TIDMSDX
RNS Number : 1227Q
SDX Energy Inc.
25 November 2016
SDX ENERGY INC
("SDX" or the "Company")
THIRD QUARTER 2016 FINANCIAL AND OPERATING RESULTS
SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil
and gas company, is pleased to announce its 2016 Third Quarter
Financial and Operating Results ("Q3 2016" or "9 months ended
September 30, 2016").
Third Quarter 2016 Highlights
Corporate and Financial
-- Key financial metrics for the 3 and 9 months ended September 30, 2016 and 2015 are:
Three months Nine months
ended September ended September
30 30
------------------------------ ------------------- -------------------
US$ million except 2016 2015 2016 2015
per unit amounts
------------------------------ --------- -------- ---------- -------
Net Revenues 2.9 2.2 7.6 7.9
------------------------------ --------- -------- ---------- -------
Netback 1.7 1.4 4.0 5.4
------------------------------ --------- -------- ---------- -------
Net realized average
oil price - US$/barrel 33.58 33.30 29.89 37.29
------------------------------ --------- -------- ---------- -------
Net cash (used in)/generated
from operating activities (1.7) 0.8 (2.6) (1.3)
------------------------------ --------- -------- ---------- -------
Total comprehensive
income/ (loss) 0.1 (1.0) (25.9) 0.9
------------------------------ --------- -------- ---------- -------
-- Comprehensive income of US$0.1 MM in 3 months ended September 30, 2016;
-- Comprehensive loss of US$(25.9) MM for 9 months ended
September 30, 2016 due predominantly to write down of US$(24.4) MM
in the Bakassi West, Cameroon exploration asset resulting from the
decision to withdraw from concession;
-- Invested US$0.2 MM of capital expenditure into business during Q3 2016; and
-- As at September 30, 2016 cash on hand of US$5.0MM and zero debt.
Operational Highlights
-- Average daily oil sales and production service fees equated
to 1,214 barrels of oil per day ("BOP/D") and average daily natural
gas and natural gas liquids production equated to 141 barrels of
oil equivalent per day for Q3 2016 ("BOEP/D")
-- During the 9 months ended September 30, 2016 average daily
oil sales and production service fees equated to 1,213 BOP/D and
average daily natural gas and natural gas liquids production
equated to 141 BOEP/D (to be invoiced at a future date to optimize
revenue recovery);
-- In North West Gemsa, completed six successful well workovers
in the 9 months ended September 30, 2016, one of which was
completed during Q3 2016;
-- In Meseda, following the successful completion of an eight
well workover program and strategic initiative focussed on
development optimization and increasing production, the partners
completed a fluid handling review during Q3 2016 and have now
launched a tendering process to secure the equipment necessary to
increase facility treating capacity;
-- During H1 2016 the 3D seismic acquisition was completed in
South Disouq ahead of schedule and under budget. Seismic data
processing continues, with interpretation to date having identified
potential for both oil and gas bearing prospects with strong Class
III amplitude versus offset responses observed in several
prospects. Enquiries have also been received from a number of
operators regarding farming in to the licence; and
-- Completed technical review of prospectivity at South Ramadan
development concession and an evaluation of project economics is
currently underway which may lead to an exit of the concession.
Outlook:
-- Continue with well workover program at North West Gemsa;
-- Continue with redevelopment, waterflood program and facility capacity upgrade at Meseda;
-- Complete 3D seismic processing and interpretation in South
Disouq and drill a carried exploration well in early 2017;
-- Continue to minimise costs post business combination; and
-- Continue to explore opportunities to expand the asset base in the North Africa region.
Paul Welch, President & CEO of SDX Energy, commented:
"Today's Q3 report marks the end of an extremely busy and
productive period for the company. 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 1(st)
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.
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."
KEY FINANCIAL & OPERATING HIGHLIGHTS
Unaudited interim consolidated financial statements with
Management's Discussion and Analysis for Q3 2016 are now available
on the Company's website at www.sdxenergy.com and on SEDAR at
www.sedar.com.
Unaudited Interim Three months Nine months
Financial Statements ended September ended September
30 30
----------------------- --------- -------------------- ---------------------
$000s except Prior 2016 2015 2016 2015
per unit amounts Quarter
----------------------- --------- --------- --------- ---------- ---------
FINANCIAL
----------------------- --------- --------- --------- ---------- ---------
Gross Revenues 3,384 3,752 2,215 9,926 7,930
----------------------- --------- --------- --------- ---------- ---------
Royalties (863) (823) - (2,366) -
----------------------- --------- --------- --------- ---------- ---------
Net Revenues 2,521 2,929 2,215 7,560 7,930
----------------------- --------- --------- --------- ---------- ---------
Operating costs (1,290) (1,241) (816) (3,530) (2,490)
----------------------- --------- --------- --------- ---------- ---------
Netback 1,231 1,688 1,399 4,030 5,440
----------------------- --------- --------- --------- ---------- ---------
Total comprehensive
income / (loss) (25,164) 140 (1,029) (25,907) 858
----------------------- --------- --------- --------- ---------- ---------
per share (0.45) 0.00 (0.01) (0.45) 0.02
----------------------- --------- --------- --------- ---------- ---------
Funds from operations 593 (9) (297) (7) 3,074
----------------------- --------- --------- --------- ---------- ---------
per share 0.01 (0.00) (0.01) (0.00) 0.05
----------------------- --------- --------- --------- ---------- ---------
Cash, end of
period 6,949 4,961 11,990 4,961 11,990
----------------------- --------- --------- --------- ---------- ---------
Working capital
(excl. cash) 1,283 4,632 (47) 4,632 (47)
----------------------- --------- --------- --------- ---------- ---------
Capital expenditures 6,475 188 797 12,482 2,715
----------------------- --------- --------- --------- ---------- ---------
Total assets 47,231 43,901 42,912 43,901 42,912
----------------------- --------- --------- --------- ---------- ---------
Shareholders'
equity 38,560 39,161 40,769 39,161 40,769
----------------------- --------- --------- --------- ---------- ---------
Common shares
outstanding (000's) 75,934 79,844 56,348 79,844 56,348
----------------------- --------- --------- --------- ---------- ---------
OPERATIONAL
----------------------- --------- --------- --------- ---------- ---------
Oil sales (bbl/d) 554 510 - 557 -
----------------------- --------- --------- --------- ---------- ---------
Production Service
Fee (bbl/d) 616 704 723 656 779
----------------------- --------- --------- --------- ---------- ---------
Total boe/d 1,170 1,214 723 1,213 779
----------------------- --------- --------- --------- ---------- ---------
Brent Oil Price
($/bbl) 45.54 45.78 50.26 41.70 55.25
----------------------- --------- --------- --------- ---------- ---------
West Gharib Oil
Price ($/bbl) 30.38 34.86 40.71 30.44 45.39
----------------------- --------- --------- --------- ---------- ---------
Net realized
price ($/bbl) 31.80 33.58 33.30 29.89 37.29
----------------------- --------- --------- --------- ---------- ---------
Royalties ($/bbl) 8.11 7.37 - 7.12 -
----------------------- --------- --------- --------- ---------- ---------
Operating costs
($/bbl) 12.12 11.11 12.27 10.63 11.71
----------------------- --------- --------- --------- ---------- ---------
Netback ($/bbl) 11.57 15.11 21.03 12.13 25.58
----------------------- --------- --------- --------- ---------- ---------
Proforma Combined Three months Nine months
Business ended September ended September
30 30
----------------------- --------- -------------------- ---------------------
$000s except Prior 2016 2015 2016 2015
per unit amounts Quarter
----------------------- --------- --------- --------- ---------- ---------
FINANCIAL
----------------------- --------- --------- --------- ---------- ---------
Gross Revenues 3,384 3,752 5,063 9,926 18,902
----------------------- --------- --------- --------- ---------- ---------
Royalties (863) (823) (1,058) (2,366) (4,781)
----------------------- --------- --------- --------- ---------- ---------
Net Revenues 2,521 2,929 4,005 7,560 14,121
----------------------- --------- --------- --------- ---------- ---------
Operating costs (1,290) (1,241) (1,467) (3,530) (3,556)
----------------------- --------- --------- --------- ---------- ---------
Netback 1,231 1,688 2,538 4,030 10,565
----------------------- --------- --------- --------- ---------- ---------
Total comprehensive
income / (loss) 25,164 140 (2,784) (25,907) (1,185)
----------------------- --------- --------- --------- ---------- ---------
per share (0.45) 0.00 (0.05) (0.45) (0.00)
----------------------- --------- --------- --------- ---------- ---------
Funds from operations 593 (9) (297) (7) 3,074
----------------------- --------- --------- --------- ---------- ---------
per share 0.01 (0.00) (0.01) (0.00) 0.05
----------------------- --------- --------- --------- ---------- ---------
Cash, end of
period 6,949 4,961 12,480 4,961 12,480
----------------------- --------- --------- --------- ---------- ---------
Working capital
(excl. cash) 1,283 4,632 3,374 4,632 3,374
----------------------- --------- --------- --------- ---------- ---------
Capital expenditures 6,475 188 1,578 12,482 3,955
----------------------- --------- --------- --------- ---------- ---------
Total assets 47,231 43,901 71,170 43,901 71,170
----------------------- --------- --------- --------- ---------- ---------
Shareholders'
equity 38,560 39,161 40,769 39,161 40,769
----------------------- --------- --------- --------- ---------- ---------
Common shares
outstanding (000's) 75,934 79,844 56,348 79,844 56,348
----------------------- --------- --------- --------- ---------- ---------
OPERATIONAL
----------------------- --------- --------- --------- ---------- ---------
Oil sales (bbl/d) 554 510 674 557 794
----------------------- --------- --------- --------- ---------- ---------
Production Service
Fee (bbl/d) 616 704 723 656 779
----------------------- --------- --------- --------- ---------- ---------
Total boe/d 1,170 1,214 1,397 1,213 1,573
----------------------- --------- --------- --------- ---------- ---------
Brent Oil Price
($/bbl) 45.54 45.78 50.26 41.70 55.25
----------------------- --------- --------- --------- ---------- ---------
West Gharib Oil
Price ($/bbl) 30.38 34.86 40.71 30.44 45.39
----------------------- --------- --------- --------- ---------- ---------
Net realized
price ($/bbl) 31.80 33.58 33.30 29.89 37.29
----------------------- --------- --------- --------- ---------- ---------
Royalties ($/bbl) 8.11 7.37 8.23 7.12 11.13
----------------------- --------- --------- --------- ---------- ---------
Operating costs
($/bbl) 12.12 11.11 11.41 10.63 8.28
----------------------- --------- --------- --------- ---------- ---------
Netback ($/bbl) 11.57 15.11 19.75 12.13 24.60
----------------------- --------- --------- --------- ---------- ---------
About SDX
SDX is an international oil and gas exploration, production and
development company, headquartered in London, England, UK, with a
principal focus on Egypt. In Egypt, SDX has an interest in two
production concessions: North West Gemsa and West Gharib (Meseda)
both located in the Eastern Desert. SDX's portfolio also consists
of South Ramadan, a development asset in the Gulf of Suez; South
Disouq, an exploration asset in the Nile Delta. For further
information, please see the website of the Company at
www.sdxenergy.com or the Company's filed documents at
www.sedar.com.
For further information:
SDX Energy Inc.
Paul Welch
President and Chief Executive Mark Reid
Officer Chief Financial Officer
Tel: +44 203 219 5640 Tel: +44 203 219 5640
Cantor Fitzgerald Europe
(Nominated Adviser & Joint
Broker)
Sarah Wharry/Craig Francis
Tel: +44 207 894 7000
GMP FirstEnergy (Joint
Broker)
Jonathan Wright/David
van Erp
Tel: +44 207 448 0200
Celicourt (PR)
Mark Antelme/ Joanna Boon
Tel: +44 207 520 9260
Advisory
Forward-Looking Statements
Certain statements contained in this press release constitute
"forward-looking statements" as such term is used in applicable
Canadian securities laws. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or are
not statements of historical fact should be viewed as
forward-looking statements. In particular, statements concerning
the completion of and anticipated results from the workover program
at North West Gemsa; the completion of the redevelopment and
upgrade at Meseda, the exploration plans for the Company's asset at
South Disouq, including the completion of the 3D seismic processing
and interpretation, well location assessment and the drilling of a
carried exploration well; should be viewed as forward-looking
statements.
The forward-looking statements contained in this document are
based on certain assumptions and although management considers
these assumptions to be reasonable based on information currently
available to them, undue reliance should not be placed on the
forward-looking statements because SDX can give no assurances that
they may prove to be correct. This includes, but is not limited to,
assumptions related to, among other things, commodity prices and
interest and foreign exchange rates; planned synergies, capital
efficiencies and cost-savings; applicable tax laws; future
production rates; the sufficiency of budgeted capital expenditures
in carrying out planned activities; and the availability and cost
of labour and services.
By their very nature, forward-looking statements are subject to
certain risks and uncertainties (both general and specific) that
could cause actual events or outcomes to differ materially from
those anticipated or implied by such forward-looking statements.
Such risks and other factors include, but are not limited to
political, social and other risks inherent in daily operations for
the Company, risks associated with the industries in which the
Company operates, such as: operational risks; delays or changes in
plans with respect to growth projects or capital expenditures;
costs and expenses; health, safety and environmental risks;
commodity price, interest rate and exchange rate fluctuations;
environmental risks; competition; failure to realize the
anticipated benefits of the Transaction and to successfully
integrate the Parties; ability to access sufficient capital from
internal and external sources; and changes in legislation,
including but not limited to tax laws and environmental
regulations. Readers are cautioned that the foregoing list of risk
factors is not exhaustive and are advised to reference SDX's Annual
Information Form for the year ended December 31, 2015 for a
description of additional risks and uncertainties associated with
SDX's business, including its exploration activities, which can be
found on SDX's SEDAR profile at www.sedar.com.
The forward-looking statements contained in this press release
are made as of the date hereof and SDX does not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, except as required by applicable law.
The forward-looking statements contained herein are expressly
qualified by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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