SDX Output to Soar on Egyptian Field Launch

North Africa-focused SDX Energy ramped up oil and gas production to 4,020 barrels of oil equivalent/day in 2019, up 12% yr/yr, according to a company statement late January 22.

Output is slated to climb to 6,750-7,000 boe/day in 2020, SDX said, following the launch last November of the South Disouq gas field in Egypt.

SDX has a 55% stake in South Disouq, with partner IPR Energy holding the remaining interest. South Disouq reached its target output plateau in early December, three months earlier than scheduled, and SDX expects to net 4,300-4,460 boe/day of production from the field in 2020.

 “We have entered 2020 in a strong position with production at record levels, good monthly cash generation, a strong balance sheet and a busy work programme of drilling ahead of us, which is all fully funded,” CEO Mark Reid commented. “With eight wells planned for H1 2020, six of which are exploration/appraisal in nature, we are moving into a very exciting period of activity and I look forward to providing further updates in due course.”

SDX also works in Morocco, where it intends to complete a 12-well drilling campaign this year. It also plans to sink two more exploration wells at South Disouq and three appraisal and development wells at Egypt’s West Gharb concession.

Capital expenditure is expected to wind down this year to $25.5mn, down from $40.7mn in 2019.