North African-focused oil and gas business
Production set to double in 2109 and again in 2020
Sales of US$39.8mln and underlying profits of US$12.6mln in nine months to September
Major new field set to come onstream at South Disouq in middle of this year
Receivables falling in Egypt as government pays off arrears
What it owns
Gharb Centre (75%, operator, gas)
A twelve well programme is being planned to start late in 2019 and finish early in 2020.
This will boost gross production to between 9-11 MMscf/d (million cubic feet per day) per day or double the average for 2018.
Quality of recently shot seismic is fantastic says Paul Welch, SDX's (LON:SDX) chief executive and there is a lot of potential here, he adds.
Well costs are falling, while a huge gas contract with Peugeot starts in April.
Three more customers are in the pipeline.
Meseda Concession (oil, 50%, not operator)
Expected to produce 4,000-4,200 barrels daily gross in 2019.
Two wells are planned for 2019 at Meseda, which is still growing and where SDX earns a high netback.
North West Gemsa (oil, 50%, not operator)
Production is 2019 is expected at between 3,400 – 3,600 boepd gross
A mature field which is now fully developed and needs little capex so will be a cash generator.
South Disouq (gas, 55%, operator)
A huge field with potential gas of 1.3 Tcf.
First gas is expected mid-2019 with two exploration wells planned for later in the year
The initial product is expected to be between 50-60mln mcf per day, which will double SDX’s barrel equivalent production.
That though is only from two wells and SDX expects to increase this to 6 or 7 wells.
Welch says the infrastructure to the grid has a daily capacity for 150 MMscf or even higher – 150mmsf is the equivalent of 25,000 barrels.
Hook-up costs will be borne this year after which Welch expects South Disouq to churn out cash.
South Ramadan (oil, 12.75%, not operator)
SRM-3 was drilled down to a depth of 15,635 feet.
It encountered 75 feet of net conventional oil pay in its primary target, the Matulla reservoir, also 20 feet in the Brown Limestone formation and 15 feet in the Sudr section.
What the boss says: Paul Welch, chief executive
“The South Disouq project remains on track for first production later this year – towards the end of the first half – after which it will ramp up to a plateau rate of 50-60mln cubic feet of gas per day.
“We can't wait to get started.”
- South Disouq to come on stream without any additional external finance
- Balance sheet had US$20mln net cash in September
- More customers to be announced in Morocco
- Testing of SRM – 3 at South Ramadan in Egypt
Acquisition of more acreage – a deal to buy BP Egypt fell through in October
South Ramadan potential
Possibility for dividends eventually