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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."

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