SDX announced that its average entitlement production from its core assets has reached 5,886 barrels of oil equivalent per day (boe/d) during the twelve months ended in December 2021.
The company elaborated that entitlement production reached 4,465 boe/d from South Disouq and 457 boe/d from West Gharib.
SDX elaborated that South Disouq wells were “successfully worked over during the period and were put back on production at improved rates and with reduced sand and water production”.
Regarding West Gharib wells, it added also that the wellstock continued to produce steadily although exhibiting natural decline as expected.
For 2022, the company has set total production guidance of 3,300-3,550 boe/d, which is lower than 2021 production due to the suggested disposal of 33% of the company’s interests in the South Disouq assets. SDX pointed out that this is in addition to the decision not to immediately renew an expired customer contract in Morocco.
However, the development drilling in West Gharib is expected to compensate the natural decline in production which will help increase volumes when the new wells come online.
Mark Reid, CEO of SDX, commented: “I am pleased to announce that 2021 production was at the higher end of guidance and that capex was within guidance. Our cash management in the year has also been strong, with cash at the year-end growing to US$10.6 million from US$10.1 million last year.”