SDX Energy Inc (LON:SDX) chief executive Paul Welch has highlighted that the company is now seeing the financial benefits of last year’s acquisition of Circle Oil’s assets.
"This has been one of the company's strongest quarters yet, with net revenue for the period up 271% year on year and drilling success being achieved across our North African portfolio,” Welch said in the group’s third quarter update.
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Quarterly revenue was reported at US$10.1mln, up from US$2.9mln in the same period of last year, thanks to the step up in group production as a result of the acquisition as well as improved oil prices.
The group’s net production rate at the end of September amounted to 3,280 barrels oil equivalent per day - with North West Gemsa yielding 2,106 boepd net, the company’s share of the Meseda field totalled 606 boepd, and the Morocco assets amounted to 568 boepd.
SDX realised a net oil price (for oil sales and production service fees) of US$45.61 per barrel, and the gas price was US$6.56.
The company’s cash balance amounted to US$30.5mln, compared to US$5mln at the end of September 2016.
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“We announced a successful US$10mln fundraise during the period, which allows us to accelerate our drilling programmes in Egypt and Morocco,” Welch said.
“We have made an excellent start to the Morocco drilling campaign, announcing two discoveries from the first two wells and we remain well placed to meet our production and sales targets from the programme.”
He added: “In Egypt, we are pleased to have completed the twelve well work-over programme focused on ESP installation and maintenance at North West Gemsa and remain on track to achieve our production target of c.5,000 boepd for 2017.
“At Meseda, we completed the expansion of the processing facility, increasing treating capacity to 20,000 bfpd, and at South Disouq we submitted our development plan to EGAS, and are targeting first gas on the licence during the first half of 2018.”