SDX Energy — Full year results

SDX Energy (LN: SDX)

Last close As at 18/04/2024

17.50

0.00 (0.00%)

Market capitalisation

36m

More on this equity

Research: Energy & Resources

SDX Energy — Full year results

SDX Energy has grown significantly over the past 12 months. To some degree, the full year results of 24 March 2017 are less relevant as an indicator of current operations of the company. The January acquisition of Circle Oil’s Moroccan and Egyptian assets and current drilling of South Disouq stand to add to the production assets of Meseda and North West Gemsa, from which SDX produced 2.1kboe/d in 2016. SDX is in good health, holding $18m in cash as of March and has material new cash flows from the Moroccan gas production. Newsflow from South Disouq will remain the near-term catalyst and could be transformational if successful. We have adjusted our valuation, leaving an updated full NAV of 57p/share.

Analyst avatar placeholder

Written by

Energy & Resources

SDX Energy

Full year results

Full year results

Oil & gas

3 April 2017

Price

49.25p

Market cap

£92m

US$/£0.8

Net cash ($m) at 28 February 2017

18.3

Shares in issue

186.9m

Free float

59%

Code

SDX

Primary exchange

AIM

Secondary exchange

TSX Venture

Share price performance

%

1m

3m

12m

Abs

0.5

49.2

N/A

Rel (local)

(0.4)

44.9

N/A

52-week high/low

50p

18p

Business description

SDX Energy is a North African onshore player listed in Toronto and London. It has plans to increase net production in Egypt (primarily through workovers and waterflood) while 2017 should see a carried exploration well. It has recently added high-value gas production in Morocco.

Next events

South Disouq results

April

Meseda waterflood ramp-up

Mid-2017

Analysts

Will Forbes

+44 (0)20 3077 5749

Elaine Reynolds

+44 (0)20 3077 5713

SDX Energy is a research client of Edison Investment Research Limited

SDX Energy has grown significantly over the past 12 months. To some degree, the full year results of 24 March 2017 are less relevant as an indicator of current operations of the company. The January acquisition of Circle Oil’s Moroccan and Egyptian assets and current drilling of South Disouq stand to add to the production assets of Meseda and North West Gemsa, from which SDX produced 2.1kboe/d in 2016. SDX is in good health, holding $18m in cash as of March and has material new cash flows from the Moroccan gas production. Newsflow from South Disouq will remain the near-term catalyst and could be transformational if successful. We have adjusted our valuation, leaving an updated full NAV of 57p/share.

Year
end

Revenue
($m)

PBT*
($m)

Operating
cash flows ($m)

Net (debt)/
cash ($m)

Cash from investing ($m)

12/15

11.4

11.1

(5.2)

8.2

(0.3)

12/16

12.9

(26.7)

(1.9)

4.7

(11.1)

12/17e

43.6

8.9

28.5

31.0

(40.3)

12/18e

57.5

24.4

40.5

58.0

(13.5)

Note: *PBT is normalised. Note: the financials above do not include the impact of South Disouq, given its potential impact on the company (but uncertain result).

Moroccan and Egypt ramping up in 2017

At North West Gemsa, the workover and ESP installation programme continues. Meseda’s waterflood operations should ramp up as ESPs are replaced, facilities are upgraded, and two development and two exploration wells are drilled. In Morocco, the company plans an aggressive campaign, drilling up to five wells in H217 in order to supply existing and new customers in a gas-deprived market.

South Disouq results in mid to late April

We have remodelled our indicative South Disouq development to start commercial production in late 2017 and ramp up to reach a six-year plateau of 25mboe/d. With such a large target (585bcfe gross), successful exploration would be transformational, more than doubling cash flows from current levels (should SDX retain its current working interest). Development could be fast and cheap, helped by nearby infrastructure. These factors drive a pre-drill risked (20%) value for the prospect at around 12p/share.

Valuation: Full NAV stays at 57p/share

We have adjusted our modelling to reflect slightly lower than expected production for Meseda and North West Gemsa. Meseda’s waterflood development should ramp-up in 2017 as facilities are brought online, with significant production increases expected by year end. Factoring in these changes and adjusting for full year results, our full NAV is essentially unchanged, at 57p/share. This includes the risked value of South Disouq, which we expect to complete in mid- to late April.

Summary of full year results

Given the changes within the company ($30m acquisition of Circle Oil assets on 27 January 2017), and with macro factors (Brent oil briefly traded at less than $30/bbl in January 2016) over the past 12 months, the 2016 financial results are largely irrelevant to investors.

Reported net loss of $28m was affected by material one-off items (primarily exploration expense and impairments totalling $29.1m). The exploration write-down is mainly due to Bakassi West well failure ($24.4m), while the impairment included a $4.3m charge at North West Gemsa, which is mainly the result of lower oil price assumptions used by the auditors (of approximately $58/bbl going forward). The assets absorbed cash from operations of $1.9m and investments of $12m.

Operationally, the 10% WI in North West Gemsa and 50% interest in Meseda generated average oil and production service fee production of 2,131boe/d. Average realised oil prices were $38/bbl (vs Brent of $45/bbl). Importantly, operating costs of $6.77/boe over the year were down year-on-year (from $14.7/boe). These reductions in opex are crucial for cash generation going forward.

In March 2017, SDX had net production of 2,794boe/d at North West Gemsa, 776bbl/d at Meseda and 663boe/d in Morocco. These compare to our 2017 full year estimates of 2,532boe/d, 950bbls/d and 810boe/d respectively. We expect North West Gemsa production to decline slightly. Increases are expected at Meseda due to waterflood operations and in Morocco because of expanded development and exploration drilling.

South Disouq

The South Disouq well was spudded in mid-March and is expected to reach target depth in mid- to late April. The well is targeting a 585bcf gas accumulation (320bcf net to SDX’s 55% WI), but recent work has identified deeper, oily targets within the Abu Roash and AEB horizons (proven as prolific producers in the Western Desert) that would be valuable additions to any gas discovery. The majority of wells costs are carried by partner IPR (45% WI).

The prospect lies close to three major gas and oil trunk lines (5-11km); any discovery can be developed cost effectively within a relatively short time frame. The company believes target depth to first production can be achieved “in months”.

According to the company, a number of proposals have been received from operators looking to farm-in to the licence. This will enable the company to make appropriate decisions over risk reduction and capital investment in the event of a discovery.

Exhibit 1: South Disouq is close to the Mediterranean coast and on trend with production

Exhibit 2: Multiple targets of gas and oil

Source: SDX

Source: SDX

Exhibit 1: South Disouq is close to the Mediterranean coast and on trend with production

Source: SDX

Exhibit 2: Multiple targets of gas and oil

Source: SDX

We have updated our illustrative discovery at South Disouq. We assume 90% gas/10% condensate with a total size of 585bcfe. We assume first production in late 2017, ramping up over time as more wells are drilled and facilities are brought online. Well costs of around $3-4m imply life of field capex of $3/boe, although costs of wells/facilities/supporting infrastructure will be better known once the gas characteristics are better understood. We assume opex of $4.5/boe and a plateau of around 25mboe/d of around six years. These assumptions are subject to considerable uncertainty.

Given the ramp-up of production and the company’s greater financial capacity after the fund raise and Circle assets acquisition, we apply a higher CoS of 20% (from 13.0% previously), as it has more capacity to fund its own development rather than required dilutive farm-down deals. This leads to an increase in South Disouq’s value to the company.

Exhibit 3: Proximity of targets to pipelines

Source: SDX

The success and subsequent development of South Disouq would transform the cash flow generation of the company. If SDX were to retain its current 55% working interest, it would have to fund material near-term capital investments, but may then see cash inflows that would dwarf current cash generation, as seen below.

Exhibit 4: Modelled production rates at South Disouq (100% WI basis)

Exhibit 5: Modelled net cash flows for SDX (55% WI basis) for South Disouq

Source: Edison Investment Research

Source: Edison Investment Research

Exhibit 4: Modelled production rates at South Disouq (100% WI basis)

Source: Edison Investment Research

Exhibit 5: Modelled net cash flows for SDX (55% WI basis) for South Disouq

Source: Edison Investment Research

Valuation

We adjust our valuation to account for reduced production expectations from Meseda and North West Gemsa in 2017 and take the actual end-year cash figure. Reductions to core NAV are partially offset by an increase in value of the South Disouq well, where we have increased our volumes to match the 585bcfe as given by the company and raised our estimated CoS slightly. This results in a full NAV essentially unchanged at 57p/share.

Exhibit 6: NAV summary

Asset

Number of shares: 187m

Recoverable reserves 

 

Net risked value

Country

Diluted WI

CoS

Gross

Net

Net attributable

NPV

Absolute

GBp/share

C$/share

 

%

%

mmboe

$/boe

$m

DR of 12.5%

Net (debt)/cash - Dec 2016

100%

100%

5

2.0

0.03

Cash raised minus acqn minus costs

100%

100%

7

3.1

0.05

SG&A - NPV10 of 4 years

100%

100%

(11)

(4.6)

(0.08)

Net financial income (expenses) NPV 2 years

100%

100%

0

0.0

0.00

2017 Exploration

100%

100%

(4)

(1.7)

(0.03)

Receivable for gas and NGLs at NW Gemsa (as yet not invoiced)

100%

100%

2

0.6

0.01

Production

Meseda Base case - Edison

Egypt

50%

100%

3.9

2.0

0.7

6.2

12

5.2

0.09

Meseda Base + Workovers - Edison

Egypt

50%

90%

4.5

2.3

0.9

6.0

12

5.3

0.09

Gemsa 1P

Egypt

50%

100%

4.1

2.1

2.1

9.4

19

8.3

0.14

Gemsa 2P

Egypt

50%

100%

1.9

1.0

1.0

9.9

10

4.1

0.07

Sebou 2P

Morocco

75%

100%

1.0

0.8

0.8

34.6

26

11.3

0.19

Acquired working capital (NPV of 4-year release)

Morocco

100%

100%

15

6.2

0.10

Core NAV

 

 

 

15.5

8.0

5.4

9.9

93

39.9

0.67

Development upside

Meseda Base + Workovers + Waterflood - Edison

Egypt

50%

40%

9.1

4.6

1.7

4.0

7

3.2

0.05

Gemsa - Edison modelling on full field

Egypt

50%

75%

1.2

0.6

0.6

5.7

3

1.1

0.02

Sebou - Accelerated programme

Morocco

75%

40%

0.9

0.7

0.7

7.9

2

0.9

0.02

South Disouq

Egypt

55%

20%

96

53

52.9

2.5

27

11.5

0.19

Full NAV

 

 

 

122.9

66.7

61.3

1.8

132

56.5

0.94

Source: Edison Investment Research, company accounts

Financials

As of December 2016, SDX Energy held $4.7m in cash. After the acquisition and equity raise, SDX held $18.3m as of 28 February 2017. Together with the cash generation capability of the Egyptian and Moroccan assets, this puts the company in a robust financial position.

Exhibit 7: Cash flows with and without South Disouq

Source: Source: Edison Investment Research. Note: there are significant capital investments in 2017 and 2018 that are offset by cash outflows. Depending on the eventual timing of investments and production, the actual cash flows in 2017 and 2018 may swing notably.

Exhibit 8: Financial summary

Accounts: IFRS; year end: December

$’000s 

2014A

2015A

2016A

2017E

2018E

Total revenues

 

 

24,533

11,372

12,914

43,638

57,501

Cost of sales

 

 

(3,639)

(4,973)

(5,282)

(13,221)

(14,558)

Gross profit

 

 

20,894

6,399

7,632

30,417

42,943

SG&A (expenses)

 

 

(1,768)

(3,746)

(2,457)

(2,809)

(1,665)

Other income/(expense)

 

 

0

(3)

479

0

0

Exceptionals and adjustments

 

(3,831)

(7,676)

(29,089)

(1,000)

(1,000)

Depreciation and amortisation

 

(1,602)

(2,057)

(3,266)

(17,670)

(15,872)

Reported EBIT

 

13,693

(7,083)

(26,701)

8,938

24,405

Finance income/(expense)

 

(1,009)

(96)

4

0

0

Other income/(expense)

 

0

18,289

0

0

0

Reported PBT

 

 

12,684

11,110

(26,697)

8,938

24,405

Income tax expense (includes exceptionals)

 

 

(4,328)

(1,063)

(1,503)

(823)

(2,085)

Reported net income

 

 

8,356

10,047

(28,200)

8,115

22,320

Basic average number of shares, m

 

 

376

52

72

187

187

Basic EPS

 

 

0.1

0.2

(0.4)

0.0

0.1

 

 

 

 

 

 

 

 

Balance sheet

 

 

Property, plant and equipment

 

 

9,392

18,401

12,605

17,273

15,831

Goodwill

 

 

0

0

0

0

0

Intangible assets

 

 

16,460

23,473

10,623

11,772

13,375

Other non-current assets

 

 

1,999

2,106

2,503

3,077

3,077

Total non-current assets

 

 

27,851

43,980

25,731

32,121

32,283

Cash and equivalents

 

 

17,935

8,170

4,725

30,950

57,995

Inventories

 

 

0

1,188

1,698

1,698

1,870

Trade and other receivables

 

 

3,306

6,678

9,463

38,463

30,770

Other current assets

 

 

0

0

0

0

0

Total current assets

 

 

21,241

16,036

15,886

71,111

90,635

Non-current loans and borrowings

 

 

0

0

0

0

0

Other non-current liabilities

 

 

608

286

290

290

290

Total non-current liabilities

 

 

608

286

290

290

290

Trade and other payables

 

 

1,686

3,556

3,674

18,174

14,539

Current loans and borrowings

 

 

2,207

0

0

0

0

Other current liabilities

 

 

5,142

928

389

389

389

Total current liabilities

 

 

9,035

4,484

4,063

18,563

14,928

Equity attributable to company

 

 

39,449

55,246

37,264

84,379

107,700

 

 

 

 

 

 

 

 

Cashflow statement

 

 

Profit before tax

 

 

12,684

11,110

(26,697)

8,938

24,405

Depreciation and amortisation

 

 

1,602

2,057

3,266

17,670

15,872

Share based payments

 

 

1,064

761

(47)

1,000

1,000

Other adjustments

 

 

1,670

(12,281)

25,742

(1,766)

(2,535)

Movements in working capital

 

 

12,941

(2,183)

(3,440)

3,500

3,886

Income taxes paid

 

 

(4,430)

(4,678)

(766)

(823)

(2,085)

Cash from operations (CFO)

 

 

25,531

(5,214)

(1,942)

28,519

40,544

Capex

 

 

(13,634)

(5,120)

(11,890)

(11,486)

(16,034)

Acquisitions & disposals net

 

 

0

0

0

(30,000)

0

Other investing activities

 

 

1,110

4,836

825

1,192

2,535

Cash used in investing activities (CFIA)

 

(12,524)

(284)

(11,065)

(40,294)

(13,500)

Net proceeds from issue of shares

 

 

0

0

10,127

38,000

0

Movements in debt

 

 

0

(3,702)

(96)

0

0

Cash from financing activities (CFF)

 

 

0

(3,702)

10,031

38,000

0

Increase/(decrease) in cash and equivalents

 

 

13,007

(9,200)

(2,976)

26,225

27,045

Currency translation differences and other

 

 

(615)

(565)

(469)

0

0

Cash and equivalents at end of period

 

17,935

8,170

4,725

30,950

57,995

Net (debt) cash

 

 

15,728

8,170

4,725

30,950

57,995

Source: Edison Investment Research, company accounts. Note: excludes South Disouq due to distortionary nature of development in the case of drilling success.

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2017 Edison Investment Research Limited. All rights reserved. This report has been commissioned by SDX Energy and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2017. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2017 Edison Investment Research Limited. All rights reserved. This report has been commissioned by SDX Energy and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2017. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on SDX Energy

View All

Latest from the Energy & Resources sector

View All Energy & Resources content

Energy & Resources

ABO Wind: EKF 2023 QuickView

Energy & Resources

Canacol Energy — 2022 ESG report highlights new goals

Energy & Resources

Canacol Energy — Q2 results in line

Energy & Resources

Canacol Energy — Increasing activity

Research: Energy & Resources

SDX Energy — Gas discovered at South Disouq

SDX has announced it has discovered gas in the Abu Madi structure of the South Disouq SD-1X well. The well came in on prognosis, validating the company’s 3D seismic interpretation, and encountering 65ft of excellent quality net pay with average porosity of 25%. This unlocks 150–300bcf of the estimated 585bcf in the Abu Madi, with the remainder now de-risked in four other structures in the area. We expect this to be a material discovery that will contribute to a significant addition to the company reserves and resources (currently estimated to be 12.03mmboe on a 2P basis), increasing our RENAV from 57p to 76p/share.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free