Proactive Investors - Run By Investors For Investors

SDX Energy first quarter shows benefits of well successes

As newly added wells are completed the AIM-quoted oil and gas continues to grow production volumes
oil and gas operations
Production presently averages around 3,474 boepd

Financial results for the first quarter confirmed SDX Energy Inc (LON:SDX, CVE:SDX) is benefitting from its operational successes in Egypt and Morocco.

The months were punctuated by exploration and appraisal achievements, which add to the group’s growing production profile.

Output for the three months, ended March 31, averaged 3,036 barrels of oil equivalent.

WATCH: SDX Energy 'hitting its stride' & benefiting from operational success

Production grew further in the subsequent period, with the rate rising to 3,474 boepd by May 15.

Financially, it was a good quarter. Net revenue amounted to US$11mln, up from US$8.1mln in the comparative period of 2017.  The average realised gas price in Morocco increased to US$10.03 per thousand cubic feet, up from US$9.29, while the netback per barrel came in at US$32.8 up from US$23.60.

SDX reported first quarter earnings of US$7.4mln, up from US$1.6mln. Cash generation improved to US$11mln, up from US$3.1mln in the 2017 comparative.

It ended the quarter with US$29.3mln of cash and equivalents.

A busy and productive period

“The first quarter of 2018 was a busy period for SDX and one which saw the Company significantly increase its net revenue and overall production year on year,” said Paul Welch, SDX chief executive.

“We also made important operational progress across our portfolio.”

He added: “Throughout the period, we remained focused on strict capital discipline and continued to monitor opportunities that would enable us to increase our asset base in North Africa. 

“As at March 31, 2018, we are well funded for our numerous work commitments this year with US$29.3mln of cash, no debt and we remain on track to double our production by the end of 2018."

View full SDX profile View Profile

SDX Energy Inc Timeline

Related Articles

oil and gas operations
November 12 2018
The second well at Verbier has the potential to significantly upgrade the size and commercial potential of the presently undeveloped oil field
Unique design of the mid-body of the Optimum ship
October 02 2018
The company’s Optimum ship is being designed to optimise the transportation of compressed natural gas (CNG).
Nevada
October 26 2018
"The nature of the Hot Creek Valley geology is posing challenges."

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use