23rd Mar 2018 12:47
LONDON (Alliance News) - SDX Energy Inc said on Friday it swung to a total comprehensive income in 2017, through its acquisition of the Egyptian and Morocco businesses of Circle Oil PLC, and netback gains.
The North Africa-focused oil and gas company reported a total comprehensive income of USD28.3 million, swinging from a loss of USD28.0 million the year before. The swing to income was attributed to USD29.6 million gain from the acquisition of Circle Oil businesses, and netback of USD28.9 million, through the high margin of the Circle Oil Moroccan business and a recovery in oil prices over the year.
The net realised average oil price for 2017 was USD46.70 per barrel, up from USD31.51 the year before, and net revenue rose to USD39.2 million, up from USD12.9 million.
Operationally, total sales volumes for the year was 3,237 barrels of oil equivalent per day, up from 1,192 barrels the year before, with North West Gemsa in Egypt in the lead with 1,733 barrels per day.
For the fourth quarter however, SDX saw a total comprehensive loss of USD2.6 million, swinging from USD100,000 in income for the same period in 2016, despite net revenue rising to USD11.0 million from USD5.4 million.
However, total sales volumes for the quarter fell to 3,261 barrels of oil equivalent per day, down from 4,313 barrels the prior year.
"We continued to see strong operational performance throughout the year across our portfolio. In North West Gemsa we are seeing the results of our twelve successful workovers, and in Meseda we successfully drilled two exploration wells in 2017 followed by the successful Rabul-5 appraisal well earlier this month," said President and Chief Executive Officer Paul Welch.
"The remainder of 2018 will see a second appraisal well, Rabul-4, followed by two development wells on the Meseda area of the concession. Our nine well drilling programme in Morocco has seen five discoveries from seven wells drilled to date and we look forward to continuing this drilling success throughout the rest of 2018," Welch added.
Shares in SDX Energy were down 1.5% at 49.50 pence on Friday.
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