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.
LONDON, Aug. 17, 2018 /CNW/ - SDX Energy Inc. (TSXV, AIM:
SDX), the North Africa focused oil
and gas company, is pleased to announce that a successful
production test has been conducted at its SD-3X appraisal well at
South Disouq, Egypt (SDX 55%
working interest and operator).
The well flowed at a maximum rate of 16.1 MMscfd of conventional
natural gas during an eight hour clean up period and was then shut
in for eight hours, during which time no pressure decline was
observed. Following this, by varying choke sizes, the well was
flowed for two successive six-hour periods at average rates of 5.3
MMscfd and 8.4 MMscfd respectively and one extended flow period of
12-hours at an average rate of 10.5 MMscfd.
The SD-3X well was subsequently shut in for a pressure build-up
of 96 hours, which is currently on-going. At completion of the
build-up, the downhole pressure gauges will be retrieved and the
well suspended prior to being connected to the local production
facilities. During testing a total of 12.02 MMscf of conventional
natural gas was produced.
Paul Welch, President and CEO
of SDX, commented:
"We are very pleased with the test results of the SD-3X well
as it exceeded our expectations. The well is located the furthest
down dip on the structure and had the least amount of pay when
compared to the two offset wells. We therefore limited both the
test duration and peak rates to ensure that no damage was done to
the well whilst testing it. The well performed in line with the
offsets even with the reduced pay section. We are now very
confident that we can achieve the peak rates at the planned
facility at South Disouq of 60MMscfd of conventional natural gas
with our current well stock. We intend to connect this well
to infrastructure located adjacent to our SD-1X discovery over the
coming months. We are targeting a late Q4 2018 start-up of
production in South Disouq.
The rest of our portfolio of assets continues to perform well
and I look forward to updating our shareholders on all of our
activity when we release our Q2 results on August 28, 2018."
About SDX
SDX is an international oil and gas exploration, production and
development company, headquartered in London, 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. It
also has a 55% operated working interest in the South Disouq
concession in the Nile Delta area, which consists of development,
appraisal and exploration assets. In Morocco, SDX has multiple assets in the
northern Gharb basin with a 75% operated working interest in Sebou,
a producing concession, along with exploration and appraisal assets
in its Gharb Centre and Lalla Mimouna concessions (75% operated
working interests in both concessions).
For further information, please see the website of the Company
at www.sdxenergy.com or the Company's filed documents at
www.sedar.com.
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 connection of SD-3X to local production facilities, the
start-up date for production in South Disouq and the Company's
production rate all 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 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. The SD-3X test
results are not necessarily indicative of long-term performance or
of ultimate recovery. 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.
Oil and Gas Advisory
Certain disclosure in this news release constitute "anticipated
results" for the purposes of National Instrument 51-101 of the
Canadian Securities Administrators because the disclosure in
question may, in the opinion of a reasonable person, indicate the
potential value or quantities of resources in respect of the
Company's resources or a portion of its resources. Without
limitation, the anticipated results disclosed in this news release
include estimates of flow rate attributable to the resources of the
Company. Such estimates have been prepared by management of the
Company and have not been prepared or reviewed by an independent
qualified reserves evaluator or auditor. Anticipated results are
subject to certain risks and uncertainties, including those
described above and various geological, technical, operational,
engineering, commercial and technical risks. In addition, the
geotechnical analysis and engineering to be conducted in respect of
such resources is not complete. Such risks and uncertainties may
cause the anticipated results disclosed herein to be inaccurate.
Actual results may vary, perhaps materially.
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).
Glossary
MMscf________million standard cubic feet
MMscfd
million standard cubic feet per day
SOURCE SDX Energy Inc.