TIDMSDX
RNS Number : 7692V
SDX Energy Inc.
02 February 2017
2 February 2017
SDX ENERGY INC
("SDX" or the "Company")
EGYPT AND MOROCCO OPERATIONS UPDATE
SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil
and gas company, is pleased to provide an operational update ahead
of the forthcoming drilling campaign at South Disouq, as well as an
update on activity at the Meseda Field in Egypt, and plans for the
newly acquired Morocco licenses.
Egypt
South Disouq
Following the recent interpretation of 3D seismic data at South
Disouq, and the subsequent identification of oil and gas bearing
prospects, SDX and its partner have agreed on the location for
drilling the exploration well, as announced on 14 November 2016.
SDX is pleased to now confirm that Zenith Energy, the Aberdeen
based well engineering consultancy, has been appointed to provide
technical assistance for the drilling operations. In addition to
working with Zenith Energy, SDX has signed a Letter of Intent
("LOI") with Sino Tharwa Drilling Company ("Sino Tharwa"), the rig
contractor, who will supply the Sino-Tharwa 6 rig at South Disouq.
The rig is due to arrive late February 2017 with the carried
exploration well being spud shortly thereafter.
Meseda
Following completion of the design work on the Electrical
Submersible Pump (ESP) programme, SDX has now completed the final
technical review of the Meseda facility upgrade. SDX is currently
moving into the implementation phase during Q1 2017. The equipment
procured for the upgrade is expected to double the treatment
capacity of the central production facility ("CPF"). This will
allow the Company to maximise the field's potential and enable the
Company to target up to a 100% increase on current production
levels from the licence. Once the facilities upgrade is complete,
the workover programme will recommence.
Morocco
Following its recent acquisition of certain assets in Morocco,
the Company is reviewing options to accelerate the drilling
campaign originally planned for 2018. It is currently undertaking
an internal review of the area's identified prospectivity and high
grading the prospect portfolio. Concurrent with this, the Company
is surveying the rig market to determine timing and availability of
suitable equipment for these operations. It is the Company's
objective to accelerate drilling and increase gas production in
Morocco during 2017.
Paul Welch, CEO of SDX Energy, commented:
"Today's announcement highlights that we are entering an
exciting period for the Company as we move into the drilling phase
of our work programme at South Disouq. Solid operational progress
was made throughout 2016 and we have continued to build on this
momentum in order develop the exploration potential of the
concession, as evidenced by the signing of an LOI with Sino Tharwa
and the appointment of Zenith Energy. In addition to South Disouq,
we have seen good progress made at Meseda with the completion of
the final technical review, leaving us well placed to start on the
construction activities, which will maximise production from this
asset. Closing the recent acquisition has provided the Company with
the ability to further grow our production base in both Egypt and
Morocco and it is our intent to do so in the near term. The Company
is off to a very good start in 2017 and I look forward to reporting
on the progress of our activities in subsequent periods."
About SDX
SDX is an international oil and gas exploration, production and
development company, headquartered in London, England, UK, with a
principal focus on North Africa. In Egypt, SDX Energy has a working
interest in two producing assets (50% North West Gemsa & 50%
Meseda) located onshore in the prolific Eastern Desert, adjacent to
the Gulf of Suez. In Morocco, SDX has a 75% working interest in the
Sebou concession situated in the Rharb Basin. These producing
assets are characterised by exceptionally low operating costs
making them particularly resilient in a low oil price environment.
SDX Energy's portfolio also includes high impact exploration
opportunities in Egypt and Morocco.
For further information, please see the website of the Company
at www.sdxenergy.com or the Company's filed documents at
www.sedar.com.
For further information:
SDX Energy Inc.
Paul Welch
President and Chief Executive Mark Reid
Officer Chief Financial Officer
Tel: +44 203 219 5640 Tel: +44 203 219 5640
Cantor Fitzgerald Europe
(Nominated Adviser &
Joint Broker)
Sarah Wharry/Craig Francis
Tel: +44 207 7894 7000
FirstEnergy Capital LLP
(Joint Broker)
Jonathan Wright/David
van Erp
Tel: +44 207 448 0200
Celicourt (PR)
Mark Antelme/ Joanna
Boon / Jimmy Lea
Tel: +44 207 520 9260
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-looking Information
This news release contains statements that may constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws. Forward-looking information reflects
management's expectations regarding the future growth, results of
operations, performance of business of the Company based on
information currently available to the Company. These statements
relate to analyses and other information that are based upon
forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Any statements that
express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or are not statements of historical fact and
should be viewed as forward-looking statements. In particular,
statements concerning the future prospects and strategy of the
Company and its assets, and the results referenced or implied
herein should be viewed as forward-looking statements.
Forward looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such risks
and other factors include, among others, costs and timing of
exploration and production development, availability of capital to
fund exploration and development and political, social and other
risks inherent in carrying on business in Egypt and Morocco. There
can be no assurance that such statements will prove to be accurate
as actual results and future events could vary or differ materially
from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements
contained in this news release.
Forward-looking statements are made based on management's
beliefs, estimates and opinions on the date the statements are made
and the Company undertakes no obligation to update forward-looking
statements and if these beliefs, estimates and opinions or other
circumstances should change, except as required by applicable law.
Although SDX has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Investors are cautioned that
such forward-looking statements involve risks and uncertainties.
Actual results may differ materially from those currently
anticipated. SDX's Annual Information Form for the year ended
December 31, 2015, filed on the Company's SEDAR profile on April
29, 2016, has a full description of the risks and uncertainties
associated with the Company's business, including its exploration
activities. Such risk factors and uncertainties, as well as the
information set out under the headings "Risk Factors - Risks
relating to Egypt" and "Risk Factors - Risks relating to Morocco"
in the news release of the Company dated January 24, 2017, which is
available on the Company's SEDAR profile, should be referred to and
read in their entirety. The forward-looking statements contained
herein are expressly qualified by this cautionary statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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