SDX Energy reports operational progress in 2022

Oil and gas explorer SDX Energy updated the market on its 2022 operations on Wednesday, reporting that at Egypt's South Disouq, it achieved an average gross production of 38.5 million standard cubic feet equivalent per day with the SD-5X well, drilled in the second quarter, exceeding initial volume expectations.

The AIM-traded firm said it had completed the evaluation of the MA-1X well, and was moving forward with an application for a development lease for the Mohsen discovery.

Workover operations would be performed on three wells in 2023 to maximise recovery.

At Egypt's West Gharib, SDX said it produced an average gross production of 2,033 barrels of oil equivalent per day in 2022.

The company drilled and completed two new wells as part of its ongoing development infill drilling campaign, with the Rabul SE-1 exploration well currently under operation, and workover operations ongoing to increase recovery from existing wells.

SDX said it was also evaluating options to increase recovery, and was planning to bring water injection to the Rabul field.

In Morocco, the company's gross production averaged 4.9 million standard cubic feet per day in 2022.

The SAK-1 discovery well and KSR-20 discovery well were both connected to the network and were on production, with the firm currently testing and tying-in the BMK-1 discovery, with plans to connect infrastructure to the DOB region.

On the corporate front, SDX Energy announced the engagement of Crowe as its new auditor, pending approval by shareholders at the next annual general meeting.

The firm said it expected to publish its 2022 year-end results near the end of April.

It said its new vision included operational and technical excellence, disciplined growth, profitability, and cash flow generation through organic and inorganic opportunities.

Additionally it said Daan Hanssen, the interim chief financial officer, had tendered his resignation and would be leaving the company at the end of May.

“Since my appointment to SDX, we have made solid operational progress, particularly in Egypt despite the current volatile currency situation in the country,” said executive chairman Jay Bhattacherjee.

“We are pushing forward to create a sustainable and repeatable strategy to be a leading player in the energy sector and I am confident that through a disciplined approach, we will have the opportunities to deliver future growth as we implement changes to the business for the benefit of our shareholders.

“The board would like to thank Daan for his support and dedication and we wish him all the best in his future endeavours.”

At 1301 GMT, shares in SDX Energy were down 0.62% at 8p.

Reporting by Josh White for Sharecast.com.