TIDMSDX
RNS Number : 9156Y
SDX Energy PLC
07 January 2020
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
SDX TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"),
THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
7 January 2020
SDX ENERGY PLC
("SDX" or the "Company")
RESERVES UPGRADED AT SOUTH DISOUQ BY 35% TO GROSS 89 BCFE FROM
GROSS 66 BCFE
SDX Energy Plc (AIM: SDX), the MENA-focused oil and gas company,
is pleased to announce that upon completion of an independent
technical and economic audit of the reserves at its operated South
Disouq concession (SDX: 55% working interest), Gaffney, Cline &
Associates (GCA) has reported that gross proved plus probable
reserves ("2P reserves"), as at 30 September 2019, are 86 BCF of
natural gas and 0.6 MMbbl of condensate. This is equivalent to
gross 89 BCFE and represents an increase of 35% from gross 66 BCFE
as included in the Company's reserves audit covering all of its
concessions as at 31 December 2018. Both reports are available on
the Company's website.
The increase in South Disouq 2P reserves is as a result of the
2019 reprocessed 3D seismic data providing a better understanding
of the structure and distribution of the reservoir around the
production wells.
Gas has been flowing through the South Disouq Central Processing
Facility ("CPF") since 7 November 2019 with all four production
wells and the CPF performing as expected. The Company has been
producing at a gross stabilised rate of approximately 50 MMcfe/d
since 10 December 2019 which was approximately three months ahead
of expectations.
All gas production is sold to the Egyptian national gas company,
EGAS, at a fixed price of US$2.85/Mcf, with the Government of
Egypt's entitlement share of gross production equating to
approximately 51%.
GCA is an independent qualified reserves auditor and the South
Disouq reserves audit as at 30 September 2019 was performed in
accordance with the Canadian Oil and Gas Evaluation Handbook (as
those terms are defined in National Instrument 51-101- Standards of
Disclosure for Oil and Gas Activities of the Canadian Securities
Administrators) and the Society of Petroleum Engineers' Petroleum
Resources Management System.
Mark Reid, CEO of SDX, commented:
"We are pleased to announce that our 2P reserves at South Disouq
have increased by 35% to gross 89 BCFE and that the wells and CPF
continue to produce at a stabilised rate of approximately 50
MMscfe/d. We are now looking forward to the commencement of our
South Disouq drilling campaign in February when we will be spudding
the first of two wells targeting the same horizons encountered in
our four discoveries to date. If successful, these wells have the
potential to significantly increase our existing reserves and can
be quickly tied into the South Disouq CPF. Depending on partnering
discussions, a third well targeting deeper prospectivity in a
potential new play fairway, may be drilled later in 2020."
About SDX
SDX is an international oil and gas exploration, production and
development company, headquartered in London, United Kingdom, with
a principal focus on MENA. In Egypt, SDX has a working interest in
three producing assets. In the South Disouq gas field in the Nile
Delta, the Company is operator and has a 55% working interest. In
the Eastern Desert, adjacent to the Gulf of Suez, the Company has
two non-operated oil interests; 50% in North West Gemsa and 50% in
Meseda. In Morocco, SDX has a 75% working interest in the Sebou
concession, situated in the Gharb Basin. These producing gas assets
in Morocco are characterised by exceptionally low operating costs
and fixed price gas contracts making them particularly resilient in
a low oil price environment. SDX's portfolio also includes high
impact exploration opportunities in both Egypt and Morocco.
For further information, please see the Company's website at
www.sdxenergy.com or the Company's filed documents at
www.sedar.com.
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 Rob Cook, VP
Subsurface of SDX. Dr. Cook has over 25 years of oil and gas
industry experience, 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
Mark Reid
Chief Executive Officer
Tel: +44 203 219 5640
Stifel Nicolaus Europe Limited (Nominated Adviser and Joint Broker)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Cantor Fitzgerald Europe (Joint Broker)
David Porter
Tel: +44 207 7894 7000
Camarco (PR)
Billy Clegg/Owen Roberts/Violet Wilson
Tel: +44 203 757 4980
Glossary
"BCF" Billions of cubic feet
"BCFE" Billions of cubic feet equivalent
"Mcf" Thousands of cubic feet
"MMbbl" Millions of barrels
"MMcfe/d" Millions of cubic feet equivalent
per day
"Reserves" Those quantities of oil and
gas anticipated to be commercially
recoverable from discovered
resources from a given date
forward
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
the Company's upcoming drilling campaign at South Disouq, should
all 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
SDX's Management's Discussion & Analysis for the three and nine
months ended 30 September 2019, which can be found on SDX's SEDAR
profile at www.sedar.com, for a description of additional risks and
uncertainties associated with SDX's business, including its
exploration, development and production activities.
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.
Oil and Gas Advisory
Estimates of reserves have been made, assuming the development
of each property in which the estimate is made will actually occur,
without regard to the likely availability to the Company of funding
required for the development of such reserves.
Any estimates of reserves and future net revenue for individual
properties may not reflect the same confidence level as estimates
of reserves and future net revenue for all properties, due the
effects of aggregation. Certain disclosure in this news release
constitute "anticipated results" for the purposes of National
Instrument 51-101 - Standards of Disclosure for Oil and Gas
Activities of the Canadian Securities Administrators because the
disclosure in question may, in the opinion of a reasonable person,
indicate the potential value or quantities of resources in respect
of the Company's resources or a portion of its resources. Without
limitation, the anticipated results disclosed in this news release
include estimates of volume attributable to the resources of the
Company. Such estimates have been prepared by management of the
Company and have not been prepared or reviewed by an independent
qualified reserves evaluator or auditor. Anticipated results are
subject to certain risks and uncertainties, including those
described above and various geological, technical, operational,
engineering, commercial, and technical risks. In addition, the
geotechnical analysis and engineering to be conducted in respect of
such resources is not complete. Such risks and uncertainties may
cause the anticipated results disclosed herein to be inaccurate.
Actual results may vary, perhaps materially.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDUPUBAGUPUPGQ
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January 07, 2020 02:15 ET (07:15 GMT)
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