AIM-listed SDX Energy, the MENA-focused oil and gas company, has provided an update on the South Disouq SD-12X well achieving first gas, its unaudited operating results, cash and liquidity position for the twelve months ended 31 December 2020 and its planned drilling campaigns for 2021.
Mark Reid, CEO of SDX, 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.'
Source: SDX Energy