SDX Energy Inc. is well placed to maximize the potential of its South Disouq asset in Egypt, says the company’s president and CEO Paul Welch.
“We have a solid financial position which is underpinned by high-margin production that enables us to generate positive free cash flow down to $15 oil,” he commented in a company statement.
“This, combined with an active, and potentially transformational work program, gives us a high degree of confidence about the future,” Welch added.
Along with the completion of workover programs at the North West Gemsa and Meseda assets in Egypt, SDX completed a 3D acquisition in South Disouq ahead of schedule and under budget. Seismic data processing is currently underway and the company hopes to pin down a location to drill by mid to late third quarter this year, with a spud anticipated late in the fourth quarter, Welch told Rigzone.
SDX reported net revenues of $4.6 million in the six months ended June 30. The company invested $6.5 million of its capital expenditure into the business and as at June 30, had cash on hand of $6.9 million and no debt.
The company’s available cash was lower than expected, according to FirstEnergy Capital, due to an increase in receivables where the oil and gas advisory firm had carried a small decrease. In spite of this, FirstEnergy still gave SDX an “outperform” ranking.