Update on ONZ-7 well, Morocco

RNS Number : 9813D
SDX Energy Inc.
06 February 2018
 

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.

 

 

 

 

6 February 2018

SDX ENERGY INC.

("SDX" or the "Company")

 

Update on ONZ-7 well, Morocco

 

SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that the ONZ-7 well on the Sebou permit in Morocco has been completed and tested. 

 

Using a 48/64" choke, the ONZ-7 well achieved an average flow rate of conventional natural gas of 10 MMscf/d (million standard cubic feet per day).  The well will now be shut in for several days for a pressure build-up after which it will be connected to the local infrastructure.

 

Paul Welch, President and CEO of SDX, commented:

"Today's positive update on ONZ-7 reaffirms our view that the Sebou permit has the potential to be highly cash generative for SDX.  Furthermore, the maximum flow rate during this test of 15.34MMscf/d is the highest achieved to date in the basin. This provides us with further confidence in being able to deliver our gross production target of 8-10MMscf/d of conventional natural gas in Morocco by the end of 2018."

About SDX

 

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.

 

For further information, please see the website of the Company at www.sdxenergy.com or the Company's filed documents at www.sedar.com

 

 

 

 

 

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)

David Porter

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/Ollie Mills

Tel: +44 207 520 9261

 

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.

 

ForwardLooking Information

 

Certain statements contained in this press release may constitute "forwardlooking 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 ONZ-7 to existing infrastructure, the potential of the Sebou permit to be highly cash generative and the Company's gross production target, 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 costsavings; 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.

 

All timing given in this announcement, unless stated otherwise is indicative and while the Company endeavours 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 forwardlooking 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 nine 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 forwardlooking 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 forwardlooking information, except as required by applicable law. The forwardlooking information contained herein is expressly qualified by this cautionary statement.

 

Oil and Gas Advisory

 

Certain disclosure in this news release constitutes "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 conventional natural gas flow rates attributable to the resources of the Company. Such discloser has been prepared by management of the Company and has 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.


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