SDX company recorded an increase in its production by 90% during the first nine month of 2020 after reaching to 6,646 barrel of equivalent per day (bbloe/d) compared to 3,501 bbloe in the same period of 2019, according to SDX’s operational results.
The company attributed these positive results to the high performance of South Disouq asset which came above the expectations delivering gross production of 48.6 million standard cubic feet per day (mmscf/d) of dry gas and 467 barrel per day (bbl/d) of condensates.
According to SDX’s statement, the company completed South Disouq’s two-well drilling campaign during that period with the second well SD-12X which is expected to be connected to Ibn Yunus-1X well in Q1 2021 and produce about 10-12 mmscf/d.
SDX elaborated that the new well of Rabul-3 located in West Gharib was successfully drilled and tied to the production line during this period, achieving production higher than the guidance of 3,200-3,300 bbl/d. The company noted that it had sold North West Gemsa asset during the nine months with net $1.6 million exceeding management expectations.
The company added that it maintained its guidance at 6,000-6,250 bbloe/d for the full year production of all its assets to be higher than 2019 production by 48-54% and maintained the capex guidance at $26.2 million.
Additionally, it plans to accelerate its drilling campaign of Hanut prospect to be during Q2/Q3 of 2021 instead of H1 of 2022 targeting 139 billion cubic feet (bcf). SDX expects also to drill Mohsen and Warda prospects in 2022 targeting 26 bcf and 14 bcf, respectively.
Mark Reid, CEO of SDX, commented “I am pleased to report another strong period of production and cash generation from our portfolio in what remains a challenging period for businesses globally. Despite this, we reiterate our production guidance for 2020 and feel that we are in a very strong position to continue our excellent cash generation with approximately 90% of revenues being derived from our fixed price gas contracts. Our discovery at the SD-12X well in Egypt towards the beginning of the year is quickly being developed with initial production expected in Q1 2021.”
“Growth remains a key focus for the Management team at SDX and we were pleased to announce the identification of c.233bcf of close to infrastructure resource in drill-ready prospects at our South Disouq concession,” Reid added.