26th May 2016 13:49
LONDON (Alliance News) - SDX Energy Inc on Thursday said it continues to progress its South Disouq exploration asset in Egypt, and whilst the first three months of 2016 have been "challenging" for the "whole oil industry", its high-margin production enables it to generate positive free cash flow down to USD15 oil.
The company said in the three months to March 31, its average daily oil sales were 1,252 barrels of oil per day and its average daily natural gas and natural gas liquids production was 151 barrels of oil equivalent per day.
SDX Energy said it drilled two development wells in North West Gemsa in Egypt, and commenced 300 kilometers squared of 3D seismic acquisition in South Disouq, Egypt, during the period. Processing and interpretation of this acquisition will follow with a well to be drilled in the first quarter, SDX Energy said.
In 2016, SDX Energy said it will carry out a nine well workover programme at North West Gemsa, as well as initiate an 11 well workover programme plus and infill drilling and waterflood programme at Meseda, also in Egypt.
"The first three months of 2016 has been challenging for the whole oil industry with Brent oil prices falling as low as USD27 per barrel in January. Fortunately for SDX Energy, we have a particularly robust business underpinned by high-margin production that enables us to generate positive free cash flow down to USD15 oil," said President and Chief Executive Paul Welch.
"Having successfully raised new funds, as part of our dual listing on AIM, we are now well placed to carry out an active work program on Meseda that should result in a material increase in our net production. Concurrently, we continue to progress our exciting exploration asset at South Disouq and look forward to completing the ongoing 3D seismic survey ahead of a carried well later this year. Our stable financial position and active work program ensures we are well placed to thrive in a lower for longer oil price environment," Welch added.
Shares in SDX Energy were up 10% at 22.35 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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