SDX Energy Inc (LON:SDX) third quarter results were in line with expectations, albeit for investor the main attraction is on the company’s upcoming exploration programme.
The Egypt focussed oil and gas firm’s costs are ‘carried’ for the South Disouq prospect where drilling is due to start in early 2017.
Interpretation of seismic data continues, with other potential prospects being identified in the South Disouq area.
At the same time SDX has received enquiries from companies interested in farming in to the licence.
“Today’s Q3 report marks the end of an extremely busy and productive period for the company,” said chief executive Paul Welch.
“We now possess a comprehensive dataset on South Disouq and have furthered our understanding of the geology, enabling us to identify the location of our 1st exploration well in the concession.
“We are also completing our final technical review and undertaking a tendering exercise on Meseda, after which we can start on the ground operations to increase production on the licence during the course of 2017.”
Production averaged 1,214 barrels of oil per day, with natural gas and gas liquids amounting to 141 boepd.
The company continued to carry-out workovers to lift production volumes across its operations.
Net revenues for the three months ended September 30 amounted to US$2.9mln, up from US$2.2mln in the third quarter of last year.
Revenue for the nine months to the end of September totalled US$7.6mln, versus US$7.9mln for last year’s comparative.
The average realised oil price was US$33.58 for the quarter, and that makes the nine month measure US$29.89 per barrel.
Cashflow for the quarter was negative US$1.7mln, though the company reports US$100,000 of comprehensive income for the three month period.
SDX ended the quarter with US$5mln of cash and no debt.
Welch added: “Our high margin producing assets and an exciting exploration programme, combined with a strong balance sheet leave us well placed to capitalise on value accretive asset opportunities in the region.”
Story by ProactiveInvestors