North African-focused oil and gas business
To de-list from Canada and make London sole quote
Sales of US$39.8mln and underlying profits of US$12.6mln in nine months to September
Major new field set to come onstream at South Disouq by end of 2019
Receivables falling in Egypt as government pays off arrears
What it owns
Gharb Centre (75%, operator, gas)
A twelve well programme is being planned to start late in 2019 and finish early in 2020.
This will boost gross production to between 9-11 MMscf/d (million cubic feet per day) per day or double the average for 2018.
Quality of recently shot seismic is fantastic says Paul Welch, SDX's (LON:SDX) chief executive and there is a lot of potential here, he adds.
Well costs are falling, while a huge gas contract with Peugeot starts in April.
Three more customers are in the pipeline.
Meseda Concession (oil, 50%, not operator)
Expected to produce 4,000-4,200 barrels daily gross in 2019.
Two wells are planned for 2019 at Meseda, which is still growing and where SDX earns a high netback.
North West Gemsa (oil, 50%, not operator)
Production is 2019 is expected at between 3,400 – 3,600 boepd gross
A mature field which is now fully developed and needs little capex so will be a cash generator.
South Disouq (gas, 55%, operator)
A huge field with potential gas of 1.3 Tcf.
First gas ihas been pushed back until the end of 2019 due to uncertain about when early production facility (EPF) would be deployed.
Without it the company would need to wait until the installation of the main Central Gas Processing Facility, which is currently scheduled to complete in the fourth quarter of this year.
At full tilt, production is expected to be between 50-60mln mcf per day, which will double SDX’s barrel equivalent production.
That though is only from two wells and SDX expects to increase this to 6 or 7 wells.
Two exploration wells planned for later in the year
Welch says the infrastructure to the grid has a daily capacity for 150 MMscf or even higher – 150mmsf is the equivalent of 25,000 barrels.
Hook-up costs will be borne this year after which Welch expects South Disouq to churn out cash.
South Ramadan (oil, 12.75%, not operator)
SRM-3 was drilled down to a depth of 15,635 feet.
It encountered 75 feet of net conventional oil pay in its primary target, the Matulla reservoir, also 20 feet in the Brown Limestone formation and 15 feet in the Sudr section.
What the boss says: Paul Welch, chief executive
“The potential delay to Q4 2019 for first gas in South Disouq is disappointing.
“Discussions on the merits of the EPF are ongoing, and we will advise the market when a final decision has been reached.”
- South Disouq to come on stream without any additional external finance
- Balance sheet had US$20mln net cash in September
- More customers to be announced in Morocco
- Testing of SRM – 3 at South Ramadan in Egypt
Acquisition of more acreage – a deal to buy BP Egypt fell through in October
South Ramadan potential
Possibility for dividends eventually