied-in to the infrastructure and is currently on production.
- Development activities are ongoing with the testing and tying-in of the 2019 BMK-1 discovery and the connection of our infrastructure to the DOB region.
Corporate Update
- Crowe LLP has been engaged as auditor to the Company. The appointment of Crowe will be subject to approval by shareholders at the next Annual General Meeting of the Company.
- 2022 Year-end results are expected to be published near the end of April 2023.
- SDX focussed on delivering new vision focused on operational and technical excellence, disciplined growth, profitability, and cash flow generation through organic and inorganic opportunities.
- Daan Hanssen, the Interim CFO, has tendered his resignation in order to pursue other interests and will be leaving the Company at the end of May 2023.
Jay Bhattacherjee, Executive Chairman of SDX, commented:
'Since my appointment to SDX, we have made solid operational progress, particularly in Egypt despite the current volatile currency situation in country. We are pushing forward to create a sustainable and repeatable strategy to be a leading player in the energy sector and I am confident that through a disciplined approach, we will have the opportunities to deliver future growth as we implement changes to the business for the benefit of our shareholders.
'The Board would like to thank Daan for his support and dedication and we wish him all the best in his future endeavours.'
Source: SDX Energy
