SDX ENERGY INC ("SDX" or the "Company") - Morocco operations update
Apr 25, 2017, 02:00 ET
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, 25 April, 2017 /CNW/ - SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to provide an update on its Moroccan activities.
The Lalla Mimouna Nord and Sud permits, covering an area of over 2211 km2 located in the Rharb Basin, are being extended until March 2018. The drilling campaign remains on schedule for two exploration wells in the second half of 2017.
At Sebou, a 135km2 concession located in the Rharb Basin, extensions have been granted for the following producing concessions:
- Gueddari NW to 2 February 2019
- Gueddari Sud to 18 January 2020
- Sidi Al Harati SW to 20 September 2023
- Ksiri Central to 18 January 2025
The Sebou exploration permit is being renewed for eight years, with SDX committing to drilling three exploration wells within the first four-year period. SDX plans to drill two of the exploration wells towards this commitment in 2017 in addition to the three wells slated to be drilled in the Ksiri producing concession later this year. These planned wells are all close to existing infrastructure and can be put on production quickly.
The process of granting the awards and concession extensions named above is subject to the final standard customary approvals by the Moroccan authority. This is the normal administrative procedure in country.
Paul Welch, CEO of SDX Energy, commented:
"2017 has already proven to be an extremely active time for SDX, as we focus on developing our assets across the portfolio, in both Morocco and Egypt. We are encouraged by the opportunity set that we have acquired and subsequently developed in Morocco. The extensions in Sebou will allow SDX to execute on a drilling campaign that will provide additional production capacity and reserves, if successful. The Lalla Mimouna and Sebou concessions in Morocco provide us with the potential to further grow the business as we seek to get the most out of the opportunity that exists in Morocco's local gas market.
"The remainder of the year is set to be a period of high activity in Morocco, with a total of seven wells to be drilled. This will continue to build on the solid progress made to date for SDX in delivering high margin growth across the portfolio."
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 Dessert, 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 high impact exploration opportunities in 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.
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.
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.
SOURCE SDX Energy Inc.
For further information: SDX Energy Inc., Paul Welch, President and Chief Executive Officer, Tel: +44 203 219 5640; Mark Reid, Chief Financial Officer, Tel: +44 203 219 5640; Cantor Fitzgerald Europe, (Nominated Adviser & Joint Broker), Sarah Wharry/Craig Francis, Tel: +44 207 7894 7000; FirstEnergy Capital LLP (Joint Broker), Jonathan Wright/David van Erp, Tel: +44 207 448 0200; Celicourt (PR), Mark Antelme/ Joanna Boon / Jimmy Lea, Tel: +44 207 520 9260
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