{"id":12842,"date":"2022-11-21T06:07:20","date_gmt":"2022-11-21T06:07:20","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=12842"},"modified":"2022-11-21T06:07:20","modified_gmt":"2022-11-21T06:07:20","slug":"sdx-energy-provides-financial-operating-results-for-the-3-9-months-ended-30-september-2022","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/sdx-energy-provides-financial-operating-results-for-the-3-9-months-ended-30-september-2022\/","title":{"rendered":"SDX Energy Provides Financial & Operating Results for the 3 & 9 Months Ended 30 September 2022"},"content":{"rendered":"

YTD 9 months 2022 key highlights:<\/span>\u00a0<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Production of 512 bbls\/d and 19.3mmscf\/d (3,729 boe\/d), 3% higher than mid-point full year guidance of<\/span>\u00a03,480 – 3,795<\/span>\u00a0boe\/d.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0EBITDAX of\u00a0US$21.6 million\u00a0and operating cash flow (before capex) of\u00a0US$15.0 million.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Out of the 14 wells completed across SDX’s portfolio in the year to date, eight were producing as at\u00a030 September 2022, two were connected to production post period-end and another two will be connected by the end of\u00a0November 2022.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Capex\u00a0US$22.4 million\u00a0compared to revised full year guidance of<\/span>\u00a0US$26.5\u00a0– 28.0 million<\/span>.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Net Cash\u00a0position of\u00a0US$9.4 million\u00a0(unaudited) as at\u00a030 September 2022.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Aleph Commodities\u00a0and a group of investors acquired a strategic stake in the Company with a view to provide support and financing for growth initiatives.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Carbon intensity of 3.8kg CO2<\/sub>e\/boe YTD’22 at operated assets.<\/span>\u00a0<\/span><\/p>\n

Mark Reid, CEO of SDX, commented:<\/span>\u00a0<\/span><\/p>\n

“SDX’s business continued to generate strong EBITDAX and operating cash flow for the nine months to date. We have also successfully drilled thirteen development and exploration wells across our three assets and are delivering on our production guidance. Due to higher than expected standby costs for equipment needed to maintain facility operations, we have increased our Capex guidance for the year.<\/span><\/em><\/p>\n

Three and nine months to\u00a030 September 2022\u00a0Operations Highlights<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n\n

Three months ended<\/span><\/p>\n

30 September<\/span><\/p>\n<\/td>\n

\n

Nine months ended<\/span><\/p>\n

30 September<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

US$ million, except per unit amounts<\/span><\/span><\/p>\n<\/td>\n

\n

2022<\/span><\/p>\n<\/td>\n

\n

2021<\/span><\/p>\n<\/td>\n

\n

2022<\/span><\/p>\n<\/td>\n

\n

2021<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net revenues(1)<\/sup>\u00a0<\/span><\/p>\n<\/td>\n

\n

11.1<\/span><\/p>\n<\/td>\n

\n

12.9<\/span><\/p>\n<\/td>\n

\n

33.4<\/span><\/p>\n<\/td>\n

\n

40.0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Netback(1)(3)<\/sup>\u00a0<\/span><\/p>\n<\/td>\n

\n

8.5<\/span><\/p>\n<\/td>\n

\n

10.5<\/span><\/p>\n<\/td>\n

\n

26.4<\/span><\/p>\n<\/td>\n

\n

32.6<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net realised average oil service fees – US$\/barrel<\/span><\/p>\n<\/td>\n

\n

77.81<\/span><\/p>\n<\/td>\n

\n

57.90<\/span><\/p>\n<\/td>\n

\n

81.42<\/span><\/p>\n<\/td>\n

\n

52.98<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net realised average\u00a0Morocco\u00a0gas price – US$\/Mcf<\/span><\/p>\n<\/td>\n

\n

9.91<\/span><\/p>\n<\/td>\n

\n

11.39<\/span><\/p>\n<\/td>\n

\n

10.56<\/span><\/p>\n<\/td>\n

\n

11.40<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net realised South Disouq gas price – US$\/Mcf(2)<\/sup>\u00a0<\/span><\/p>\n<\/td>\n

\n

2.85<\/span><\/p>\n<\/td>\n

\n

2.85<\/span><\/p>\n<\/td>\n

\n

2.85<\/span><\/p>\n<\/td>\n

\n

2.85<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Netback – US$\/boe<\/span><\/p>\n<\/td>\n

\n

18.15<\/span><\/p>\n<\/td>\n

\n

19.53<\/span><\/p>\n<\/td>\n

\n

19.97<\/span><\/p>\n<\/td>\n

\n

20.25<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

EBITDAX(1)(3)<\/sup>\u00a0<\/span><\/p>\n<\/td>\n

\n

6.4<\/span><\/p>\n<\/td>\n

\n

9.8<\/span><\/p>\n<\/td>\n

\n

21.6<\/span><\/p>\n<\/td>\n

\n

29.7<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Exploration & evaluation expense (“E&E”)\u00a0<\/span><\/p>\n<\/td>\n

\n

(0.3)<\/span><\/p>\n<\/td>\n

\n

(1.8)<\/span><\/p>\n<\/td>\n

\n

(0.8)<\/span><\/p>\n<\/td>\n

\n

(12.7)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Depletion, depreciation, and amortisation (“DD&A”)<\/span><\/p>\n<\/td>\n

\n

(4.9)<\/span><\/p>\n<\/td>\n

\n

(8.4)<\/span><\/p>\n<\/td>\n

\n

(15.3)<\/span><\/p>\n<\/td>\n

\n

(23.3)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total comprehensive loss(4)<\/sup>\u00a0<\/span><\/p>\n<\/td>\n

\n

(1.2)<\/span><\/p>\n<\/td>\n

\n

(2.0)<\/span><\/p>\n<\/td>\n

\n

(2.4)<\/span><\/p>\n<\/td>\n

\n

(12.1)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Capital expenditure<\/span><\/p>\n<\/td>\n

\n

10.3<\/span><\/p>\n<\/td>\n

\n

3.8<\/span><\/p>\n<\/td>\n

\n

22.4<\/span><\/p>\n<\/td>\n

\n

19.6<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net cash generated from operating activities<\/span><\/p>\n<\/td>\n

\n

4.6<\/span><\/p>\n<\/td>\n

\n

7.7<\/span><\/p>\n<\/td>\n

\n

15.0<\/span><\/p>\n<\/td>\n

\n

22.6<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net cash and cash equivalents<\/span><\/p>\n<\/td>\n

\n

9.4<\/span><\/p>\n<\/td>\n

\n

9.8<\/span><\/p>\n<\/td>\n

\n

9.4<\/span><\/p>\n<\/td>\n

\n

9.8<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/span><\/span><\/p>\n

\u00a0<\/span>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Entitlement production for the nine months ended\u00a030 September 2022\u00a0of 3,729 boe\/d was 3% higher than 2022 mid-point guidance of 3,638 boe\/d, driven by strong performances in\u00a0Morocco\u00a0and at South Disouq, with West Gharib’s production lower than expected due to drilling delays and higher water and sand production from some wells drilled on the flanks of the Meseda field.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0The Company’s operated assets recorded a carbon intensity of 3.8kg CO2<\/sub>e\/boe during the first nine months of 2022.<\/span><\/p>\n

\u00a0<\/span>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0In South Disouq, the planned three-well drilling campaign has been successfully completed. The SD-5X and SD-12_East discoveries have been brought online ahead of schedule, delivering production and cash flow. The MA-1X gas discovery well is in the process of being evaluated to determine a commercialisation strategy.<\/span><\/p>\n

\u00a0<\/span>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0In West Gharib, six wells have been successfully completed and are on production. Post period-end the next two wells in the campaign, MSD-28 and MSD-22, were drilled and reached TD on 14 October 2022 and 25 October 2022 respectively. MSD-28 encountered 161ft of net oil pay and MSD-22 103ft of net oil pay. Both wells are expected to be on production in Q4 2022.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0In\u00a0Morocco, both wells (SAK-1 and KSR-20) in the two-well drilling campaign during Q3 2022 discovered gas. SAK-1 was subsequently tied into the Company infrastructure with production commenced post period-end. KSR-20 is currently undergoing testing and will be brought on production in Q4 2022. During Q3, several workovers were performed to access behind-pipe reserves.<\/span>\u00a0<\/span><\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Netback for the nine months to\u00a030 September 2022\u00a0was\u00a0US$26.4 million, 19% lower than the same period in 2021. Netback contribution from South Disouq was\u00a0US$11.2 million\u00a0(YTD’21:\u00a0US$12.1 million) due to lower gas and condensate production owing to natural decline being partly offset by higher realised price for condensate and lower opex. West Gharib Netback increased by\u00a0US$1.8 million\u00a0compared to the same period in 2021 due to the increase in the realised oil service fee, partly offset by lower production. Morocco Netback was lower in the nine months to\u00a030 September 2022\u00a0by\u00a0US$7.1 million\u00a0compared to the same period in 2021 due to lower production. Morocco Netback was further impacted by lower realised pricing due to the weakening of the Moroccan Dirham against the US Dollar.<\/span>\u00a0<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0EBITDAX for the nine months to\u00a030 September 2022\u00a0of\u00a0US$21.6 million\u00a0was 27% lower than the same period in 2021 of\u00a0US$29.7 million\u00a0due to lower Netback, as described above.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0YTD’22 the depletion, depreciation and amortisation (“DD&A”) charge of\u00a0US$15.3 million\u00a0was lower than the\u00a0US$23.3 million\u00a0for the same period in 2021 due to lower production in\u00a0Morocco\u00a0and a lower depreciable asset base in South Disouq, following the accelerated depreciation of the SD-12X borehole costs during H2 2021 and impairment recognised at year-end 2021.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0YTD’22 operating cash flow (before capex) of\u00a0US$15.0 million, was lower than the same period in 2021 of\u00a0US$22.6 million, mainly due to lower EBITDAX as explained above.<\/span>\u00a0<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Capex of\u00a0US$22.4 million, reflects:<\/span>\u00a0<\/span><\/p>\n

o\u00a0\u00a0<\/span>\u00a0US$8.7 million\u00a0for the three-well drilling campaign at South Disouq split between:\u00a0US$1.9 million\u00a0for the drilling, completion, testing and tie in of the SD-5X well,\u00a0US$3.0 million\u00a0for the drilling, completion and tie in of the SD-12_East well and\u00a0US$2.7 million\u00a0for the drilling, completion and testing of the MA-1X well. In addition,\u00a0US$0.8 million\u00a0has been spent on several workovers and\u00a0US$0.2 million\u00a0on other exploration costs;<\/span><\/p>\n

o\u00a0\u00a0<\/span>\u00a0US$11.5 million\u00a0in\u00a0Morocco\u00a0covering; pre-drilling and standby expenditure for the recommencement of the\u00a0Morocco\u00a0drilling campaign (US$2.5 million), the drilling and completion costs for SAK-1 (US$4.3 million) and KSR-20 (US$2.1 million),\u00a0US$1.5 million\u00a0of additional expenditure on the KSR-19 well and\u00a0US$1.1 million\u00a0on various workovers and infrastructure works; and<\/span><\/p>\n

o\u00a0\u00a0<\/span>\u00a0US$2.2 million\u00a0of West Gharib drilling costs across the eight wells drilled.<\/span>\u00a0<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Liquidity: The Company’s net cash position as at\u00a030 September 2022\u00a0was\u00a0US$9.4 million, with cash balances of\u00a0US$14.9 million\u00a0offset by\u00a0US$5.5 million\u00a0drawn debt from the\u00a0European Bank of Reconstruction\u00a0and Development\u00a0(“EBRD”) credit facility. As a result of various geopolitical factors, US dollar transfers by the\u00a0Central Bank of Egypt\u00a0have been delayed resulting in the need to draw the EBRD facility to pay head office general and administrative costs and certain US$ denominated operational expenses. It has been possible recently to repatriate funds, albeit this has incurred FX trading costs. Under the existing facility with the EBRD,\u00a0US$0.2 million\u00a0of additional undrawn lines remain available to the Company.<\/span><\/p>\n

YTD’22 Performance vs 2022 Guidance<\/span><\/span><\/p>\n

Production<\/span><\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0Average entitlement production as at\u00a030 September 2022\u00a0of 3,729 boe\/d, which was 3% higher than mid-point 2022 market guidance of 3,638 boe\/d.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
\n

Gross production<\/span><\/p>\n<\/td>\n

\n

SDX entitlement production (boe\/d)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Asset<\/span><\/p>\n<\/td>\n

\n

Guidance<\/span>\u00a0–<\/span>\u00a012 months ended\u00a031 December 2022<\/span><\/p>\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Actual<\/span>\u00a0–<\/span>\u00a09 months ended\u00a030 September 2022<\/span><\/p>\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Guidance<\/span>\u00a0–<\/span>\u00a012 months ended\u00a031 December 2022<\/span><\/p>\n<\/td>\n

\n

Actual – 9 months ended\u00a030 September 2022<\/span><\/p>\n<\/td>\n

\n

Actual – 9 months ended\u00a030 September 2021<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Core assets<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

South Disouq – WI 36.9% & 67.0%(1)<\/sup><\/span><\/p>\n<\/td>\n

\n

38 – 40 MMscfe\/d<\/span><\/p>\n<\/td>\n

\n

38.7 MMscfe\/d<\/span><\/p>\n<\/td>\n

\n

2,500 – 2,700(2)<\/sup><\/span><\/p>\n<\/td>\n

\n

2,724<\/span><\/p>\n<\/td>\n

\n

4,477(3)<\/sup><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

West Gharib – WI 50%<\/span><\/p>\n<\/td>\n

\n

2,000 – 2,450 bbl\/d<\/span><\/p>\n<\/td>\n

\n

2,032 bbl\/d<\/span><\/p>\n<\/td>\n

\n

380 – 470<\/span><\/p>\n<\/td>\n

\n

389<\/span><\/p>\n<\/td>\n

\n

473<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Morocco\u00a0– WI 75%<\/span><\/p>\n<\/td>\n

\n

4.8 – 5.0 MMscf\/d<\/span><\/p>\n<\/td>\n

\n

4.9 MMscf\/d<\/span><\/p>\n<\/td>\n

\n

600 – 625<\/span><\/p>\n<\/td>\n

\n

616<\/span><\/p>\n<\/td>\n

\n

951<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

3,480 – 3,795<\/span><\/p>\n<\/td>\n

\n

3,729<\/span><\/p>\n<\/td>\n

\n

5,901<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(1)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/sup>\u00a0After completion of the South Disouq disposal with effect from\u00a01 February 2022.<\/span><\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/sup>\u00a0Net of minority interest. Gross of minority interest, production guidance is expected to be 3,500 – 3,700 boe\/d.<\/span><\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/sup>\u00a030 September 2021\u00a0South Disouq entitlement production is shown at pre-disposal working interest of 55%\/100%.<\/span><\/p>\n

o\u00a0<\/span>\u00a0South Disouq<\/span>:\u00a0During the first nine months of 2022, the existing wells continued to exhibit natural decline and expected sand and water production, albeit this was partly offset by contribution from the two wells (SD-5X and SD-12_East) that came into production after 30 September 2021. Production guidance for 2022 reflects the disposal of 33% of SDX’s interest in the asset, 2-3% CPF and compressor downtime due to planned maintenance, the successful drilling of SD-12_East and SD-5X and several well workovers. The MA-1X gas discovery well is in the process of being evaluated to determine a commercialization strategy.<\/span><\/span>\u00a0<\/span><\/p>\n

o\u00a0<\/span>\u00a0West Gharib:<\/span>\u00a0The existing well stock at the asset continued to produce steadily, albeit exhibiting natural decline as expected, partly offset by the contribution from the recently drilled eight wells of which six wells were on production as at 30 September 2022 and successful well workovers. Some of the new wells that were drilled on the flanks of the Meseda field have exhibited higher water and sand production than previously expected. The development drilling campaign will arrest the asset’s natural decline, with new wells beginning to grow production into 2023.<\/span><\/p>\n

\u00a0<\/span>o\u00a0<\/span>\u00a0Morocco:<\/span>\u00a0The first nine months of 2022 saw strong demand from the customer portfolio, although consumption in the third quarter was lower compared to consumption during the first six months of the year due to summer\/EID demand slowdown. 2022 production guidance is lower than 2021 production as the Company evaluates its ability to deliver to new and existing consumers based on its current reserves base and pricing environment.<\/span><\/p>\n

Capex<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0The Company is updating its 2022 capex guidance to\u00a0US$26.5-28.0 million\u00a0(previously\u00a0US$25.5-27.0 million) as it has incurred higher than anticipated standby charges for drilling equipment in\u00a0Morocco. It was necessary to incur these charges to ensure appropriate operational flexibility for the two-well campaign.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a02022 capex is fully-funded and predominantly relates to one appraisal and two exploration wells in South Disouq, up to eight new wells and facilities upgrades in West Gharib, and two new wells and a number of workovers in\u00a0Morocco.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>\u00a0The remaining capex activities for 2022 includes two wells in West Gharib, a well workover in South Disouq and completion and the connection of one well in\u00a0Morocco.<\/span><\/p>\n

\n\n\n\n\n\n\n\n
\n

Asset<\/span><\/p>\n<\/td>\n

\n

Guidance – 12 months ended\u00a031 December 2022<\/span><\/p>\n<\/td>\n

\n

Actual – 9 months ended\u00a030 September 2022<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

South Disouq – WI 36.9% & 67.0%(1)<\/sup><\/span><\/p>\n<\/td>\n

\n

US$9.0\u00a0– 9.5 million(2)<\/sup><\/span><\/p>\n<\/td>\n

\n

US$8.7 million(3)<\/sup><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

West Gharib – WI 50%<\/span><\/p>\n<\/td>\n

\n

US$4.5\u00a0– 5.0 million<\/span><\/p>\n<\/td>\n

\n

US$2.2 million<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Morocco\u00a0– WI 75%<\/span><\/p>\n<\/td>\n

\n

US$13.5\u00a0– 14.0 million<\/span><\/p>\n<\/td>\n

\n

US$11.5 million<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total<\/span><\/p>\n<\/td>\n

\n

US$26.5\u00a0– 28.0 million<\/span><\/p>\n<\/td>\n

\n

US$22.4 million<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(1)\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/sup>\u00a0After completion of the South Disouq disposal with effect from\u00a01 February 2022.<\/span><\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/sup>\u00a0As the legal entity that holds the South Disouq asset is 100% consolidated in the financial statements of the Company, capex guidance is gross of minority interest. Net of minority interest, capex guidance is\u00a0US$7.5\u00a0– 8.0 million.<\/span><\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/sup>\u00a0Includes\u00a0US$0.7 million\u00a0of decommissioning provisions. Net of minority interest, SDX’s share of capex for the 9 months ended\u00a030 September 2022\u00a0was\u00a0US$6.3 million.<\/span><\/p>\n

\u00a0<\/span>o\u00a0<\/span>\u00a0South Disouq<\/span>: One appraisal well, SD-12_East, and two exploration wells, SD-5X (Warda) and MA-1X (Mohsen), have been drilled during the first nine months to\u00a030 September 2022. The SD-5X well discovered gas in the basal Kafr El Sheikh sand, with EUR similar to the pre-drill expectation. SD-5X was tied-in and started production\u00a013 May 2022\u00a0and is currently producing at around 10 MMscf\/d of dry gas and c.100 bbl\/d of condensate. The second well in the campaign, SD-12_East (Ibn Yunus North\u00a0development lease) was successfully drilled and brought onto production on\u00a01 July 2022\u00a0and is currently producing at around 7 MMscf\/d, with no condensate. The third and final well of the 2022 South Disouq drilling campaign, MA-1X on the Mohsen prospect in the Exploration Extension Area, is a gas discovery in the primary Kafr El Sheikh Fm reservoir target finding 56.3ft of high-quality net gas pay. A well-test was conducted on MA-1X and is currently being evaluated to determine a commercialisation strategy. Following the disposal transaction, all three wells have been drilled with partner participation. In addition to the drilling activity, several well workovers will be undertaken to maximise recovery from the fields.<\/span><\/p>\n

\u00a0<\/span>o\u00a0<\/span>\u00a0West Gharib:<\/span>\u00a0The development drilling campaign which saw three wells being drilled completed, tied-in and brought on-line during the first half of the year continued throughout the third quarter.<\/span>\u00a0The MSD-23 well, which spudded in Q2, reached TD on\u00a011 July 2022\u00a0and encountered 131.5ft of good quality net-oil pay. MSD-23 also found an undepleted oil sand above the main Meseda reservoir interval, which represents a new reservoir that will be exploited at a future date. MSD-27, spudded on\u00a022 July 2022\u00a0and reached TD on\u00a07 August 2022, encountering 137.3ft of good-quality, net oil pay sandstone. The MSD-20 well, which spud\u00a05 April 2022\u00a0but encountered technical difficulties, was side-tracked and ultimately reached TD on\u00a023 August 2022, finding 58.5ft of good quality net-oil pay. The Rabul Field exploration well,\u00a0Rabul Deep-1, spud\u00a021 August 2022\u00a0and reached TD in the Matulla Formation on\u00a017 September 2022. The well did not encounter hydrocarbons and is likely to be completed as a water injector. A total of 10 well workovers across the concession were undertaken during the third quarter of 2022, relating to a variety of operations (sand clean-out, tubing replacement, pump replacement, and recompletions to shallower reservoir sections).<\/span><\/p>\n

o\u00a0<\/span>\u00a0Morocco:<\/span>\u00a0The Company concentrated on maximising recovery from its existing well stock, utilising its two compressors. During the third quarter, the 2022 drilling campaign commenced with the spudding of the SAK-1 well on\u00a06 August 2022. The SAK-1 well reached TD of 1,196m MD on\u00a024 August 2022\u00a0and encountered a gas sand at the primary target interval at 1,107m MD finding 3.7m of net pay with an average porosity of 31%. A secondary gas sand was found at 1,079.6m MD, with a net pay thickness of 1.1m and an average porosity of 28%. The well was subsequently tied into the Company’s infrastructure and production commended post period-end. The second well in the campaign, KSR-20, spud\u00a012 September 2022\u00a0and reached TD of 1,410m MD post period-end on\u00a01 October 2022, finding the primary target gas sands at 1,265m MD. The well is currently undergoing testing and will be brought on production in Q4 2022. In addition to the drilling campaign, workovers were performed to access behind-pipe reserves in a number of wells.<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

YTD 9 months 2022 key highlights:\u00a0 \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Production of 512 bbls\/d and 19.3mmscf\/d (3,729 boe\/d), 3% higher than mid-point full year guidance of\u00a03,480 – 3,795\u00a0boe\/d. \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0EBITDAX of\u00a0US$21.6 million\u00a0and operating cash flow … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":11189,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7446,11],"tags":[10352,1629,10824,10497,7630,7626],"class_list":["post-12842","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-north-africa","category-top-news","tag-mohsen-prospect","tag-morocco","tag-rabul-deep-1","tag-rabul-field","tag-south-disouq","tag-west-gharib","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/11\/Morocco-SDX-Energy.jpg?fit=2048%2C1407&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3l8","jetpack-related-posts":[{"id":13635,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-sdx-energy-provides-operating-results-for-the-12-months-ended-31-december-2022\/","url_meta":{"origin":12842,"position":0},"title":"EGYPT: SDX Energy Provides Operating Results for the 12 months ended\u00a031 December 2022","author":"","date":"April 30, 2023","format":false,"excerpt":"Full year 2022 key results: \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Net Production, 3,723 boe\/d (507 bbls\/d and 19.3mmscf\/d), marginally ahead of mid-point full year guidance of\u00a03,480 - 3,795\u00a0boe\/d. \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0EBITDAX of\u00a0US$24.6 million\u00a0and operating cash flow (before capex) of\u00a0US$16.9 million. \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Out of 14 wells completed across SDX's portfolio in the year to date, twelve were put on\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/04\/Morocco-SDX-Energy.jpg?fit=1200%2C824&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/04\/Morocco-SDX-Energy.jpg?fit=1200%2C824&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/04\/Morocco-SDX-Energy.jpg?fit=1200%2C824&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/04\/Morocco-SDX-Energy.jpg?fit=1200%2C824&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/04\/Morocco-SDX-Energy.jpg?fit=1200%2C824&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":13376,"url":"https:\/\/www.oilnewskenya.com\/index.php\/sdx-energy-provides-egypt-morocco-operational-update\/","url_meta":{"origin":12842,"position":1},"title":"SDX Energy Provides Egypt & Morocco Operational Update","author":"","date":"March 1, 2023","format":false,"excerpt":"Egypt\u00a0- South Disouq \u00b7\u00a0\u00a0\u00a0\u00a0Average gross production of 38.5 MMscfe\/d (2,720 boe\/d net to SDX) for full year 2022. \u00b7\u00a0\u00a0\u00a0\u00a0The SD-5X well, drilled in Q2 2022, is on production and is exceeding the immediate post-drill volume expectations.\u00a0 It is expected in place volumes will be increased for this well.\u00a0 \u00b7\u00a0\u00a0\u00a0\u00a0Evaluation of\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Egypt-South-Disouq.jpg?fit=591%2C539&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Egypt-South-Disouq.jpg?fit=591%2C539&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Egypt-South-Disouq.jpg?fit=591%2C539&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":9441,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-morocco-sdx-energy-provides-operational-update\/","url_meta":{"origin":12842,"position":2},"title":"EGYPT\/ MOROCCO: SDX Energy Provides Operational Update","author":"","date":"November 19, 2020","format":false,"excerpt":"Nine months to\u00a030 September 2020\u00a0Operations Highlights\u00a0 \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Average entitlement production of 6,646 boe\/d, an increase of 90% from the nine months to\u00a030 September 2019\u00a0(3,501 boe\/d) and 64% higher than average production during FY 2019 (4,062 boe\/d) due to strong production levels mainly from South Disouq, which delivered gross production of 48.6\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":12067,"url":"https:\/\/www.oilnewskenya.com\/index.php\/sdx-energy-announces-full-year-financial-and-operating-results\/","url_meta":{"origin":12842,"position":3},"title":"SDX Energy Announces Full Year Financial and Operating results","author":"","date":"March 21, 2022","format":false,"excerpt":"SDX Energy has announced its audited financial and operating results for the twelve months ended 31 December 2021. All monetary values are expressed in United States dollars net to the Company unless otherwise stated. Mark Reid, CEO of SDX, commented: \"2021 was a year of both challenges and successes. Our\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":12117,"url":"https:\/\/www.oilnewskenya.com\/index.php\/sdx-energy-announces-full-year-financial-and-operating-results-2\/","url_meta":{"origin":12842,"position":4},"title":"SDX Energy Announces Full Year Financial and Operating results","author":"","date":"March 21, 2022","format":false,"excerpt":"SDX Energy has announced its audited financial and operating results for the twelve months ended 31 December 2021. All monetary values are expressed in United States dollars net to the Company unless otherwise stated. Mark Reid, CEO of SDX, commented: \"2021 was a year of both challenges and successes. Our\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":10064,"url":"https:\/\/www.oilnewskenya.com\/index.php\/egypt-morocco-sdx-energy-provides-full-year-2020-financial-operating-results\/","url_meta":{"origin":12842,"position":5},"title":"EGYPT\/ MOROCCO: SDX Energy Provides Full Year 2020 Financial & Operating Results","author":"","date":"March 21, 2021","format":false,"excerpt":"Mark Reid, CEO of SDX, commented: \"After what has been a very disruptive period for both businesses and people, I am extremely pleased to announce a set of results featuring record production, a strong balance sheet and successful drilling results.\u00a0 Operationally, 2020 was a strong year for the Group and\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/SDX-Energy.png?fit=541%2C306&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=12842"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12842\/revisions"}],"predecessor-version":[{"id":12843,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/12842\/revisions\/12843"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/11189"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=12842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=12842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=12842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}