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.
CALGARY, Jan. 4, 2018 /CNW/ - SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is today providing an update on its operations in Morocco.
The KSR-16 well has been connected to the sales line and flow testing is expected to commence early next week. The Company will update the market on the results in due course.
In addition, SDX has been granted a four-month extension to its Lalla Mimouna permit, through to July 22, 2018. This will allow the Company sufficient time to evaluate the results of its upcoming exploration drilling campaign on the permit, which is expected to take place in March 2018.
Following the recent announcement of its spud, the ELQ-1 well in the Gharb Centre permit has been drilled to a total depth of 1484 meters and has encountered 22.6 net meters of reservoir interval and two meters of marginal net conventional gas pay, in the Hoot formation. Management are of the view that the intervals are not sufficiently commercial to complete the well. As such, the well will be plugged and abandoned and the drilling rig will move to the ONZ-7 development location.
Paul Welch, President and CEO of SDX, commented:
"Despite the result at ELQ-1, we remain very upbeat about the remainder of our Moroccan drilling campaign, which has already yielded discoveries from the first three of this nine well campaign. It is important to note that this well is also the only one in the current program drilled using legacy low-resolution 3D data, acquired from the previous operator. It was an important test that has strengthened our belief in the need to acquire high resolution 3D seismic data, that we have successfully used in our first three wells, across all of our concessions of interest.
"As previously mentioned, a new high-resolution 3D seismic program, in the Gharb Centre concession, has been awarded and the acquisition is on track to begin in the second quarter of 2018. The result of this survey will double the area covered by high resolution 3D data, providing significant additional potential for prospect delineation. We remain on track to achieve our target of increasing gas sales volumes in Morocco by up to 50% and we look forward to updating the market on this in due course."
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 Gharb 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.
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 Company's plans at the Gharb Centre permit, the completion of the KSR-16 well and its connection to existing infrastructure and the testing of and release of subsequent results for the KSR-16 well, 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 and twelve 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.
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; 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): Sarah Wharry, 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, Tel: +44 207 520 9260