TIDMSDX
RNS Number : 7973O
SDX Energy Inc.
22 May 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.
22 May 2018
SDX ENERGY INC.
("SDX" or the "Company")
Result of Kelvin-1X exploration well, Egypt
SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil
and gas company, announces that the Kelvin-1X exploration well at
South Disouq, Egypt (SDX 55% working interest and operator) has
been drilled to a total depth of 8075 feet, encountering 606 net
feet of high quality reservoir interval in the Abu--Madi formation
with an average porosity of 21%. However, the sands had low gas
saturation and were not deemed to be commercial.
The well will now be plugged and abandoned, and the rig will
move to the site of the next drilling location on the South Disouq
licence, the SD-4X appraisal well.
Following the April 2017 SD-1X discovery on South Disouq, SDX
targeted two near-field prospects, Ibn Yunus, where the Company has
recently announced a significant discovery, and Kelvin. The
Kelvin-1X well was located structurally updip of the SD-1X
discovery and thought to potentially be connected to the original
SD-1X structure by a continuous gas bearing section. However, the
identified layer appears to be separated from the original
discovery and contains gas with non-commercial saturations. The
Company is now focused on completing the development at SD-1X and
bringing both discoveries on stream as quickly as possible, with
first gas prior to year-end 2018.
Paul Welch, President and CEO of SDX, commented:
"The results of the Kelvin-1X well are not commercial and will
not contribute to the initial production in this first phase of the
development at South Disouq. However, today's news follows the
positive results from previous drilling activity in the concession
where our first two wells were commercial discoveries. The
Kelvin-1X location was an ambitious step-out from the crest of the
identified structure where we were exploring for a larger
stratigraphic portion of the identified trap. Further potential
exists within the current structure but in a location that could
not be reached by side-tracking the well from the Kelvin-1X
location. As a result, we have decided to move forward drilling the
appraisal well locations in the original SD-1X structure so as not
to delay the start of production targeted for the end of the year.
After we have completed the appraisal drilling and established
initial production we plan to commence a further exploration
programme that will target both the remaining potential in the
Kelvin structure along with the deeper oil potential within the
block. We have had a very good run of drilling success lately and
it is unfortunate that Kelvin-1X hasn't worked out. However, we are
looking forward to drilling two appraisal wells on the SD-1X
structure and reporting on these 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 and a 55% interest in the South Disouq appraisal and
development project in the Nile Delta. 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/Nick Tulloch
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
exploration and the timing of production start at South Disouq
should all 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 labor and services.
All timing given in this announcement, unless stated otherwise
is indicative and while the Company endeavors 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 months ended March 31, 2018, 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.
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLPGUGAAUPRPUG
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