REG - SDX Energy PLC - OPERATIONAL AND CORPORATE UPDATE

SDX EnergyAnnouncement

01/03/2023 07:01

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RNS Number : 4105R  SDX Energy PLC  01 March 2023

 

01 March 2023

SDX ENERGY PLC ("SDX", the "Company" or the "Group")

 

OPERATIONAL AND CORPORATE UPDATE

 

 SDX Energy Plc (AIM: SDX) provides the following operational and corporate
update:

 

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 ("Crowe") 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."

 

 

Standard

 

Estimates of reserves and resources have been prepared in accordance with the
June 2018 Society of Petroleum Engineers ("SPE") Petroleum Resources
Management System ("PRMS") as the standard for classification and reporting
with an effective date of 31 December 2021 and in accordance with National
Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI
51-101") of the Canadian Securities Administrators.

 

Competent Persons Statement

 

In accordance with the guidelines of the AIM Market of the London Stock
Exchange, the technical information contained in the announcement has been
reviewed and approved by Dr Rob Cook, VP Subsurface of SDX. Dr. Cook has 30
years of oil and gas industry experience and is the qualified person as
defined in the London Stock Exchange's Guidance Note for Mining and Oil and
Gas companies. Dr. Cook holds a BSc in Geochemistry and a PhD in Sedimentology
from the University of Reading, UK. He is a Chartered Geologist with the
Geological Society of London (Geol Soc) and a Certified Professional Geologist
(CPG-11983) with the American Institute of Professional Geologists (AIPG).

 

For further information:

 

 SDX Energy Plc

 Jay Bhattacherjee

 Interim Executive Chairman

 Tel: +44 (0) 203 219 5640

 Shore Capital (Nominated Adviser and Broker)

 Toby Gibbs/Iain Sexton

 Tel: +44 (0) 207 408 4090

 Camarco (PR)

 Billy Clegg/Owen Roberts/Violet Wilson

 Tel: +44 (0) 203 757 4980

Glossary

 

 "MMscf/d"   Million standard cubic feet per day
 "MMscfe/d"  Million standard cubic feet equivalent per day
 "boe/d"     Barrels of oil equivalent per day

 

About SDX

For further information, please see the Company's website at
www.sdxenergygroup.com (http://www.sdxenergygroup.com) or the Company's filed
documents at www.sedar.com (http://www.sedar.com) .

 

Forward-looking information

 

Certain statements contained in this press release may constitute
"forward-looking information" as such term is used in applicable Canadian
securities laws. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or are not statements of historical fact should
be viewed as forward-looking information. In particular, statements regarding
future drilling developments and results in the Company's Moroccan
concessions, and the time in which the Company intends to update the market on
its future results should be regarded as forward-looking information.

 

The forward-looking information contained in this document is based on certain
assumptions, and although management considers these assumptions to be
reasonable based on information currently available to them, undue reliance
should not be placed on the forward-looking information because SDX can give
no assurances that they may prove to be correct. This includes, but is not
limited to, assumptions related to, among other things, commodity prices and
interest and foreign exchange rates; planned synergies, capital efficiencies
and cost-savings; applicable tax laws; future production rates; receipt of
necessary permits; the sufficiency of budgeted capital expenditures in
carrying out planned activities, and the availability and cost of labour and
services.

 

All timing given in this announcement, unless stated otherwise, is indicative,
and while the Company endeavours to provide accurate timing to the market, it
cautions that, due to the nature of its operations and reliance on third
parties, this is subject to change, often at little or no notice. If there is
a delay or change to any of the timings indicated in this announcement, the
Company shall update the market without delay.

 

Forward-looking information is subject to certain risks and uncertainties
(both general and specific) that could cause actual events or outcomes to
differ materially from those anticipated or implied by such forward-looking
statements. Such risks and other factors include, but are not limited to,
political, social, and other risks inherent in daily operations for the
Company, risks associated with the industries in which the Company operates,
such as: operational risks; delays or changes in plans with respect to growth
projects or capital expenditures; costs and expenses; health, safety and
environmental risks; commodity price, interest rate and exchange rate
fluctuations; environmental risks; competition; permitting risks; the ability
to access sufficient capital from internal and external sources; and changes
in legislation, including but not limited to tax laws and environmental
regulations. Readers are cautioned that the foregoing list of risk factors is
not exhaustive and are advised to refer to the Principal Risks &
Uncertainties section of SDX's Annual Report for the year ended 31 December
2021, which can be found on SDX's SEDAR profile at www.sedar.com
(http://www.sedar.com) , for a description of additional risks and
uncertainties associated with SDX's business.

 

The forward-looking information contained in this press release is as of the
date hereof and SDX does not undertake any obligation to update publicly or to
revise any of the included forward‐looking information, except as required
by applicable law. The forward‐looking information contained herein is
expressly qualified by this cautionary statement.

 

 

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