TIDMSDX
RNS Number : 5430C
SDX Energy Inc.
18 April 2017
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
SDX TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"),
THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
18 April 2017
SDX ENERGY INC.
("SDX" or the "Company")
Update on SD-1X well
Gas discovery at initial target depth, drilling continues to
lower horizon
SDX Energy Inc. (TSXV, AIM: SDX) ("SDX"), the North Africa
focused oil and gas company, announces that drilling on the carried
SD-1X well at its South Disouq concession, where it holds a 55%
equity interest and is operator in the Nile Delta area of Egypt has
reached its first target depth.
The SD-1X well is targeting gas in the upper Abu-Madi section,
and oil from the deeper Abu Roash and AEB horizon.
To date the well has been drilled to a total depth of 7,777 ft.
reaching its first target depth in the Abu Madi. The Company is
pleased to announce that during drilling, conventional natural gas
bearing horizons were encountered in the Abu Madi. The well
encountered 65 ft. of net pay section with an average porosity of
25%. The results are in line with pre-drill estimates. Additional
evaluation work is currently underway to provide an accurate
recoverable volume estimate which will be the subject of a
subsequent release.
Drilling will now continue to the deeper Abu Roash and AEB
sections, targeting oil. SDX will provide further updates on the
drilling campaign in due course.
Paul Welch, President and CEO of SDX, commented:
"It is clearly very encouraging to have made a gas discovery at
the first of SD-1X's target intervals. The 3D seismic data acquired
and interpreted over the South Disouq concession has provided a
very accurate view of the subsurface as the target interval has
come in on prognosis. This provides us with additional
encouragement for the deeper horizons where we are targeting oil.
Any production testing of the Abu Madi or one of the deeper
horizons will be undertaken after drilling operations have been
completed and the rig has moved off location.
"South Disouq is one strand in the SDX story. We have a diverse
portfolio of assets in Egypt and Morocco, including further
exploration opportunities. Irrespective of whether we have further
success at SD-1X in the deeper horizon, this gas discovery and the
ongoing development and facilities upgrades across our asset
portfolio mean that we remain on track to build our production
profile and maximise the value from our producing, development and
exploration asset base. I am optimistic about our ability to
deliver for our shareholders and also in the deeper sections of
this well and look forward to reporting on our results in due
course."
About SDX
SDX is an international oil and gas exploration, production and
development company, headquartered in London, England, UK, with a
principal focus on North Africa. In Egypt, SDX Energy has a working
interest in two producing assets (50% North West Gemsa & 50%
Meseda) located onshore in the Eastern Desert, adjacent to the Gulf
of Suez. In Morocco, SDX has a 75% working interest in the Sebou
concession situated in the Rharb Basin. These producing assets are
characterised by exceptionally low operating costs making them
particularly resilient in a low oil price environment. SDX Energy's
portfolio also includes two high impact exploration opportunities,
South Disouq in Egypt and Lalla Mimouna in Morocco.
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 Mark Reid
Executive Officer Chief Financial Officer
Tel: +44 203 219 5640 Tel: +44 203 219 5640
Cantor Fitzgerald Europe (Nominated Adviser
& Joint Bookrunner)
Sarah Wharry/Craig Francis
Tel: +44 207 7894 7000
GMP FirstEnergy (Financial Adviser & Joint
Bookrunner)
Jonathan Wright/David van Erp
Tel: +44 207 448 0200
Celicourt (PR)
Mark Antelme/Joanna Boon/Jimmy Lea
Tel: +44 207 520 9260
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward--Looking Information
Certain statements contained in this press release may
constitute "forward--looking information" 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 information. In particular, statements regarding
the future drilling and results thereof at the SD-1X well and the
production of a volume estimate should be regarded a
forward-looking information.
The forward-looking information contained in this document is
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 information 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.
Forward-looking information is 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; 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 Management's Discussion &
Analysis for the three and twelve months ended December 31, 2016, ,
which can be found on SDX's SEDAR profile at www.sedar.com, for a
description of additional risks and uncertainties associated with
SDX's business, including its exploration activities.
The forward--looking information contained in this press release
is as of the date hereof and SDX does not undertake any obligation
to update publicly or to revise any of the included
forward--looking information, except as required by applicable law.
The forward--looking information contained herein is expressly
qualified by this cautionary statement.
Risks and Uncertainties
There is still a +/-50% uncertainty concerning the volume of the
encountered section due to
1) the lateral extent of the accumulation
2) the quality of the reservoir section that would be encountered away from the current location
3) The thickness of the reservoir section away from the current location
4) The hydrocarbon composition of the natural gas encountered and its resulting liquid yield
Additional wells will need to be drilled and tested to reduce
the levels of uncertainty required to properly classify the
discovered hydrocarbons under National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities.
Competent Persons Statement
In accordance with the guidelines of the AIM Market of the
London Stock Exchange the technical information contained in the
announcement has been reviewed and approved by Paul Welch,
President and Chief Executive Officer of SDX. Mr. Welch, who has
over 30 years of experience, is the qualified person as defined in
the London Stock Exchange's Guidance Note for Mining and Oil and
Gas companies. Mr. Welch holds a BS and MS in Petroleum Engineering
from the Colorado School of Mines in Golden, CO. USA and an MBA in
Finance from SMU in Dallas, TX USA and is a member of the Society
of Petroleum Engineers (SPE).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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