SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce its 2016 Third Quarter Financial and Operating Results.
Third Quarter 2016 Highlights
Corporate and Financial:
- Comprehensive income of US$0.1 MM in 3 months ended September 30, 2016;
- Comprehensive loss of US$(25.9) MM for 9 months ended September 30, 2016 due predominantly to write down of US$(24.4) MM in the Bakassi West, Cameroon exploration asset resulting from the decision to withdraw from concession;
- Invested US$0.2 MM of capital expenditure into business during Q3 2016; and
- As at September 30, 2016 cash on hand of US$5.0MM and zero debt.
- Average daily oil sales and production service fees equated to 1,214 barrels of oil per day ('BOP/D') and average daily natural gas and natural gas liquids production equated to 141 barrels of oil equivalent per day for Q3 2016 ('BOEP/D')
- During the 9 months ended September 30, 2016 average daily oil sales and production service fees equated to 1,213 BOP/D and average daily natural gas and natural gas liquids production equated to 141 BOEP/D (to be invoiced at a future date to optimize revenue recovery);
- In North West Gemsa, completed six successful well workovers in the 9 months ended September 30, 2016, one of which was completed during Q3 2016;
- In Meseda, following the successful completion of an eight well workover program and strategic initiative focussed on development optimization and increasing production, the partners completed a fluid handling review during Q3 2016 and have now launched a tendering process to secure the equipment necessary to increase facility treating capacity;
- During H1 2016 the 3D seismic acquisition was completed in South Disouq ahead of schedule and under budget. Seismic data processing continues, with interpretation to date having identified potential for both oil and gas bearing prospects with strong Class III amplitude versus offset responses observed in several prospects. Enquiries have also been received from a number of operators regarding farming in to the licence; and
- Completed technical review of prospectivity at South Ramadan development concession and an evaluation of project economics is currently underway which may lead to an exit of the concession.
- Continue with well workover program at North West Gemsa;
- Continue with redevelopment, waterflood program and facility capacity upgrade at Meseda;
- Complete 3D seismic processing and interpretation in South Disouq and drill a carried exploration well in early 2017;
- Continue to minimise costs post business combination; and
- Continue to explore opportunities to expand the asset base in the North Africa region.
Paul Welch, President & CEO of SDX Energy, commented:
'Today's Q3 report marks the end of an extremely busy and productive period for the company. We now possess a comprehensive dataset on South Disouq and have furthered our understanding of the geology, enabling us to identify the location of our 1st exploration well in the concession. We are also completing our final technical review and undertaking a tendering exercise on Meseda, after which we can start on the ground operations to increase production on the licence during the course of 2017.
Our high margin producing assets and an exciting exploration programme, combined with a strong balance sheet leave us well placed to capitalise on value accretive asset opportunities in the region.'
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