TIDMSDX
RNS Number : 4407F
SDX Energy Inc.
21 February 2018
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.
21 February 2018
SDX ENERGY INC.
("SDX" or the "Company")
Result of KSS-2 well, Morocco
SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil
and gas company, announces that the KSS-2 well on the Sebou permit
in Morocco was drilled to a total depth of 1293 meters encountering
8 net meters of high quality reservoir interval in the Gaddari and
Guebbas sequences with an average porosity of 30%. However, whilst
the intervals came in on prognosis, they had low gas saturation and
were not deemed to be commercial.
The KSS-2 well is the sixth in the Company's current nine well
campaign, of which four wells have been commercial discoveries. As
a result of the campaign's success to date, the result of the KSS-2
well is not expected to impact the Company's previously announced
planned production increase in Morocco in 2018.
Unlike the previously drilled targets, the KSS-2 prospect was on
the upthrown side of the main bounding fault in the Ksiri area.
This fault appears to have isolated the KSS-2 well from the source
rock, resulting in low gas saturations. The next well in the
campaign, the SAH-2 well, will be located on the downthrown side of
the fault, drilling a similar structure to the Company's recently
successful wells. The Company therefore believes that the
reservoirs targeted by the SAH-2 well will have a higher
probability of being commercially charged than the KSS-2 well.
The KSS-2 well will now be plugged and abandoned and the
drilling rig will move to the SAH-2 drilling location.
Paul Welch, President and CEO of SDX, commented:
"Whilst the KSS-2 well was not a commercial success, we are
viewing this one result in the context of what is already a very
successful drilling campaign with four out of six discoveries to
date. Using directional drilling equipment for the first time in
the basin, we drilled a step out location in order to try to prove
up a new concept, and potentially new volumes. Whilst KSS-2 was not
successful, our belief is that this result proves that the main
bounding fault provides a good seal and therefore gives us a
further confidence in the forthcoming prospects. We are looking
forward to drilling the final three wells in this programme and
reporting on their 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 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's
portfolio also includes high impact exploration opportunities in
both Egypt and 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
Stifel Nicolaus Europe Limited (Nominated
Adviser and Joint Broker)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Cantor Fitzgerald Europe (Joint Broker)
David Porter
Tel: +44 207 7894 7000
GMP FirstEnergy (Joint Broker)
Jonathan Wright/David van Erp
Tel: +44 207 448 0200
Celicourt (PR)
Mark Antelme/Jimmy Lea/Ollie Mills
Tel: +44 207 520 9261
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 impact of the KSS-2 well results on the Company's planned
production rate increase and the Company's outlook for the SAH-2
well and its other forthcoming prospects, should be regarded as
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.
All timing given in this announcement, unless stated otherwise
is indicative and while the Company endeavours to provide accurate
timing to the market, it cautions that due to the nature of its
operations and reliance on third parties this is subject to change
often at little or no notice. If there is a delay or change to any
of the timings indicated in this announcement, the Company shall
update the market without delay.
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 nine months ended September 30, 2017,
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLLLFFRFAIIFIT
(END) Dow Jones Newswires
February 21, 2018 02:00 ET (07:00 GMT)
Sdx Energy (LSE:SDX)
Historical Stock Chart
From Apr 2024 to May 2024
Sdx Energy (LSE:SDX)
Historical Stock Chart
From May 2023 to May 2024